Zoocasa
Real Estate Sold Prices
Calculator
Map
Property Trends & Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
  • Real Estate News
Zoocasa
Home Affordability

Reality Check: Interest Rates Are Rising, Securing A Mortgage Now is Best for Buyers

Patti Cosgarea by Patti Cosgarea
April 22, 2022
in Affordability, Bank of Canada, Mortgage News, Mortgages
3 min read
Reality Check: Interest Rates Are Rising, Securing A Mortgage Now is Best for Buyers
Share
Tweet
Share
0 Shares

Last week, the Bank of Canada announced an increase in interest rates by 50 basis points. This is the second increase of the year but not expected to be the last. As interest rates rise, so does the stress test qualifying rate which is two percentage points higher than the actual rate of a mortgage.

  • Read: March Housing Market Cooling Could Be a Good Signal For Home Buyers: CREA

What Does This Mean for Buyers Who Have Already Secured a Pre-Approval or are Planning to Do So?

  1. Pre-approvals are valid for four months, meaning if you secured a pre-approval at the end of 2021 or the beginning of this year, you could still buy a home this spring at your pre-approved, lower interest rate. Great news!
  1. Buyers that have thought about getting pre-approved but have not yet, should consider doing so now. As the interest rate is expected to continue to rise, it will become more difficult to secure a larger mortgage in the coming months. 
  1. For each percentage point the interest rate increases, Canadians will qualify for an approximately 10% smaller mortgage, but there is still time to get pre-approved before rates are increased again. 
  1. Calculate your potential mortgage pre-approval and monthly payments now using our mortgage calculator which features some of the lowest rates available across Canada.

Inventory is Increasing and Price Growth is Slowing Across Canada

Many are counting on the rising interest rates to be a major factor in cooling the housing market, causing downward pressure on home prices. We have seen some lower home prices month-over-month across many Canadian cities following the historic highs in February 2022.  As inventory is growing in many cities, analysts believe this could be leading to a more balanced market. 

  • Read: Home Price Dip in the GTA could signal Signs of Balanced Market for Spring 2022

If you’re considering buying a home this spring, contact us to talk to an agent and receive a free consultation. 

Considering Getting Into The Market This Spring?
Sign Up for a Free Buyer Consultation

Previous Post

March Housing Market Cooling Could Be a Good Signal for Home Buyers: CREA

Next Post

Cheapest York Region Homes Currently Listed for Sale Under $750,000

Patti Cosgarea

Patti Cosgarea

Patti is Zoocasa's Public Relations and Content Marketing Manager. Passionate about marketing and digital communication, she creates content to support Canadians throughout their real estate journey. Outside of Zoocasa, Patti can be found renovating her townhouse in Kitchener and exploring Waterloo region by foot or paddle.

Related Posts

New Owner of the Cheapest Home in GTA has Big Plans for Her “250 Square Feet of Paradise”
Affordability

New Owner of the Cheapest Home in GTA has Big Plans for Her “250 Square Feet of Paradise”

May 13, 2022
Hidden Gems in London, ON Currently Listed for Sale Under $540,000
Affordability

Hidden Gems in London, ON Currently Listed for Sale Under $540,000

May 6, 2022
Great News for Buyers – Home Prices are Dropping in the GTA: TRREB
Affordability

Great News for Buyers – Home Prices are Dropping in the GTA: TRREB

May 4, 2022

Blog Search

No Result
View All Result

Recent Articles

New Owner of the Cheapest Home in GTA has Big Plans for Her “250 Square Feet of Paradise”

New Owner of the Cheapest Home in GTA has Big Plans for Her “250 Square Feet of Paradise”

May 13, 2022
Now is the Time to Sell: Durham Cities Currently Have the Shortest Average Property Days on Market

Now is the Time to Sell: Durham Cities Currently Have the Shortest Average Property Days on Market

May 12, 2022
Updated: 7 Houses Under $900,000 For Sale in Mississauga

Updated: 7 Houses Under $900,000 For Sale in Mississauga

May 11, 2022
Becoming a Real Estate Agent in the Luxury Market

Becoming a Real Estate Agent in the Luxury Market

May 9, 2022
first-time home buyer programs and rebates

Featured Listings (Updated Weekly)

Updated: 7 Houses Under $900,000 For Sale in Mississauga

Updated: 7 Houses Under $900,000 For Sale in Mississauga

May 11, 2022
Hidden Gems in London, ON Currently Listed for Sale Under $540,000

Hidden Gems in London, ON Currently Listed for Sale Under $540,000

May 6, 2022
Updated: Cheapest Toronto Homes Currently Listed for Sale Under $1,000,000

Updated: Cheapest Toronto Homes Currently Listed for Sale Under $1,000,000

May 3, 2022
The Cheapest Toronto Condos Currently Listed for Sale Under $600,000

The Cheapest Toronto Condos Currently Listed for Sale Under $600,000

May 2, 2022

Social Media

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

About Zoocasa

Zoocasa.com is a full-service brokerage that offers advanced online search tools to empower Canadians with the data and expertise they need to make more successful real estate decisions.

Newsletter Sign-up

Join 130,000+ weekly subscribers. Don’t miss important real estate news, market data, and buying and selling tips: sign-up here.

Social Media

Zoocasa Tools

MLS Listings Canada
Search Sold Listings
iOS App
Android App
Find an Agent
Contact Us

  • Homes & Real Estate Properties
  • Terms of Use
  • Privacy Policy
  • Contact Us

© 2015 - 2022 Zoocasa Realty Inc., Brokerage

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
  • Real Estate News
No Result
View All Result

© 2015 - 2022 Zoocasa Realty Inc., Brokerage