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Mortgage rises negligible despite turbulent economy

According to industry players, this mid-long-term stability can be attributed to global developments and government regulations that have conspired to reduce risk-taking in the housing industry.

In particular, new guidelines that compelled banks to set aside money for addressing delinquent loans have given the industry a “war chest” for use in a worst-case scenario.

All of these factors have contributed to keeping potential monthly payment rises in check.

“I think that mortgage rates will remain relatively stable. I just don’t see anything that will send them up,” the CIBC’s Benjamin Tal told CBC News.

While major banks have implemented rate hikes since December—with the CIBC setting its three-year fixed term to 2.59 per cent and the RBC increasing its five-year fixed rate to 3.04 per cent—observers noted that these slight spikes shouldn’t give home owners and would-be buyers reason to panic.

“I think the rise we’ve seen in mortgage rates isn’t really very significant,” Queen’s University real estate academician John Andrew said.

 

The Author Brantford Real Estate

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