The Bank of Canada increased their rate this week, resulting in a mortgage rate increase for home owners\purchasers. The prime interest rate is now 3.2% and will certainly affect the purchasing power of home buyers.
The government has also announced they may introduce a 200 point stress test in October for buyers with a down payment of 20% or more. Which would mean that buyers would need to qualify at 200 points above what their mortgage contract rate will ultimately be, making it more difficult for home buyers to purchase higher priced homes. In Vancouver's hot real estate market, this will certainly have an impact on what buyer's can now afford.
If you're thinking of purchasing a home, we recommend that you obtain your pre-approval as soon as possible. If you'd like the names of some great mortgage brokers, please let us know or download our free app for instant access.