{"id":20565,"date":"2022-09-13T11:11:00","date_gmt":"2022-09-13T18:11:00","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=20565"},"modified":"2022-09-08T10:00:07","modified_gmt":"2022-09-08T17:00:07","slug":"bank-of-canada-5th-but-not-final-interest-rate-increase-for-2022-the-impact-on-housing-market","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2022\/09\/bank-of-canada-5th-but-not-final-interest-rate-increase-for-2022-the-impact-on-housing-market\/","title":{"rendered":"Bank of Canada 5th but Not Final Interest Rate Increase for 2022 &#038; The Impact on Housing Market"},"content":{"rendered":"<p style=\"text-align: justify;\">The Bank of Canada (BoC) announced its fifth interest rate increase of the year, raising rates by another 75 basis points. This follows its July announcement where the Bank announced an interest rate hike of 1 percentage point, the largest interest rate increase since August 1998. BoC also cautioned that interest rates will continue to rise in its most recent announcement stating : \u201cGiven the outlook for inflation, the Governing Council still judges that the policy interest rate will need to rise further. Quantitative tightening is complementing increases in the policy rate.\u201d<\/p>\n<p><strong>What to Expect When Qualifying for a Mortgage<\/strong><\/p>\n<p style=\"text-align: justify;\">The rate hike means that the prime lending rate at all financial institutions will increase by 75 basis points. Following the previous interest rate announcement, most prospective fixed-rate borrowers faced stress tests with rates around 7% and 6% for variable-rate borrowers.<\/p>\n<p style=\"text-align: justify;\">This interest rate announcement further impacts the rate borrowers will be tested against. Financial experts suggest that Canadians shopping for a mortgage should weigh all their options and remember that borrowers will often qualify for more if they choose a variable rate instead of a fixed rate.<\/p>\n<p style=\"text-align: justify;\"><strong>The Impact on Canadian Real Estate<\/strong><\/p>\n<p style=\"text-align: justify;\">BoC\u2019s policy rate is now at 3.25% and experts are predicting that future increases will be smaller. Throughout this year, we\u2019ve seen the market shift from what was primarily a seller\u2019s market throughout the peak of the pandemic to many cities being in more balanced or buyers-market territory. \u201cRising interest rates put downward pressure on real estate markets. Following this rate increase announcement, we may see more cities transition to buyer\u2019s markets\u201d explains Lauren Haw, CEO and Broker of Record of Zoocasa. This means that buyers may have more negotiating power during their home search. If you\u2019re planning to enter the market this fall, work with a local real estate agent to understand which markets will favour you in your home-buying journey.<\/p>\n<p style=\"text-align: justify;\"><strong>A Reminder to Homeowners with Existing Variable-Rate Mortgages<\/strong><\/p>\n<p style=\"text-align: justify;\">Canadians with existing variable-rate mortgages will see their rate rise in line with this announcement and should work with their mortgage specialist to plan for further rate increases. If you\u2019re a homeowner with a variable-rate mortgage, you can use our free mortgage calculator to determine what your new monthly payments will be. Some lenders offer fixed payments with variable-rate mortgages which can be a great option to help homeowners budget as interest rates continue to rise. If you already have a variable-rate mortgage, speak to your mortgage broker to learn if you can switch to fixed payments mid-term.<\/p>\n<p><a href=\"https:\/\/www.zoocasa.com\/blog\/boc-sept-2022\/\" target=\"_blank\" rel=\"noopener\">Bank of Canada Announces Fifth but Not Final Interest Rate Increase for 2022<\/a> by Patti Cosgarea | zoocasa<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bank of Canada (BoC) announced its fifth interest rate increase of the year, raising rates by another 75 basis points. This follows its July announcement where the Bank announced &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2022\/09\/bank-of-canada-5th-but-not-final-interest-rate-increase-for-2022-the-impact-on-housing-market\/\">read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-20565","post","type-post","status-publish","format-standard","hentry","category-market-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bank of Canada 5th but Not Final Interest Rate Increase for 2022 &amp; The Impact on Housing Market &#8226; Rory C Real Estate | Oakwyn Realty<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.roryc.ca\/blog\/2022\/09\/bank-of-canada-5th-but-not-final-interest-rate-increase-for-2022-the-impact-on-housing-market\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Bank of Canada 5th but Not Final Interest Rate Increase for 2022 &amp; The Impact on Housing Market &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"The Bank of Canada (BoC) announced its fifth interest rate increase of the year, raising rates by another 75 basis points. 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