{"id":8193,"date":"2018-02-09T10:10:41","date_gmt":"2018-02-09T18:10:41","guid":{"rendered":"http:\/\/www.roryc.ca\/blog\/?p=8193"},"modified":"2018-02-05T16:27:20","modified_gmt":"2018-02-06T00:27:20","slug":"are-interest-hikes-stopping-prospective-homebuyers","status":"publish","type":"post","link":"https:\/\/www.roryc.ca\/blog\/2018\/02\/are-interest-hikes-stopping-prospective-homebuyers\/","title":{"rendered":"Are Interest Hikes Stopping Prospective Homebuyers?"},"content":{"rendered":"<p style=\"text-align: justify;\">Prospective homebuyers say they won\u2019t be jumping into the Canadian housing market anytime soon if interest rates continue to rise.<\/p>\n<p style=\"text-align: justify;\">According to the Canada Mortgage and Housing Corporation\u2019s (CMHC) 2018 Prospective Home Buyers Survey, the majority of prospective homebuyers said they are concerned that interest rates could increase between now and the time that they make their home purchase.<\/p>\n<p style=\"text-align: justify;\">The online survey, conducted in October 2017, investigates the home buying intentions for 3 groups of future homebuyers, including first-time buyers, previous homeowners and current homeowners.<\/p>\n<p style=\"text-align: justify;\">According to the survey results, 61% of first-time buyers said interest hikes would hold-up their plans to purchase a home, along with 54% of previous homeowners and 50% of current homeowners.<\/p>\n<p style=\"text-align: justify;\">A similar sentiment was shared among Canadians polled in MNP\u2019s Consumer Debt Index released last month. According to the personal insolvency firm\u2019s survey, four in ten Canadians are afraid they\u2019ll be in financial trouble if interest rates increase.<\/p>\n<p style=\"text-align: justify;\">\u201cThe results highlight just how financially vulnerable Canadians are. Even small interest rate increases result in escalating financial strain and anxiety,\u201d said Grant Bazian, President at MNP LTD, in a press release that accompanied the January report.<\/p>\n<p style=\"text-align: justify;\">In CMHC\u2019s survey, the majority of all future homebuyers also said they\u2019re concerned about the possibility of interest rates rising during the duration of their full amortization period.<\/p>\n<p style=\"text-align: justify;\">Rate hikes aren\u2019t the only thing that will postpone purchasing plans for prospective homebuyers.<\/p>\n<p style=\"text-align: justify;\">In fact, future homebuyers said they are more worried that a spike in home prices will cause a delay in their purchasing plans. Roughly three-quarters of first-time buyers said an increase in home prices will defer their goal to buy a home, along with 73% of previous owners and 63% of current owners.<\/p>\n<p style=\"text-align: justify;\">New mortgage rules are another hurdle that may prevent homebuyers from diving into the market anytime soon.<\/p>\n<p style=\"text-align: justify;\">In the survey, CMHC asked respondents if they were aware of the mortgage qualification changes that were implemented in 2016, including a 10% down payment on a portion of any mortgage CMHC insures over $500,000 and a mandatory stress test for all insured mortgages.<\/p>\n<p style=\"text-align: justify;\">Only 36% of first-time buyers were aware of those rule changes, along with 53% of previous owners and 58% of current owners. Out of these future homebuyers, half of first-time buyers and previous owners and 65% of current owners said the stricter regulations would delay their plans to purchase a home.<\/p>\n<p><a href=\"http:\/\/news.buzzbuzzhome.com\/2018\/02\/interest-hikes-stopping-prospective-homebuyers-market.html\" target=\"_blank\" rel=\"noopener\">Are Interest Hikes Stopping Prospective Homebuyers from Entering the Canadian Market?<\/a> by Kerrisa Wilson | Buzz Buzz Home<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prospective homebuyers say they won\u2019t be jumping into the Canadian housing market anytime soon if interest rates continue to rise. According to the Canada Mortgage and Housing Corporation\u2019s (CMHC) 2018 &hellip; [<a href=\"https:\/\/www.roryc.ca\/blog\/2018\/02\/are-interest-hikes-stopping-prospective-homebuyers\/\">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-8193","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>Are Interest Hikes Stopping Prospective Homebuyers? &#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\/2018\/02\/are-interest-hikes-stopping-prospective-homebuyers\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Are Interest Hikes Stopping Prospective Homebuyers? &#8226; Rory C Real Estate | Oakwyn Realty\" \/>\n<meta name=\"twitter:description\" content=\"Prospective homebuyers say they won\u2019t be jumping into the Canadian housing market anytime soon if interest rates continue to rise. 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