TORONTO –
Canadians are scrambling to get mortgage pre-approvals and price holds as economists predict the pandemic-long stretch of low rates of interest will quickly finish.
Estee Zacks says she lately seen a surge in requests for price holds, which freeze mortgage charges for as much as 130 days.
The proprietor of Strategic Mortgage Options Inc. says her shoppers see the holds as a technique to get a leg up on scorching markets like Toronto which can be favouring sellers.
CIBC Capital Markets analyst Benjamin Tal says even a one per cent enhance in mortgage charges from present ranges will value a mean new purchaser $230 or 12 per cent extra in further month-to-month curiosity funds.
BMO Capital Markets senior economist Robert Kavcic says five-year fastened mortgage charges are already creeping larger, however folks with pre-approvals in hand most likely have one other month or two to purchase a house.
He believes the Financial institution of Canada will seemingly hike its charges faster and by greater than most individuals count on, weighing on patrons.
This report by The Canadian Press was first printed Nov. 9, 2021.
