BNN Bloomberg ~ January 24th, 2024
Homeowners are feeling the impact of elevated interest rates, real estate experts say, though the Bank of Canada’s latest rate hold will not raise mortgage payments for those with variable or fixed products.
The Bank of Canada elected to hold its key policy rate at five per cent on Wednesday for a fourth consecutive meeting, the highest level in 22 years.
Daniel Vyner, principal broker at DV Capital, told BNNBloomberg.ca that from the perspective of many mortgage owners, a rate hold is better than a rate hike – but it will still weigh on borrowers.
“Don’t underestimate the impact of a Bank of Canada rate hold in an elevated interest rate environment, especially on those who entered the real estate market and budgeted for homeownership at lower rates and mortgage payments,” he said in a Wednesday interview.
Ratesdotca real estate expert Victor Tran said interest rate changes impact anyone with a lending product that is tied to prime rates, including people with a variable rate mortgage or line of credit.
Since the Bank of Canada held rates on Wednesday, there will be “no impact,” he said.
“The good news is anyone holding a variable rate mortgage will just have their payment remain as is. No increase or decrease,” he told BNNBloomberg.ca on Wednesday.
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