Rate hikes are cooling Toronto’s real estate market, but some homebuyers feel the chill more than others

In its efforts to quell inflation, the Bank of Canada has moved swiftly to raise interest rates – while stoking demand for housing. But while the move will exclude many potential home buyers from the real estate market, there are some who will not feel the pinch.

– Advertisement –

The central bank has already raised rates twice this year, and is predicted to raise rates again on Wednesday.

The move has had a cooling effect on the GTA housing market, but experts say the market is already largely untouched by homebuyers, who have built-up equity, and Real Estate Investment Trusts. It is the lowest on the real estate ladder. who are being affected the most.

advertisement

Robert Hogg, senior economist at RBC, said this means first-time home buyers, new immigrants and those with low savings can hit the market.

“They will be most affected as they need to borrow more from the lender and are more sensitive to rate hikes,” he said.

– Advertisement –

During the pandemic, the Bank of…

Source