It just got a bit tougher to qualify for a home if you have less than 20% down, or would like to qualify for a variable rate.
The Bank of Canada increased it’s benchmark rate to qualify some mortgages to 5.34% from 5.14%. Not a big jump, but it will shave about $10,000 off a $600,000 preapproval.
First time homebuyers will be hit the hardest by the benchmark rate
increase, pushing home ownership in Toronto and Vancouver a little farther away.
Bank of Canada Announcements
This on the heels of the Bank of Canada announcement that left rates status quo for now. Experts are expecting an increase may come as early as this month but more likely at the July announcement.
Variable rates continue to grow in popularity as spreads between fixed and variable rates widen, approaching 1% in some instances.