Just a few months ago, a regular national discussion was about house prices and a lack of affordability. No longer. With house, townhouse and condominium prices cresting, imminent data may likely confirm serious price declines.
Mortgage carrying costs are rising as interest rates and debt servicing costs climb. The mortgage qualifying threshold is receding rapidly for many.
Interest rates on five-year fixed mortgages have already doubled, climbing to over five per cent. Already, a rising number of people can’t qualify for a bank mortgage. Rising interest rates hamper house-buying applicants, particularly those with erratic or short employment history or who have too little for a down payment. More house buyers will have to rely on mortgage insurance or assistance underwritten by Canada Mortgage and Housing Corp. (CMHC, a Crown corporation) to get their…
