Don’t get used to low interest rates, says mortgage associate
Posted May 31, 2021 11:13 am.
This article is more than 5 years old.
CALGARY – Canadian home buyers took advantage of pandemic interest rates and cashed in to get their homes.
Now with mortgage deferrals starting to lift, and more Canadians getting back to work, a stress test may be coming for first-time buyers to see if they can financially handle interest rate inflation.
Tanya Wttewaall is a mortgage associate and she says don’t get too comfortable with these low-interest rates.
“It’s great that it allowed first-time homebuyers to enter the market but we might be getting too comfortable with expecting low rates to remind this low.”
She says this could affect first-time home buyers the most.
“They don’t have the built-in equity that most homeowning people enjoy right now so first-time homebuyers are the ones who usually put down a 20 per cent down payment.”
First-time buyers can still buy with low-interest rates, but the stress test is made to prepare Canadian home buyers to prepare for rising interest rates.
