
Investors made up 20 to 30% of homeowners in some provinces: Statistics Canada
New Statistics Canada data shows investors made up almost one third of homeowners in some provinces in 2020.
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New Statistics Canada data shows investors made up almost one third of homeowners in some provinces in 2020.
A gauge of US services snapped back in January after an end-of-2022 slump, suggesting a resurgence in consumer demand that leans against concerns of an imminent economic slowdown.
Sales in the Toronto housing market ground to the slowest pace since the first month of the pandemic as buyers contend with some of the highest borrowing costs they’ve seen in 15 years.
The Bank of England’s top two policy makers signaled that the most aggressive tightening cycle in three decades may be nearing an end.
China’s real estate market is in an unresolved crisis and Beijing needs to do more to support the sector, the International Monetary Fund said, earning a sharp rebuke from Beijing.
Nov 25, 2022
BNN Bloomberg
,A homebuyer in 2022 could be paying around 250 per cent more in interest during the first year of their mortgage when compared to a buyer in 2021, according to an analysis conducted by Ratehub.ca.
In October 2021, a homebuyer would have paid $12,310 in interest during the first year of their mortgage, according to an emailed statement from Ratehub.ca. In this scenario, the buyer has a $600,000 mortgage with a five-year fixed mortgage rate of 2.09 per cent and an amortization period of 25 years.
According to the statement, a buyer in October 2022 would pay $30,819 in interest during the first year of their mortgage. This scenario assumes a $600,000 mortgage with a five-year fixed rate of 5.24 per cent and an amortization period of 25 years.
“A homebuyer will now be paying 250 per cent more in interest in the first year of their mortgage alone. It is unsurprising that this has turned off many potential homebuyers in 2022,” James Laird, the co-chief executive officer of Ratehub.ca and president of CanWise Mortgage Lender, said in the emailed statement.
The calculations were based on the best five-year fixed mortgage rate available to homebuyers at each respective time, according to the statement. Additionally, the analysis was based on an uninsurable rate, meaning homebuyers would be getting this rate or better for each scenario.
“I have seen year-over-year change in mortgage interest costs quoted as between 10 to 20 per cent. I don’t know how these calculations are being done, but I know with certainty that both fixed and variable rates have more than doubled over the past year,” Laird said.
According to the Canadian Real Estate Association, the average home price across Canada was $644,643 in October of 2022, representing a 9.9 per cent decline from the previous year.
The conventional mortgage lending rate in Canada for a five-year term was 5.75 per cent in October, according to Canada Mortgage and Housing Corporation.
According to RATESDOTCA, the current top rates in Ontario for a five-year variable and fixed rate mortgage are 4.8 per cent and 4.89 per cent, respectively.