Last month, the Bank of Canada raised its interest rate for the fifth time since mid 2017. Many of our young Canadians have concerns about how high our current interest rates are. This is immensely concerning for me, as even though our rates are higher than over the laster few years, they are still historically LOW!
Below is a graph of the average 5 year mortgage rates.
Although the graph is missing the last couple of years, you can easily see that even with the most recent raise, the rates are still very low.
I may not be very popular with this statement, but I'm happy with the decisions to add the stress test and increased down payment ( for the over $500,000 point). I'm also okay with the small interest rate raises.
Yes, they may delay or lower your buying power, but if they help prevent a housing crash like in the States in '08, my vote is behind it!