24 July 2018

Yes, almost half of Canadian mortgage holders will face new rates this year during renewal, but those who have the most popular mortgage product – the five-year fixed rate – will see almost the same rates as in 2013.

Last month, the discounted five-year fixed rate was nearly 3.25%, which is only 0.30% higher than 2.94% seen in June 2013. In case of other months, the five-year change is even smaller.

According to the Bank of Canada, although wage growth has improved, slower growth of total hours worked and the new mortgage rules may affect the consumer spending.

The stricter rules, implemented in January, scared many first-time homebuyers out of the housing market, but also slowed down the national household debt growth.