According to RBC, for every 1% increase in the rate, this will mean $526 in additional monthly mortgage payments for Vancouver buyers, $483 for Toronto buyers, $271 for Ontario buyers, and $243 for Montreal buyers.
“For households earning the median income, for example, the rise in fixed mortgage rates will shrink the maximum purchase budget by roughly 15%.
RBC forecasts home resales across Canada will begin a notable falling trend, dropping by 13% to 578,000 in 2022, and another 14% to 500,000 in 2023.
After the spectacular rally of the past year and a half, prices are anticipated to peak this spring, before weakening modestly for the remainder of 2022.
We expect downward price pressure to be more intense in Vancouver, Toronto, and other pricey markets,” continues the forecast.