Just The Facts: Housing Agency Rings The Alarm Bells On Mortgage Renewal
Justin Trudeau’s inflation crisis has already doubled mortgage payments and down payments for Canadians, but the Canada Mortgage and Housing Corporation (CMHC) says the pain is only going to increase.
Years of Trudeau’s inflationary debt and taxes led to Canada’s inflation rate increasing to 8.1% and the fastest increase in interest rates in Canadian history, with the Bank of Canada warning that they may increase even further. These hikes are now set to hit countless Canadians facing mortgage renewals when they are already facing historically high debt and a cost-of-living crisis.
Over the next two years, 45% of all outstanding mortgages representing $675 billion will be up for renewal. These represent homes bought at Canadian record-high prices at record-low interest rates.
These homeowners could see a 30-40% uptick from the rate they received just a few years ago. For those who bought a $500,000 home with a five-year fixed-rate term and a 25-year amortization, this will mean an increased payment of nearly $1,000 dollars per month.
In some Canadian cities, however, the benchmark home price is much more than $500,000 dollars. The average home price in Vancouver in 2019 was $896,000. A homeowner who bought a house at that price can expect to pay over $1,600 more. In Toronto, the average price was $784,300 and those who have to renew in 2024 will be looking at increases of $1,420 a month.
This isn’t a shock Canadians can afford, and yet the Prime Minister continues with his inflationary taxes and deficit spending.
Only Conservatives will axe the tax and waste to reduce inflation, bring interest rates down, and bring home lower prices for Canadians.