MONTREAL, April 06, 2023 (GLOBE NEWSWIRE) -- nesto, a leading Canadian mortgage lender, officially released its quarterly report today, Making Sense of the Housing Market in a Fluctuating Economy. The whitepaper, authored by Francis Gosselin, nesto’s consulting economist, examines how factors such as inflation, interest rates, and housing supply affect this year’s market.
The report forecasts that the Bank of Canada will likely pause rate increases through the spring, but homebuyers should remain alert. They should stop waiting for prices to fall further; if they can, they should act now before competition grows or rates hike again. As for homeowners, Mr. Gosselin predicts it won’t just be variable holders feeling the crunch this time, as it was in 2022 when rates increased, and mortgage payments went up. He believes fixed rate holders coming up for renewal in 2023-2024 will feel an impact due to higher interest rates than locked in on their first term.
For instance: If a homeowner secured their fixed-rate, 5-year term on a $400k mortgage in 2018 at 3.69%, their monthly payment monthly was $2,037; however, that same homeowner renewing in 2023– even with nesto’s current low rate of 4.69% – would be paying $2,256, or $219 more per month, representing an increase of 9.7%.
“Though market conditions still seem suboptimal to many, it is our view that home prices have already bottomed out. While current owners with fixed-rate mortgages may feel the impact of the new policy rate when renewing their mortgages, new buyers and variable-rate holders can take advantage of the upcoming easing to secure competitive rates on mortgages for homes that will increase in value over the foreseeable future,” says economist Francis Gosselin (Ph.D., ASC).
nesto’s report will be helpful to anyone looking to buy a property or renew their mortgage in today’s market or those simply curious about what is happening with real estate across Canada.
About nesto: Unlike other mortgage brokers or banks in Canada, nesto is Canada’s first digital mortgage platform, that has core human expertise and a transparent, convenient, technology-first property financing experience—simplified from start to finish. Visit nesto.ca for more information.
Media contact:
Alivia Massimillo
alivia@nesto.ca
516-398-2513
