2023-08-28 22:59:08
The leader of the Conservative Party, Pierre Poilievre, suggests that Canada is heading towards a real estate crisis since many new owners will have to renew their mortgage rates in the coming years.
• Read also: Mortgage rates close to 7% scare off increasingly indebted buyers and owners
• Read also: Economy: millennials will struggle in the coming months
• Read also: “We must act more quickly”: the APCHQ calls for more housing in Ottawa
Recall that some new homeowners bought a home in 2020 when mortgage rates were as low as 1.62% for a four-year term.
Now contracts with a five-year term are almost 5.30%.
In an interview with the daily La Presse, the head of the CCP said that when these contracts expire, it will be a disaster worse than the one that unfolded in the United States in 2008.
The experts are rather mixed on this assertion since according to many, the banks will be able to make commitments with these owners.
“Banks have no advantage in putting everyone in default, so banks tend to be conciliatory, but it is sure to remain on a case-by-case basis”, mentions Sébastien McMahon, chief strategist and senior economist, iA Financial Group
The International Monetary Fund had, however, indicated that Canadians were among the most at risk of default.
1693267704
#real #estate #crisis #Canada