Canadian mortgage rates are beginning to inch higher for the first time since before the COVID-19 crisis, but with home loans still languishing around historically low levels the modest hike is unlikely to slow the red-hot housing market.
Buyers are spending more money on home purchases in several major Canadian cities, even as the COVID-19 pandemic causes layoffs and income reductions across the country.
Most homeowners who sought deferrals for mortgages last year have seen their deferral periods end, but the Canada Mortgage and Housing Corp. says the risk of these borrowers falling into arrears could re-emerge.
Canadians didn't let COVID-19 or a lack of housing supply stop them from flocking to the real estate market in January as they snatched up a record number of homes and shelled out more than they had in previous years.
