Global economic uncertainty means that the Canadian economy will still benefit from the boost that low borrowing costs can provide, according to the Bank of Canada’s Governor.
Higher interest rates and new lending rules have curbed Canadians’ appetite for taking on mortgage debt, a new report suggests.
There have been plenty of deterrents for Canadian first-time home buyers this year, from stricter mortgage qualification rules rolled out in January to three interest rates hikes throughout the year. But according to a new survey, the majority haven’t given up on the dream of homeownership.
The Canadian housing market hasn’t provided much of a boost to the country’s economy in 2018 and, according to one bank, it’s a trend that will likely continue in the new year.
Housing starts have been slowing in recent months, which CIBC economist Royce Mendes believes is a sign that the market will exert a drag on the Canadian economy in 2019.