Edmonton home buyers and sellers have recently been confronted with the new reality of higher mortgage interest rates after many years of historic lows. When the federal government instituted the mortgage stress test last year, I predicted that mortgage rates would be going up. And in a hurry. They have increased even higher than the 4.5% that was set with the stress test. So far, it looks like my predictions is coming to fruition.
Now having said that, Canadians have enjoyed very low interest rates for many years now. This has allowed people to borrow higher amounts for the same payment that they would be paying for less money back in the early 2000's.
So what does this mean for somebody who is wanting to buy an Edmonton home this summer?