Canadian Housing Market To Heat Up

The Bank of Canada’s last announcement on its benchmark policy rate has started out a wave of speculation about the possible future trajectory of Canada’s housing market, with the news that it expected rate hike potentially as early as April 2022.

There will be an end to the record-low interest rates that have sparked a madcap housing frenzy throughout much of the past year and a half is now in sight, with all eyes on the Bank’s next announcement (scheduled o December 08) to see if a further revision is looming.

The consequence of rate hikes in 2022 may be to cool down a housing market that the Canada Mortgage and Housing Corporation (CMHC) described as showing signs of overheating after stamping it with its highest possible risk rating at the end of September.