Mortgage Interest Rates are Dropping

Mortgage interest rates, along with the rate at which you must qualify, are dropping. Bond yields are falling. In turn, lenders are offering much better deals on five-year fixed rates, with 2.36 per cent now available, according to RateHub.ca.

This means that buyers can now afford a higher home price for the same monthly mortgage payment. And in response to the falling discounted rates, the Bank of Canada dropped the qualifying rate for the mortgage stress test to 5.19 per cent, giving buyers more purchasing power.

Reference: https://ca.news.yahoo.com/soaring-house-prices-could-return-224950716.html