While headlines may be negative, average home prices in Ontario are approximately $100,000 lower than their 2021 peak. This lower purchase price can offset higher interest rates by reducing the required down payment and total mortgage amount.
Geopolitical tensions, such as those in the Strait of Hormuz, can cause oil supply issues and price spikes. This creates inflationary pressure, which the Bank of Canada monitors closely when making interest rate decisions.
You should not simply sign the renewal papers sent by your bank. Instead, treat the renewal as an opportunity to restructure your debt and proactively develop a strategy to manage your monthly payments.
