What's Happening with Rates?

The new Prime rate is now… (checks notes) 5.45%.  Variable rates are approximately 5.00% and fixed rates are approximately 5.29%.  

Fixed rates did not move as a result of the Bank’s announcement.  It is only variable rates that are affected.  

Many borrowers are now qualifying for mortgages with a stress test rate of 7.00% (the contract rate plus 2.00%).  Canadians have not qualified at rates this high since around 2001.  The average Toronto home at that time was about $266K and the average full-time income was $51K.  Ah, the days when the average income could purchase the average home.