As we bid farewell to 2023, let’s reflect on the key headlines that shaped the mortgage market throughout the year. From interest rate fluctuations to regulatory developments, here’s a comprehensive recap of the main mortgage market headlines of 2023.
Prime Rate:
For the third consecutive time in December, the Bank of Canada maintained its key interest rate at 5%, indicating that its monetary policy is effectively working to control spending and reduce price pressures. The next rate announcement is January 24, 2024. Read more about this year’s prime rate hikes>>
Update on Prohibition on the Purchase of Residential Property by Non-Canadians:
Effective January 1, 2023, non-residents have been banned from directly or indirectly purchasing residential properties in Canada for two years under the Prohibition on the Purchase of Residential Property by Non-Canadians Act and Regulations. However, this Act raised ambiguity, and there were concerns about its unintended consequences on people who are new to Canada on a work Visa, restricting them from becoming homeowners. Learn how they addressed this concern to provide flexibility to newcomers to Canada>>
Mortgage Rates on The Rise:
Numerous lenders continued to raise their fixed mortgage rates throughout the year. There are talks that rates will fall in 2024, so stay tuned. Here is a look back on rising mortgage rates in 2023>>
The New Canadian Mortgage Charter:
In the Fall Economic Statement (FES), the Liberal government unveiled an initiative it calls the Canadian Mortgage Charter. Find out what new rules it will implement and how it will help you when renewing your mortgage.
The mortgage market is complex. That’s why you have me to help you navigate its many twists and turns. If you have any questions at all, give me a shout.
