Not many people know that if you take out a 25-year mortgage with a 6.37%+ interest rate, in the end you will pay at least double the original price.
Lots of variable-rate mortgages are now around this number, and even fixed rates are not far behind.
Tha Bank of Canada has dramatically increased interest rates since my last post 1 year ago, but real estate prices in Canada are still crazy high:
Source: 1 YORKVILLE AVE
It is hard to believe, but considering that the oil price is over $80 again, there might be more rate hikes in Canada.
As for me, I still enjoy the results of at least one wise financial decision: having a fixed 1.99% mortgage until 2026.
My home-made statistics of real estate availability in Canada show that it keeps improving in 2023 compared to 2021 and 2022.
Over 200k active listings is the highest number so far.
A 5% interest rate on Savings accounts is almost the norm now, many banks are offering 5.5%+ GICs, maybe they will be able to hit 6% eventually.
My only regret is that I bought some more stocks at the beginning of 2023 instead of holding cash.
I’m not convinced that it will be a soft landing and still expecting a hard crash. 🙂