Share of mortgages with variable interest rates rose above 50%
The discount on variable rate mortgages reached 118.5 per cent in early 2022, as variables made up 55 per cent of the share of mortgages in that period.
By comparison, in 2020 variables were trading at a 89.5 per cent premium and made up only 7.4 per cent of the new mortgage share. The Bank of Canada hiked its benchmark policy rate by 25 basis points in March, followed by two consecutive 50 bps hikes in April and June to bring the rate to 1.5 per cent.Article content
The CMHC report also found that residential mortgage debt continued to ramp up in 2021, rising nine per cent compared to the previous year, as a result of strong activity in the housing market and record-low interest rates.
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