Rate hike ‘may be the last straw’ for some homeowners: mortgage broker

With the most recent hike bringing Canada’s key rates of interest to ranges not seen since 2001, one mortgage dealer is warning that it might be “the last straw” for some householders with variable mortgages.

“We started to hear from people in the last three weeks that they are actively considering selling their homes,” Ron Butler, a mortgage dealer in Ontario instructed CTV News Channel on Wednesday. “They can’t handle the increases.”

The Bank of Canada raised its in a single day charge by 25 foundation factors to 4.75 per cent, the first enhance since pausing hikes in January.

Butler says householders with variable charge mortgages are probably the most uncovered to the most recent hike, however these needing renewals may even really feel the monetary ache.

“All of those people feel the pain,” Butler warned. “The query turns into, are they reaching the finish of their rope?”

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