According to the first BMO Housing Confidence Report released yesterday, nearly half of Canadian homeowners (46%) intend to buy a property in the next five years, signalling a high level of confidence in Canada’s housing market.
A modest increase in prices, however, would derail plans to buy; meanwhile, three-quarters (72%) of households would feel a significant strain if they were to experience a modest increase in monthly mortgage payments, such as one caused by an increase in interest rates.
The report reflects the sentiment of Canadian homeowners after the new mortgage regulations introduced by the Federal Government came into effect in July 2012.
“The fact that 46% of Canadian homeowners intend to buy a property in the next five years implies that Canadians are feeling confident in the current real estate market environment,” said Martin Nel, Vice President of Lending and Investments, BMO. “However, that certainty is tempered, given the adverse effect moderate increases in home prices and mortgage costs would have on the average homeowner.”
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