The article notes that while we may not feel it as much in today’s economy, there are numerous factors that are making it much more difficult for Canadians to purchase a quality home.
The article begins by taking a look at rising mortgage interest rates in Canada. It notes that while these rates have declined in recent months, they still remain higher than they were a few years ago. This means that Canadians are paying more money in interest payments and will have to pay even more if rates increase again. This can be an incredibly frustrating situation for those who are already struggling to make ends meet.
Next, the article mentions how the availability of credit has decreased significantly over the past few years. Banks and other lending institutions have become much more stringent in their lending practices, as they are looking to reduce their exposure to risk. This means that potential homeowners may not be able to get the loan they need in order to purchase a home, even if they have a solid credit score.
In addition, the article highlights how the cost of a house has increased dramatically over the past few years. Property taxes, insurance, and maintenance costs have all gone up, making it even more expensive for Canadians to get into the housing market. Furthermore, these costs are likely to only continue to rise, putting even more pressure on Canadians trying to buy a home.
Finally, the article talks about the difficulty of getting approved for mortgages these days. Mortgage brokers and lenders have become increasingly strict in their assessment of applications, meaning that potential buyers may get rejected even if they have a good credit score or income level. Furthermore, banks have become increasingly reliant on automated decision-making systems, which don’t always take into account individual circumstances.
Overall, the article paints a clear picture of how the Canadian housing market has become much harder for people to buy into. Rising interest rates, a lack of available credit, increasing prices, and stricter mortgage approval policies have all contributed to this phenomenon. For those looking to purchase a home, these are all factors that need to be taken into consideration. The article ultimately concludes that, despite the challenges, there are still options available for people that want to purchase a home, but they need to be aware of the obstacles they may face.
This article was contributed on Oct 19, 2023
