Canada housing market – what direction is it headed in?
“We get so much support from our real estate agents. Especially speaking about my team, we always want to make sure that we’re giving back to them [and keeping them updated on] rate, the market, new policies, the banks, and staying top of mind so they know who they can rely on,” he said.
Bank of Canada rate hikes in 2022 to date have had a significant impact on variable mortgage rates across the country, with many agents and brokers having reported that variable-rate clients are contemplating locking into a fixed-rate mortgage as a result.
Recent research by Canada Mortgage and Housing Corporation (CMHC), the country’s national housing agency, showed that variable-rate options had surged in popularity throughout last year because of their affordability compared to fixed rates, although it also noted that trend appeared to be coming to an end in the early months of 2022.
Still, even despite another impending hike in September, Oliveira said he was still putting forward the argument to clients that variable options were best suited to the current market environment.
“I’m still recommending the variable,” he said. “I think the discount on the variable right now is good compared to the fixed, and I don’t see the rates going up too much that they’re going to pass the current fixed rate.