Leah Zlatkin quoted in the Toronto Star: ‘This Will Remove Buyers From the Market’: Higher Interest Rates on Wednesday Will Help Tame Frothy Housing Prices, Experts Say’

‘This will remove buyers from the market’: Higher interest rates on Wednesday will help tame frothy housing prices, experts say

Leah Zlatkin, a mortgage broker with lowestrates.ca, said the recent rate hikes represent a “turning point” for those prospective buyers.

Mortgage rates are now high enough that many potential buyers will have to qualify at percentages above the stress test, which is presently 5.25 per cent or two per cent above the offered mortgage rate, whichever is higher, Zlatkin said.

“Many homebuyers are not aware of this nuance and it would affect their affordability even if home prices were to slow down over the next year,” Zlatkin said.