What the Bank of Canada’s full percentage point hike means for the housing market and your mortgage

James Laird, Co-CEO of Toronto-based mortgage brokerage Ratehub.ca, is one of the market watchers who was expecting a 75-point hike. Prior to Wednesday’s announcement, Laird told the Financial Post that a supersized hike to the tune of 75 points or even a full percentage point would do less to impact the housing market than the actual language in the monetary policy report and whether it provides more clarity as to the path of future rate hikes.

“One thing about this upcoming announcement is it’s been … three, four weeks at least that the whole country has been expecting 75 basis points,” Laird said a day before the rate decision. “It’s not going to surprise anyone when it is 75 basis points.

Laird added that he believed Canadian real estate markets have had the time to absorb the news of a colossal hike and does not anticipate any “knee jerk” reactions, assuming the hike is between 75 or 100 points. “It’s all about that forecast going forward as opposed to what specifically they do tomorrow,” Laird said.Article content

Many are hoping the whole market just implodes.

It means we’re heading back to 1980 when for sale signs lined the streets, divorce courts we’re backlogged an you could pick up a house at a 35% discount. Probably more like 50+ today.

I’m starting 2 think BOC Macklin doesn’t understand economics....“proportion of Canadians with a variable rate is minimal in comparison to the majority” really?! So everything you’ve been telling us was a lie? You stated last yr that majority of variable rate shouldn’t b worried

Courtesy of the ignorants in economy TrudeauMustGo and Freeland! That's what happens when the government prints money and spend it uncontrollably, joined to useless taxes; it creates inflation that has to be stopped somehow, obviously hurting the taxpayers! Cdnpoli Pierre4PM

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Hurray ! Make it 5%. +2.5% to go !

Jeez if only we knew what the consequences of out of control government spending and cheap credit was going to be.

It means you're screwed. You will own nothing and like it. God help us all

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