Canadian Mortgage Renewals Were At a High Before Rate Increase

Canadians took a proactive approach in ensuring they got the best mortgage rates. from Nesto, mortgage renewals were at an all-time high prior to this week’s dramatic Bank of Canada rate hike. Renewals were at their highest levels in June 2022 since January 2021 — an indication that people want to secure their low rate before more rate hikes happen.

“Fixed rates are due for continual increases, while variable rates will take a considerably longer time to get to such high levels,” reads the report. “Yes, both are going up, but they are not moving at the same speed. For this reason, no matter the province you reside, variable rates are still a great option to keep mortgage payments low.”

Nesto’s last report highlighted that, while renewals were still higher than they were at the start of 2022, they did fall slightly in May 2022 among users. Looking at June 2022, comparatively, renewals again took the lead, and this time, had one of the most major jumps since 2021. With renewals at 36.11%, this marked a 6% hike from their previous documented high in April of this year.

As Nesto reported last month, there was an increase of users “just looking,” sitting at 55%, and a decrease of users “ready to buy,” sitting at 45%. The situation continued in June 2022. “Since home prices are still relatively high, and mortgage interest rates are at the highest point since pre-pandemic, it makes sense to see that ‘just looking’ continued to have a majority stake at 56% of Nesto users, compared to 44% who were ‘ready to buy’,” reads the report.

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