, consumers have switched back to fixed rates, with 95 per cent of rate inquiries to Ratehub.ca in 2023 being for fixed rates,” Laird said.
Meanwhile, fewer people are taking out mortgages as a whole. Total mortgage funds advanced by chartered banks in April checked in at $24.3 billion, down from a peak of $58.4 billion in June 2021 when interest rates were 0.25 per cent, the StatCan data showed. According to The Canadian Mortgage and Housing Corp. , chartered banks extended 67.5 per cent of loans in the market in the third quarter of 2022, down from 72 per cent in the same quarter in 2020.
Canada’s policy interest rate has risen sharply over the past year and now stands at 4.75 per cent. Mortgage rates have followed suit and have reached their highest levels since early 2009, making it challenging for first-time homebuyers to qualify. Additionally, those renewing their mortgages after a five-year term now face higher rates than they did when they initially purchased their homes.