MONTREAL, March 08, 2023 (GLOBE NEWSWIRE) -- The Bank of Canada announced today that the prime interest rate would not change this month. This is excellent news for potential homeowners looking to enter the market and purchase this spring season.
Research conducted by nesto shows 70 percent of prospective homebuyers are just exploring, while 30 percent are actively seeking to enter the market. This marks a complete shift from the high of mortgage season last year when 49 percent of buyers were ready to buy. This shows significantly less competition in the housing market among buyers now. Plus, home prices are declining in most areas within Canada and by up to 15% lower in some Ontarian cities. The result? A more balanced market than we saw throughout 2022.
“This data shows that early spring is likely the best time to get a jump on homebuying versus waiting later in the season when more Canadians will be looking to enter the market. However, it’s important to remember that we have not yet seen the full impact of the extraordinary rate increase cycle that we are hopefully at the tail end of. Variable rate borrowers have felt it and have been forced to tighten their discretionary spending. But millions of Canadians with fixed-rate mortgages coming due for renewal in 2023 and 2024 have yet to feel the same spending pressures” Chase Belair, Co-Founder, and Principal Broker of nesto, continues: “With this pause, there will be a relief of stress and anxiety from the Canadians who have been parked on the sidelines, eager to get into the home market. Not just investors, but the majority are Canadians who just want a place to call their own home.”
According to Belair, it’s imperative for borrowers and would-be borrowers to understand the value difference between a 5-year fixed, a 5-year variable, and a shorter-term fixed rate in this environment. nesto can help facilitate the right move for them.
Unlike most lenders, nesto offers a fast, transparent, and commission-free mortgage lending experience trusted by over 210,000 Canadians since its inception in 2018. Whether it’s providing a 150-day rate lock for mortgage renewals to offering a $500 low rate guarantee, nesto is on the bright side of mortgages and on a mission to make mortgages more accessible to more Canadians.
About nesto: Unlike other mortgage brokers or banks in Canada, nesto is Canada’s first digital mortgage lending platform with core human expertise and a transparent, convenient, technology-first property financing experience—simplified from start to finish. Visit nesto.ca for more information.