The Canadian Consumer Price Index Reference Paper, published by Statistics Canada, indicates that in 2023, overall mortgage interest costs grew by 28.5% nationally, due to the fact that Canadians who initiated or renewed a mortgage had to do so at progressively higher rates.
Between January 2022 and September 2023, the best interest rate available for a 5-year fixed-rate mortgage rose from 0.85% to almost 6%. Statistics Canada noted that the higher interest rates may also have contributed to an average increase in of 7.7% in rental costs between December 2022 and December 2023. Housing thus remains one of the sectors hit hardest by inflation.
If you’re concerned about your finances because you will have to initiate or renew a mortgage, or because your rent is becoming less affordable, don’t hesitate to talk to your advisor.
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The following sources were used to prepare this article.
Radio-Canada, “La Banque du Canada maintient son taux directeur à 5 %.”
Ratehub, “Best mortgage rates in Canada.”
Statistics Canada, “The Canadian Consumer Price Index Reference Paper”; “Consumer Price Index, April 2023”; “Consumer Price Index, September 2023.”