We should be well and deep into the ‘boy who cried wolf’ territory by now.
How long have you heard warnings that interest rates may be going up?
We’ve all become so used to hearing that it’s going to be a big surprise if they do.
The CBC has an article that says interest rates will go up this year and here are 4 ways Canadians should prepare.
#3 is ‘don’t rush to buy a home':
Higher interest rates could also lead to a correction in the housing market.
“The big issue as far as I can see is that people panic and think they have to get into the housing market before interest rates climb. But they have to recognize the overall long-term impact of interest rates actually climbing,” says Laurie Campbell, CEO of Credit Canada Debt Solutions.
Homebuyers who rush out to purchase homes to beat a spike in rates could end up with homes dropping in value.
“I think people have to be vigilant about any big purchases they may be making in the next little while. Housing in particular,” Heath says. “If someone is considering purchasing a house, they have to really look at more normal interest rates during their budgeting.”
Read the full article here.