Some disconcerting survey results from BMO’s First-Time Home Buyer’s Report released today.
One-third of first-time buyers (31 per cent) expect interest rates to stay the same over the next five years.
Even worse, nearly 1 in 4 buyers (24 percent) don’t plan to “stress-test” their mortgage against a higher interest rate to ensure they can afford their home over the long term. The obvious question is, why not?
BMO states that these first-time buyers may need to reconsider their outlook since BMO Economics projects the Bank of Canada will raise its overnight lending rate in the second half of 2014. “It remains vital for Canadians – particularly homeowners – to be prepared for the inevitable rise in interest rates.”
You can read the entire release here