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Welcome to this overview of mortgage rates in Canada and how the changes in inflation and the economy will either positively or negatively impact them. This will also go over Canadians current mortgage rates and their struggles.

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This video gives an overview of what a mortgage is and when you would need them. It describes the steps and processes are of getting a mortgage and how banks may vary in this process. It briefly goes over how payments for a mortgage may look and different rate types.

This video was selected due to its simplistic explanation while keeping it short and direct. I found the explanation of different types of mortgage rates helpful as I did not know there were different kinds let alone how they work. It also provided added information on how you could gain a profit from a house and your mortgage in a short period of time if someone will buy the house for more than your mortgage.

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Explaining Mortgage | by Wall Street Survivor

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This video gives an in-depth look into mortgage basics specifically in Canada. Unlike the previous video, this goes over mortgage insurance and when it is required, Where insurance is provided in Canada, Interest rates and how they are affected by either fixed or variable rates. It goes into detail about the differences and the pros and cons of each rate type. It goes through the differences between terms and amortization. There is an explanation of accelerated payments and why you should choose them. Describes types of pre-approval processes. Also goes over the best places to get mortgages.

This video was selected due to its layout of information and the detail it provides specifically for Canadian home buyers. I learned a lot about what accelerated payments are and how they benefit you due to the fact they save you money and help you budget better.

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This video goes over interest rates only and how they affect your monthly payments and how much you will be paying on top of your mortgage by the time you finish your payments. It goes over the specific difference between five, four, and three percents of interest on how much you spend in total.

This video is very important to understanding the concepts interest rates and how such a small increase in interest can cost you a vastly difference in the long term on money you have spent. It shows the importance of needing to be able to get a low interest rate as well. I before did not know that your monthly payment amount was comprised of your principal and interest amount and how each month one them rises the exact amount the other lowers keeping each month consistent in payments. The more years into your mortgage you are the less interest you actually pay as long as interest rates to vary to much. This may show incentive on a variable rate versus the stability of fixed rate. How inflation plays a roll in these rates will be show in the following.

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How Do Interest Rates Affect Your Mortgage and Monthly Payment? Interest Rates Explained

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This video explains what inflation is and how it works. It goes over different ways that inflation affects the economy and how the population spends and saves money. It then goes over interest rates and what their purpose is in regard to people borrowing and spending money and again its effects on the economy. Then it explains the butterfly effect of how raising interest rates can either work to lower inflation or increase it. It shows a direct correlation between inflation highs and lows with interest rates highs and lows.

The reason I select this video is that interest rates are a very big part of mortgage rates and what kind of affordability your mortgage will have. Since we are also trying to examine how inflation and the state of the economy affect mortgage rates it is important to understand the correlation between them and interest rates. When inflation is high, interest rates may be risen to match that in attempts to lower it. At that point, the economy is in a weaker state as people are spending less and also buying houses less. The opposite is true for low points of inflation where interest rates are also lower.

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This website is on the Bank of Canada's current key policy rate. This key policy rate directly affects the interest rates banks provide on loans. It explains why this rate is needed to be increased to lower consumption thus lowering inflation. It explains how in the last 12 months the policy rate has gone from 0.25% to 4.5%. It also states how inflation was at a 30-year high of 8.1%.

This website is important to understand why interest rates increase with inflation and how the state of the economy will either make you have affordable interest rates or not. It also explained that this brings higher variable and adjustable mortgage rates with it so each year in our current state mortgage rates are skyrocketing.

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Latest Update: April 13, 2022

Bank of Canada Announces Historic Rate Hike of 50 Basis Points

The Bank of Canada increased its key interest rate by 50 basis points on April 13, 2022, bringing the central bank's policy rate to 1.00%. This is the largest individual rate hike since 2000, and comes about amid soaring Canadian housing prices and inflation.

Highlights from the Bank of Canada's April 13, 2022 meeting include:

The Target Overnight Rate will increase by 0.50 percentage points to 1.00%.

CPI inflation of 5.7% is at a 30-year high and at a level not seen since 1991. It's expected to further increase to around 6%, and it currently remains well above the Bank of Canada's 2% target.

The spotlight now turns to the Bank of Canada's balance sheet, which currently stands at 19% of Canada's gross domestic product (GDP).

Quantitative tightening (QT) is set to begin on April 25, 2022. This will gradually reduce the Bank of Canada's balance sheet.

The 50 basis-point rate hike by the Bank of Canada revealed the central bank's hawkish side as it aims to control rising inflation. This decision was backed by confidence in the economy's recovery, evident through strong job growth as the unemployment rate fell to a record-low of 5.3% in March 2022. It's also spurred on by the hawks down south, with the Federal Reserve set for a 50 bps rate hike at the FOMC's next meeting on May 4, 2022.

Looking forward, another rate hike is all but certain at the Bank of Canada's next meeting. The next interest rate announcement will be on June 1, 2022, at 10 a.m. EST.

Best Mortgage Rates in Canada

Refinance: Changing your mortgage amount

Renew: Mortgage from a new lender at the end of your mortgage term

* Terms and conditions apply. Lowest rates are for high-ratio mortgages (LTV > 80%).

Bank of Canada Meeting Schedule for 2022

How the Bank of Canada Determines Its Target Overnight Rate

The Bank of Canada makes its decisions based on the growth of the Consumer Price Index (CPI) from Statistics Canada. This is calculated from the price of a monthly "basket" of goods and services typically used by Canadians. It represents a broad picture of consumer spending across Canada.

Using its monetary policy tools, the Bank of Canada aims to maintain inflation, as calculated by changes in the CPI, within a certain range. Introduced in 1991, the inflation-control target sets a range of 1% - 3% as the ideal range for annual inflation, with the midpoint of 2% being the common target rate. This range is reviewed regularly with the latest review being in October 2016.

The Bank of Canada reviews its benchmark interest rate eight times a year and considers both local and international, current and potential influences in their review. Although the Bank of Canada operates independently of the government, it is ultimately responsible to Parliament through the Minister of Finance.

How the Overnight Rate Works

Think of the banks as a group of friends. The banks don't like to hold cash and like to lend out their money whenever they can. Sometimes, Bank A might have a lot of cash on its hands while Bank B might have less. Since they're friends, Bank A is more than happy to lend money to Bank B. But they're banks, so they don't want to lend their money out for free. So they charge an interest rate.

Everyday, the banks come together and make offers to borrow and lend money. The rate that they settle on is called the "overnight rate" because it's the interest rate for borrowing cash "overnight". The Bank of Canada is the "mom" of the group. The Bank of Canada has a "target overnight rate" and tries to keep the overnight rate close to the target. If the rate gets too low because there's too much money, the banks can lend their money to the Bank of Canada instead. If the rate gets too high because there's a shortage of money, the Bank of Canada acts as a "lender of last resort" and will lend out money.

Bank of Canada Overnight Rate Changes Since 2010

Bank of Canada Overnight Rate Forecast

Bank of Canada Rate Forecast for 2021: Stable at 0.25%

Despite rising asset and commodity prices, the Bank of Canada has signalled that their Target Overnight Rate will remain stable at 0.25% for 2021. We expect to BoC to maintain their commitment and do not expect any rate changes by the end of 2021.

Our rationale is based on the uncertainty of recovery from COVID-19 as well as the policy and political motivations of the Bank of Canada. While Canada's economy showed a higher-than-expected rebound in Q1 2021, new lockdowns and the high likelihood of the spread of new variants have put a pause on further growth. Slow vaccine rollout campaigns are also likely to prevent a full recovery by the start of Q4 2021. We expect these factors will push the Bank of Canada to maintain a loose monetary policy in order to continue to support Canada's recovery from COVID-19.

From a policy and political side, the new Federal 2021 budget expects a budget deficit of $154.7 billion CAD for the next year and elevated deficits for the years after. The Bank of Canada already owns more than 40% of total federal government debt and we expect them to continue to help to monetize federal debt as well as assist in Canada's economic growth.

Bank of Canada Rate Forecast for 2022: Rising to 0.50%

Due to rising asset and commodity prices as well as expectations for a better-than-expected economic growth in 2021 and 2022, we expect the Bank of Canada's target overnight rate to rise to 0.5% by the end of 2022.

Record-breaking activity in Canada's housing markets and rising commodity prices are likely to put upward pressure on CPI measures in 2022. CPI is already expected to exceed 2% in 2021, and we expect that the Bank of Canada will find that the rise in the rate of inflation is not temporary. Consequently, we predict that the BoC will raise their target overnight rate to a minimum of 0.50% by the end of 2022.

At this point in time, we do not expect the target overnight rate to exceed 0.75% in 2022. The US Federal Reserve has signalled that it will maintain its overnight rate at the zero bound until 2023, putting pressure on the BoC to maintain a similar stance. At the same time, both the Federal Reserve and the Bank of Canada have other tools to tighten monetary policy including the reduction of their QE programs. We expect the BoC to slowly reduce its debt purchase program before it takes further actions to raise its policy interest rate.

Why Not Negative Rates?

The zero lower bound is no longer the strict rule that it once was - the European Central Bank (ECB), the Bank of Japan (BOJ), and central banks of Denmark, Sweden, and Switzerland have all experimented with breaking the zero barrier. The ECB and BOJ have both used negative deposit rates since 2014 and 2016 respectively, and the BOJ has had decades of experience with near-zero rates. Why doesn't the Bank of Canada do the same with negative rates?

Negative rates have significant implications for the financial sector as banks can't offload the costs of the negative rate onto their clients (imagine how popular a negative-rate savings account would be). According to a BoC paper from 2015, this can significantly compress margins for banks and other financial institutions as well as create market distortions. Due to these reasons and other effects of a negative interest rate policy, the Governor of the Bank of Canada, Tiff Macklem, has announced that he does not see negative interest rates as a viable option for the BoC.

Bank of Canada Interest Rate Forecast Chart

Bank of Canada Interest Rate Forecast for the Next 5 Years

Above, we have predicted that the Bank of Canada's Target Overnight Rate will remain at 0.25% for 2021 and rise to 0.50% in 2022. From 2023 onwards, the outlook is less certain and highly dependent on global macroeconomic factors. CPI inflation is expected to surpass the BoC's target of 2% in 2021 and stabilize at 2% in 2022 and beyond. However, it is likely that increased global liquidity and fiscal spending will continue to put upward pressure on prices and drive inflation upwards. Conventionally, this would prompt the BoC to continue to raise rates.

However, the massive amounts of debt raised by both federal and provincial Canadian governments will pose a barrier to any further increases in interest rates. The Federal government alone is expected to borrow $713 billion CAD in 2020, more than double the amount raised in 2019. The 2021 Federal Budget shows a commitment to further deficit spending with a deficit of $154.7 billion this year. While much of Canada's debt is already owned by the Bank of Canada, it would be counter-productive to the aims of Canada's government to increase rates and tighten monetary policy while the government is deficit-spending to boost the economy.

The Bank of Canada and Mortgage Rates

Through the key policy rate and its other monetary policy tools, the Bank of Canada influences the interest rate for all borrowing and lending transactions in Canada. For example, changes in the key policy rate usually lead to changes in bank Prime rates. Subsequently, the key policy rate has significant influence on variable mortgage rates that are based on a lender's Prime rate.

Changes in the key policy rate and monetary policy can also affect fixed mortgage rates. Fixed mortgage rates usually follow the yields of Government of Canada 5-Year bonds. A shift in monetary policy can lead to changes in the bond yields, which will then lead to changes in fixed mortgage rates.

Best Mortgage Rates in Canada

Refinance: Changing your mortgage amount

Renew: Mortgage from a new lender at the end of your mortgage term

* Terms and conditions apply. Lowest rates are for high-ratio mortgages (LTV > 80%).

Canada Mortgage Rate Forecast

Variable Rate Forecast

We expect variable mortgage rates to remain stable until 2021 with a rate hike in the second half of 2022. Variable mortgage rates are based on the Prime rate, which follows to the Bank of Canada target overnight rate. Our projections show that the BoC is unlikely to deviate from its current overnight rate of 0.25%. Consequently, Prime rates and variable mortgage rates are likely to also remain stable.

Increased competition in the mortgage sector may lead to discounts for new mortgages or refinances, but variable mortgage rates are already near historical lows and it is unlikely that rates will go down further.

Fixed Rate Forecast

As of April 2021, fixed mortgage rates are already rising to take into account higher inflation expectations and 5-year bond yields. We expect them to remain at current levels until the second-half of 2021 before rising further to match rising inflation expectations.

Bank of Canada Overnight Rate History

The Beginnings of Canada's Central Bank in 1935

The Bank of Canada was created as part of the Bank of Canada Act in 1935. It was recommended by the Royal Commission in response to the economic conditions of the Great Depression. In March 1935, the Bank of Canada was opened to the public as a private institution with shares sold to public investors. It was quickly nationalized as a public institution by an amendment to the Bank of Canada Act in 1938.

1935 - 1945: The Great Depression and World War II

The Bank of Canada rate (not officially the target overnight rate until much later in the century) started at 2.5% in 1935 and ended at 1.5% in 1945. The economy strengthened during the war as Canada played a vital role in supplying natural and manufactured resources to the Allies. There was also increased employment, especially of women. The decrease in the Bank of Canada rate encouraged people and businesses to borrow money to invest in new manufacturing plants and housing.

1935 - 1955: The Post-War Period

After World War II, the Bank of Canada rate did not rise until October 1955, when it was changed to 2.0%. This low-interest rate environment promoted investment in new infrastructure, manufacturing, housing and consumer goods.

1977 - 1991: Stagflation

After the upward change in 1955, the Bank of Canada rate continued to rise slowly throughout the 1960s and early 1970s. In October 1978, the benchmark rate hit double digits for the first time at 10.25%. This was due in part to the global oil crisis and the OPEC oil embargo. With record-high prices for oil in August 1980 that continued into 1981, the Bank of Canada rate hit an all-time high of 20.03% in August 1981. The lowest rate reached during this period was 7.14% (March 1987).

1991 - 2008: Economic Recovery

After the recession of the 1980s, the Bank of Canada rate between 1991 - 2009 generally went downwards with only a few exceptions. The inflation-target rate was introduced at the beginning of this period.

2009 - 2017: The Great Financial Crisis

In March 2009, the BOC rate dipped below 1% for the first time to 0.5% in response to the Great Financial Crisis. Despite a minor recovery, in 2014, oil prices dropped a staggering 60%, causing a recession in Canada's oil-driven export economy. The Bank of Canada rate then dropped from 1.25% to 0.75% in 2015.

2018-Present: Low Inflation and COVID-19

Despite widespread economic growth, 2018 and 2019 were marked by continued low inflation, preventing the Bank of Canada from raising rates any higher than 1.75%. This was quickly reversed with the impact of COVID-19 with a two 50 basis point drops in March 2020. The Bank of Canada rate now lies near its lower limit at 0.25% and is unlikely to be raised anytime soon due to the deflationary impact of reduced consumer spending and distressed economy.

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Bank of Canada Interest Rate 1935-2022 & 2022 Forecast | WOWA.ca

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The Bank of Canada increased its key interest rate by 50 basis points on April 13, 2022, bringing the central bank's policy rate to 1.00%. This is the largest individual rate hike since 2000, and comes about amid soaring Canadian housing prices and inflation.

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This website goes over in more detail how inflation affects mortgage rates. It explains again what inflation is but also how the pandemic contributed to the increase in its current levels. It explains how the policy rate does not set interest rates but banks tend to increase interest rates to keep up with the overnight interest rate banks have on loans. It explains how certain bonds are backed by mortgages and how interest rates rising increases their attractiveness to buyers.

This information is necessary to understand the full circle impacts of inflation, the economy and interest rates. This may give some understanding to buyers on why prices are the way they are and maybe an eye to how background investing works to determine the amount they will be paying. Similar situations with bonds and mortgages almost single-handedly lead to the recession experienced in 2008.

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Congratulations! Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage.

If a sign-in page does not automatically pop up in a new tab, click here

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How Does Inflation Affect Mortgage Rates?

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Congratulations! Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage. If a sign-in page does not automatically pop up in a new tab, click here

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This site describes differences between fixed and variable rates and when in a high inflation you may want to chose one or the other. It also gives suggestion on which to potentially pick in 2023.

It is important to know that in times of high inflation if you previously had a variable rate you will be paying a lot more money and will be affected by increased interest rates than a fixed mortgage unless the fixed rated mortgage term ends during this higher period. When in high interest rate levels it may be better to get a variable rate because when rates eventually lower which over long term they do which is why variable tends to save more money. Where as in low rate levels you may wanna choose a fixed rate which may keep your interest rates lower through this peaks. Thus leaving you with more stability.

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This website takes a look at current prices for houses and the current interest rates and lets buyers know whether now is the time to buy a house. It also provides a slight forecast into the future and if it may be better to hold out.

This is important as knowing when to buy may save you hundreds of thousands of dollars. Currently prices on house are down to the lower buying but interest rates are higher so you may still end up paying more then if your just held out for a lower interest period. It is important to be aware of our current economic situation.

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Many prospective first-time homebuyers have likely been waiting patiently on the sidelines for a chance to get into the Canadian housing market.

As 2023 approaches, a window may be opening for some of them to get that first piece of real estate, whether it's a condo, a townhouse or a detached home.

Home sales and prices have fallen in 2022 as the Bank of Canada raised its policy interest rate in a bid to cool searing-hot inflation. As a result, the extremely-hot Canadian housing market is cooling for the first time in years, albeit as prospective buyers face higher borrowing costs.

Many forecasts have been projecting a further cooling going into 2023, so if you're a prospective first-time homebuyer thinking the new year will be your time to jump into the market, what do you need to do to make your dream a reality?

Here's what you need to know.

According to Victor Tran, RATESDOTCA mortgage and real estate expert, the first step prospective first-time homebuyers must take is to talk to a mortgage professional to figure out what they can afford.

Be it a mortgage broker or a mortgage specialist at a financial institution, these professionals will help you figure out how much you can spend on a home, which is a combination of your down payment and what a lender will provide you, said John Pasalis, president of Realosophy Realty.

After you've found your mortgage professional, you're going to want to assemble a "solid team" to work with you on your homebuying quest, Tran said.

"Team as in not just a mortgage broker, but also an experienced realtor in the area that you're looking to purchase and a real estate lawyer. That's the person who is going to wrap everything up and ultimately close the deal," he said.

When it comes to choosing a realtor, it's important first-time homebuyers take the time to interview multiple to find the right one, Pasalis said.

"From my perspective, a big part of their job is really educating buyers throughout the process. If you have someone who wants to educate you, warn you about certain things and prepare you, that's generally better than someone who says, 'How much do you want to spend? Let's go look at houses,'" he said.

"In terms of working with them, a big part of it is their agent educating them early in the process and throughout the process because it's a difficult market right now to navigate. There aren't a lot of homes and when we're looking at sale prices, some of them are very confusing. It's very challenging to come up with a good value for a home, so you want to be careful when deciding who to work with."

When you've found a home you want to put an offer to purchase on, one of the first steps you should take is to send the listing to your mortgage professional, Tran said.

If you are pre-approved for a mortgage, generally that reflects a rough estimate of how much a lender would provide you based on your down payment and other financial information. By sending the listing to your mortgage professional, they can give you a more accurate reflection on what your maximum mortgage amount can be on that home.

"Every property has different annual property taxes, and that can skew the numbers. It can impact the amount you can borrow depending on what the taxes are. If you're looking for a condo, every condo has different monthly maintenance fees; that can also impact the amount you can qualify for as well," Tran said.

"It's important to keep your mortgage specialist or mortgage broker in the loop."

Then, you must work with your realtor to figure out what the property is worth, Pasalis said. Your realtor should give you an idea of a reasonable range that the value of the home is in, and they do that by sending you similar homes nearby that have previously sold.

"In today's market, agents are pricing things very differently. You have some agents still pricing homes below what they're worth to create a bidding war," he said.

"On the flip side, you have some agents and sellers listing homes for prices that are well above what they are worth, so you need to know exactly what the home's worth, or at least get a good idea of it. Where you bid on it in that range is up to you, but that's your starting point before making an offer."

Once you've nailed down your offer price, consider putting conditions on your bid, including one on financing and home inspection, Tran said. If you're buying a condo, you should also put a condition upon review of the status certificate, which is a document that could identify any financial or legal issues with the condo corporation, he added.

Prospective first-time homebuyers should also consider the closing date of the home they're putting an offer on, Pasalis said.

"If you're renting right now, you want at least a 60-day closing date because you're going to have to give your current landlord a two-month notice. You don't want to be owning and renting two places for too long," he said.

"If a seller wants a very quick closing and you're able to accommodate that, then certainly you may want to make that part of your negotiation strategy, to maybe try to get the seller to give you a slightly better price if you're giving them a closing date that they want."

While the Canadian housing market has cooled in 2022, many lenders in response to the Bank of Canada's rate hikes have increased their lending rates, making it more difficult to qualify for a mortgage.

Prime lending rates at major Canadian banks currently sit at 6.45 per cent. Their 50-basis point increase from 5.95 per cent mirrored that of the Bank of Canada, which raised its key lending rate to 4.25 per cent on Dec. 7. That marked the central bank's seventh rate hike of the year since March after sitting at 0.25 per cent for two years following the onset of the COVID-19 pandemic in 2020.

The Bank of Canada will make its next interest rate announcement on Jan. 25. It has signalled that a pause in rate hikes could be coming, with some economists predicting interest rates will peak in 2023.

In certain Canadian markets, it may be difficult for first-time homebuyers, especially Canadians on a single income, to buy real estate. If Canadians are seeking a mortgage from a major lender, they will be met with the banking regulator's stress test. Canadians will have to either qualify at 5.25 per cent or the mortgage contract rate plus two percentage points, whichever is higher.

Canadians can increase their chances of getting a mortgage by increasing their down payment, Tran said, whether it's from additional savings or a monetary gift from family or friends.

They can also look to a cosigner or guarantor on their mortgage, but that might not always help, he added.

"If they (your cosigner or guarantor) have a full-time job and free and clear property, then that's great. You're essentially adding additional income, but no additional liabilities," Tran said.

"But if that cosigner or guarantor has debts of their own, they have a mortgage on a property or they have outstanding liability like credit cards or car payments, they may actually bring down your chances of qualifying."

If Canadians run into trouble getting a mortgage from a traditional lender, there are alternative providers out there, like credit unions. But they do come with risks, Pasalis said. Alternative lenders typically require a larger down payment and their loans come with a higher interest rate, he added.

"It's not necessarily easier to get a mortgage from an alternative lender," Pasalis said.

"It has its own risks if one wants to go down that path."

The question about whether to go with a fixed-term mortgage, a traditional option for Canadians as mortgage payments are set for a specific period, or a variable mortgage, which is prone to change with Bank of Canada rate decisions, comes down to whether you're comfortable with risk, Tran added.

"Personally, I'm comfortable with a little bit of risk. I believe the prime rate will eventually come back down, maybe in a year or two. It's a lot higher now than the fixed rate, but I may start seeing some savings in year three, four and five of the five-year variable term," he said.

Also, "you might be walking down the street and you might see a house for sale, and suddenly now you're in the market again looking to buy. You just never know, so that's why I like variable. Just a little bit more flexibility."

While there has been much focus over the years on saving for a down payment, there are other costs prospective first-time homebuyers need to budget for.

Pasalis, who is based in Toronto, recommends clients budget two to three per cent of the purchase price for closing costs, but lawyer fees and land transfer tax may vary from province to province. First-time homebuyers may also be eligible for a series of federal government incentives, including the First-Time Home Buyer Incentive - a program that sees Ottawa give some first-time homebuyers an interest-free loan of between five and 10 per cent of the cost of a home.

Furthermore, if first-time homebuyers put forth a down payment that is less than 20 per cent of the purchase price, they'll need to get mortgage insurance, Tran said.

"I've seen people who buy homes maxed out and they can't afford furniture when they move in," Pasalis said.

"You don't want to put yourself in that position where you're just stretching so much that you're sleeping on the floor because you can't afford a bed."

Both Pasalis and Tran say it's extremely tough to time the market. However, recent industry reports offer some insight on where the market could be heading in 2023.

In a Dec. 13 report, Royal LePage said it's anticipating Canadian home prices to drop just one per cent in 2023, and Re/Max told Global News on Nov. 29 that the new year could see "balance" return to the market. The Canada Mortgage and Housing Corp. (CMHC) said in an October report that home prices will resume their "upward trend" in the second half of the year.

Tran advises prospective first-time homebuyers to watch the market, and when they see a listing they really like, to "go for it."

"That opportunity may not come by again. It's a good time for buyers to get in right now because it's a less stressful environment, and you can really take the time to make this big decision in your life," he said.

However, shopping for your first home can be stressful, and Pasalis recommends prospective first-time homebuyers be realistic about what they want.

"The one thing that makes it a little bit depressing sometimes is when you look at what you can afford, and you're like, 'This is not my dream home.' ... If I'm a first-time buyer, I would personally try to look for value," he said.

"If you're looking at a home that needs some work over time, that has good bones ... that's a better bet because you end up getting that one probably for less than what, in theory, market value is today because those homes aren't getting as many offers today.... If you want everything from day one, it's going to be hard."

At the end of the day, Tran said it's important to plan for the process.

"Making the offer and getting the financing, I think that's fairly easy," he said.

"Planning is almost 80 per cent of the whole process. As long as you stay in touch with your individuals who are helping you ... and you understand what's happening in the market, it will be a lot easier on you and it will be a lot less stressful."
- with files from Global News' Craig Lord

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Will 2023 be your year to enter the housing market? What 1st-time buyers need to know - National | Globalnews.ca

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Many prospective first-time homebuyers have likely been waiting patiently on the sidelines for a chance to get into the Canadian housing market. As 2023 approaches, a window may be opening for some of them to get that first piece of real estate, whether it's a condo, a townhouse or a detached home.

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This chart shows the inflation rate and the 30 year mortgage rate.

This chart directly shows how in times of high inflation mortgage rates follow and this history can help us understand and know what to pick for our future.

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This image shows the interest rates and the inflation rate.

This fully shows how the two are correlated and how one may lead to the other or be sued to combat the other

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1. What did you learn about your topic that surprised you the most?
How much money you lose based on a higher interest rate
2. Provide a real-life example of how this topic is relevant or interesting
for you.
My dad currently just had a massive hike on his mortgage rate
3. If you could pass on your knowledge to a family member or friend, what
do you think is the most important thing to pass on?
To wait out for a lower rate and choose vairable rates