Canadians have had plenty to talk about in the real estate market this March. From parents chipping in on their kids’ rent to lenders refusing to renew some mortgages, it’s been an eventful month.
Parents are increasingly helping their adult children with rent payments. A recent survey from CIBC found that 1 in 4 parents are giving financial assistance to their adult children to help them with rent payments. Of those surveyed, many said that the pandemic had made it harder for their kids to afford rent and that they were helping out to ensure that their children had a safe place to live.
At the same time, some lenders are refusing to renew their mortgages. A report from BMO found that some lenders are not renewing mortgages for those who have been impacted by job loss or reduced income due to the pandemic. The lenders are instead offering lines of credit or personal loans to help those in need.
The Bank of Canada recently announced that it would keep its overnight rate target at 0.25 per cent. This rate is expected to remain in place until 2023, which is good news for those looking to get into the market.
With interest rates staying low, many buyers are taking advantage of the housing market. Prices across the country remain stable, although some areas are seeing a slight increase.
In Toronto, the number of homes listed for sale has risen by 28 per cent since February. This could be due to buyers looking to take advantage of the low interest rates, or sellers waiting for an increase in prices before listing their homes.
The pandemic has also had an effect on the rental market. Despite an increase in rental listings, vacancy rates remain low as many tenants are either unable to move or are opting to stay in their current units due to the uncertain economic climate.
Overall, it’s been an eventful month in the Canadian real estate market. With parents chipping in on their kids’ rent and lenders refusing to renew some mortgages, it’s clear that the pandemic is having a lasting impact on the housing market.