Canadian Home Prices Expected to Drop Nineteen Percent By Next Year TD

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TD Bank has officially downgraded their forecast for the housing market compared to their take in March, due to monetary policy tightening at a faster-than-expected rate. The Bank of Canada (BoC) has implemented three hikes to its trend-setting Overnight Lending Rate (OLR) since March, bringing the benchmark cost of borrowing to 1.5% from the record-low 0.25% it had hovered at throughout the pandemic. As consumer lenders base their Prime cost of borrowing on this rate, qualification thresholds and payments have risen markedly for variable mortgages and line of credit products.

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