The Bank of Canada interest rate hikes will CRUSH the Toronto real estate market Earlier this month, the Bank of Canada increased the overnight lending rate by 75 basis points leading homeowners and landlords to wonder how it will affect them. Much like the previous rate hikes, this will cause housing prices to fall and variable mortgage payments to rise. One interesting point is that we're starting to have trigger rates hit on variable mortgages. This means some people are having to renegotiate their mortgages with their lenders because their payments aren't even covering the interest - never mind paying down the principal. All in all, it seems like we're going to feel more pain before we get some relief.

In this video, I explain how the recent 75 basis point increase by the Bank of Canada will affect the Toronto housing market.