Graph: Desjardins,\u00a0Spotlight on Housing<\/em><\/p>\n\u201cThis type of acquisition is exacerbating the lack of homes available for households as well as putting additional upward pressure on prices,\u201d said B\u00e9gin\u2019s report, which pointed out that new buyers typically have a smaller budget and less room to manoeuvre in multiple-offer situations.<\/p>\n
Those with a variable-rate mortgage will notice the change with each 25 basis-point increase, the first one expected next month followed by three more by the end of 2022 and potentially two more in 2023. This would send the target rate from its current value at 0.25 per cent to 1.75 per cent by the end of next year.<\/p>\n
Fixed mortgage rates have already been on the rise after hitting bottom a year ago, and will continue to creep upward over the coming quarters.<\/p>\n
\u201cMortgage holders with a fixed interest rate won\u2019t necessarily see their monthly payments increase when the term expires,\u201d said B\u00e9gin. \u201cEverything will depend on whether the interest rate in effect at the time the mortgage is renewed is higher than the one when the loan was initially granted.\u201d<\/p>\n
Quebec new construction starts to wind down<\/h3>\n
At the start of 2021, housing starts were on the rise, with a historic high of 113,548 new homes in Quebec during January. Throughout the year, starts gradually fell to 52,011 units by December, signalling a return to pre-pandemic norms.<\/p>\n
According to B\u00e9gin, Desjardins is forecasting that Quebec will see 55,000 new homes this year, followed by 52,000 in 2023, quite a difference from the 67,810 units started in 2021.<\/p>\n
\u201cHigher interest rates will affect new construction, especially single-family homes,\u201d said the report. \u201cIn contrast, the construction of rental units will remain strong.\u201d<\/p>\n
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<\/a>Photo:\u00a0alpegor<\/a> \/ Adobe Stock<\/em><\/p>\n