The Vancouver Courier interviewed UBC Sauder School of Business professor Thomas Davidoff about the potential impact of the interest-rate rise on homeowners and the real estate market.
“If you look at the data, we can see a lot of people are purchasing based on affordability – especially because it has been the lower end of the market that has performed so strongly,” said Davidoff. “So for borrowers just getting by, [the interest rate rise] is an added stress – and then you add in the new ‘stress test,’ which is now qualifying borrowers at an even higher rate, and that creates additional headwinds.”
