Rental market will suffer most amid Bank of Canada interest rate hike: Experts
BNN Bloomberg
The Bank of Canada’s decision to hike rates on Wednesday will put additional pressure on Canada’s already tight rental market, experts say.
The BoC’s surprise 25-basis-point hike has pushed the overnight lending rate to 4.75 per cent and will indirectly cause shelter costs, such as the price of rent, to rise as landlords look to pass off higher costs to tenants, housing experts warn.
“We’re going to see the biggest impact of today’s hike in the rental market,” John Pasalis, president of Realosophy Realty, told BNN Bloomberg in an interview on Wednesday.
Pasalis explained that people looking to rent a condo right now, or those who have been displaced by the sale of an investment property, are the most vulnerable in this environment as the space becomes more crowded.
