New influx of Toronto house-seekers eyeing Hamilton via The Hamilton Spectator
The influx of home buyers from the GTA moving to Hamilton is intensifying as a new wave of Torontonians try to offset the added costs of new mortgage rules and rising interest rates.
Housing analysts and local realtors are starting to see a spillover effect from the new stress test being applied to mortgage applicants since Jan. 1.
The stress test requires home buyers to demonstrate they can afford higher payments if interest rates rise substantially. That means some buyers have had to settle for smaller mortgages that fall short of their needs to buy in the GTA.
On Wednesday, the Bank of Canada raised its key lending rate by a quarter percentage point to 1.25 per cent — the highest it has been since 2009.