In particular, new guidelines that compelled banks to set aside money for addressing delinquent loans have given the industry a “war chest” for use in a worst-case scenario.
All of these factors have contributed to keeping potential monthly payment rises in check.
“I think that mortgage rates will remain relatively stable. I just don't see anything that will send them up,” the CIBC’s Benjamin Tal told CBC News
While major banks have implemented rate hikes since December—with the CIBC setting its three-year fixed term to 2.59 per cent and the RBC increasing its five-year fixed rate to 3.04 per cent—observers noted that these slight spikes shouldn’t give home owners and would-be buyers reason to panic.
“I think the rise we've seen in mortgage rates isn't really very significant,” Queen’s University real estate academician John Andrew said.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
According to industry players, this mid-long-term stability can be attributed to global developments and government regulations that have conspired to reduce risk-taking in the housing industry.