How Long Will Interest Rates Stay High in Canada?

Interest rates impact affordability more than any other factor in today’s market. Buyers want to know if high rates are a short-term issue or here to stay.

Economic Outlook

Rates are expected to decline gradually as inflation stabilises, but not return to pre-pandemic lows.

What Buyers Should Expect

• Moderate drops over 12–18 months

• A new “normal” higher than 2018–2021 levels

• Slower but steady improvement in affordability

How Buyers Can Adapt

• Extended amortisations

• Co-buying

• Presales for future rate timelines

• Bigger down payments

The Bottom Line

Rates will ease, but buyers should prepare for a higher long-term baseline.