They all said they're having trouble getting financing due to the sudden real estate downturn brought on primarily by the Bank of Canada raising interest rates in an effort to tame inflation, which has sent mortgage rates skyrocketing and home values plunging. Existing mortgage rates would mean unaffordable payments, they say. Meanwhile, buyers who planned to sell their existing homes are finding few interested buyers as home sales decline across the country. Kevin Lee, CEO of the Canadian Home Builders Association, said inflation has raised construction and labour costs, while higher interest rates have raised the cost of financing projects. That would be the best scenario for the Paradise buyers, but it could be a case of too little, too late.

Source: CBC News December 19, 2022 09:31 UTC