Some of Canada's largest banks are offering low mortgage lending rates, and many people looking to move from condos and rentals into family homes in the city are capitalizing on fixed rates.
"It's a seller’s market out there ... and right now is the busy season. There are a lot of Toronto buyers out there looking for their first home, looking to take advantage of the rates," says James Laird, chief operating officer of True North Mortgage, in an interview with CBC's Metro Morning on Monday.
Laird says that the primary factor driving demand and fuelling the red-hot housing market is that an increasing number of potential buyers are able to qualify for large mortgages at bottom-barrel rates, and banks are "competing very aggressively for those buyers."
In March, Bank of Montreal slashed its rate of five-year fixed mortgages to below the 3 per cent level, a sensitive benchmark that former Finance Minister Jim Flaherty warned about during his tenure.