Debt financing for most commercial real estate assets in Metro Vancouver is readily available as lenders continue to offer mortgage rates underpinned by historically low interest rates. Are interest rates on the rise? Many are speculating as to when a hike will occur, with most believing this will take place in late 2012 or early 2013.
The yield on 5-year GOC bonds remains below 2.0% which is supporting rates as low as 4.00% on commercial real estate debt.
Source: Bank of Canada