As Toronto’s real estate market continues to struggle amid the Bank of Canada’s aggressive campaign to hike interest rates, some agents say that they are increasingly hearing from buyers of pre-construction condos who are worried about closing the deal.

Realtor Jordan Scrinko, of precondo.ca, a website portal for pre-construction projects in Canada, said several of his clients have expressed concerns about being able to afford their pre-construction investment, which many purchased when interest rates came in at under two per cent.

After seven lending rate hikes in 2022, the BOC’s policy interest rate is now at 4.25 per cent.

In order to obtain a mortgage, all buyers must pass a stress test that determines how much they can afford to borrow and pay each month if interest rates go up. The minimum qualifying rate is either the benchmark rate of 5.25 per cent or the rate offered by a lender plus 2 per cent, whichever is higher.

Last month, Scrinko and his team worked with roughly 70 clients who had purchased-pre-construction units in two large Toronto condominium developments.

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