Interest hikes making home ownership more difficult for 1st-time buyers

As the Bank of Canada hikes interest rates again, some British Columbians say it pushes the prospect of home ownership even further out of reach.

As the Bank of Canada hikes interest rates again, some British Columbians say it pushes the prospect of home ownership even further out of reach.

New Westminster resident Peter Musser says trying to purchase his first home in the Lower Mainland has been disheartening — and Wednesday's interest rate hike was another blow to his search.

The Bank of Canada hiked interest rates a quarter of a point to 4.75 per cent Wednesday, the highest it has been since 2001.

Last week, a housing affordability report published by the National Bank of Canada showed those in Vancouver with an annual income of $83,966 — the median income there — need almost 38 years to save up for a home worth about $1.58 million, the median price of a home in the region.

Chilliwack resident Daniel Goode and his partner have been actively saving for a downpayment on a house for about three years now.

He says hiking interest rates seems counterproductive to helping first-time home buyers like himself.

"It's pretty depressing to watch as a first-time buyer," said Goode.