Commercial real estate industry insiders welcomed the Bank of Canada’s decision to hold its overnight interest rate at 5% on Wednesday.

“A stable policy rate means that real estate investors can now look forward to more predictable financing conditions,” said Marie-France Benoit, Avison Young’s director of market intelligence, in a statement.

The BoC said past interest-rate hikes are dampening economic activity and relieving price pressures. But weaker demand and higher borrowing costs are weighing on business investment.

Benoit believes that the 5% level marks the peak for interest rates. But, she warned, the market will be hit on several fronts, including weaker demand, tighter credit and high financing costs.

The rate pause provides “a sigh of relief” for multi-residential property landlords because their mortgage costs won’t rise further, Davelle Morrison, a broker with Toronto-based Bosley Real Estate, told BNN Bloomberg. As a result, she added, landlords won’t need to increase rents.

In early October, she said more Ontario landlords were looking to list their properties as short-term rentals to avoid difficulties with debt repayments.

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