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Estimate the effect on the market value

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Reference no: EM133133406

The current market value of your home is $360,000. The current mortgage rate is 3%, the property tax rate (the effective rate on market value) is 1%, operating costs (maintenance, basic utilities, insurance) are 4% of market value, the expected rate of capital gain is 2%, and the expected rate of in?ation is 2%. Estimate the effect on the market value of your home if the Bank of Canada raises interest rates, pushing up mortgage rates by 1%.

Reference no: EM133133406

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