The Bank of Canada has lowered its key interest rate for the fifth time in a row, bringing it down to 3.25%. This adjustment comes as the Canadian economy expands at a slower pace than initially forecasted.
Why This is Good for Buyers
Lower interest rates often translate to more affordable borrowing costs for buyers, particularly for mortgages. This can make homeownership more accessible, as monthly payments on variable-rate loans may decrease and fixed-rate mortgages could offer more attractive terms. Additionally, with reduced rates, buyers may find greater purchasing power, enabling them to explore higher-priced properties or save money on interest over the life of their loan.
Why this is Good for Homeowners
This rate cut could also mean that loans such as lines of credit could have lower rates too. Excellent information if you were planning on some home improvements or upgrades. If you currently own your home and your mortgage term is up for renewal in the next 12 months, this could be positive news as well.
Now is the time to speak to your mortgage professional. If you need a recommendation for someone, please do not hesitate to ask. I would be happy to point you in the direction of someone my clients trust.
-Darryl Van Eerde
