HOW THE LATEST BANK OF CANADA RATE CUT MAY IMPACT YOU
The Bank of Canada (BoC) just cut its lending rate by 50 basis points, bringing it down from 3.75% to 3.25%
When the BoC cuts its lending rate, it can become cheaper for Canadians to borrow money.
For Canadians with variable rate mortgages, rate cuts can mean more of their money goes toward the principal on their mortgage, and less towards interest.
For Canadians with fixed rate mortgages, this recent BoC rate cut will not immediately make an impact.
Fixed rate mortgages are based on five-year bond yields, and financial markets have already been expecting the BoC to cut rates this year. Those expected cuts are, to some degree, already factored into bond yields, and are therefore reflected in current fixed mortgage rates.
TD Economics believe there will be more rate cuts in the new year and expect the BoC’s lending rate to be cut down to 2.25% by the end of 2025.
Is your mortgage due in 2025? Reach out to me and I'd be happy to refer you to a preferred Mortgage Broker who can guide you in the right direction.
Thinking of making a move in 2025? With over 31 years of experience in Residential Real Estate, let us Help You Make the Right Move!
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.
Comments:
Post Your Comment: