The Bank Continues to Lower Rates
This week the Bank of Canada dropped interest rates again making this the bank’s third consecutive cut. More drops are expected this Fall, and this is a welcomed relief for many homeowners. The constrained economic growth, weakening labour market and softening inflation; is allowing the Bank to finally begin an easing cycle. Before we get too excited though; the favourable impact of falling interest rates and inflation will take some time to spill into your bank accounts. In the meantime, there is likely more pain to be felt for many borrowers.
The real estate market for the most part has been soft with Greater Vancouver home sales falling 17% last month. With the easing interest rates improving home affordability, we may be at the bottom of the market. You know the saying; ‘don’t wait to buy but buy and wait’.
Mortgage rates fall and the mortgage rate wars are beginning. The 5-year fixed can now be offer as low as 4.44% and a variable rate at Prime -.80%.
Private/Alternative mortgage rates have also moved lower, with 2nd Mortgages being offered under 10%.
Did you know:
Credit delinquencies are on the rise as Canadians’ debt climbed to $2.5 trillion in the second quarter of 2024. According to Equifax Canada credit card holders are carrying an average balance of over $4,300.
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