This past Wednesday, the Bank of Canada announced a surprise 25-basis point rate cut. What does this mean for the real estate market?
Historically, bank lending rates have a tendency of moving with BoC’s prime rate, which affects variable mortgage rates. While financial institutions have not reported changes in their lending rate, experts are expecting record low interest rates in Canadian history unless banks decide to hold onto profits. Fixed rates are also expected to decrease.
The timing of the rate cut is certainly welcome news for those working in the real estate industry, as historical data show that the spring market is the busiest time of the year.
If you are currently house hunting, speak to an experienced and knowledgeable Century 21 King’s Quay realtor today to see how you may benefit from this rate cut.