The Bank of Canada reduced its key interest rate by 3/4 of a point today. In its announcement, the Bank stated that Canada's economy is now entering a recession as a result of weakness in global economic activity. However, the Bank also noted that "money markets and overall credit conditions in Canada are responding to significant and ongoing efforts to provide liquidity to the Canadian financial system."
Please find attached a TD Economics commentary on the Bank of Canada rate decision announced today. Major banks have cut their prime by 0.50%, bringing it down to 3.50%.
This is good news for current variable rate holders. The article also implies that further cuts may still occur on January 20th at the next Bank of Canada's next scheduled meeting.
Pricing for fixed-rate mortgages is not directly affected by today's announcement.
What should you do if you are thinking of buying or selling?
If you are considering selling your condo, call Shaun. If you are thinking of buying real estate, call Mike Cook. Everybody has a unique and different situation and our primary goal is to help each of you determine how best to maximize your investment. Let's talk about your individual scenario so you have all the information you need to make an informed decision. Now is the time for honest, straight talk, and that's what we promise to deliver.
We welcome your feedback
To comment on this or other BLOG posts contact Shaun, Vancouver's most committed downtown luxury condo and Coal Harbour realtor. For this and other BLOG posts or CONDO TV episodes follow the links below to one of Shaun's specialty sites