The Bank of Canada reduced its overnight rate by 25 basis points to 4.5%. Governor of the Bank of Canada, Tiff Macklem was very clear that while they do expect more rate cuts in an effort to help balance growth and inflation, they are not on a predetermined path and will make decisions on a step by step basis depending on what is happening in the economy.
For Real Estate
For you as a homeowner or those wanting to buy, this is good news. The reduced rate is of immediate benefit to those on variable rate mortgages and for many may make a substantial difference in their monthly payments. For the many people needing to renew in the near future it is also good news. New buyers benefit from a reduced stress test rate and mortgage payments will be reduced therefore helping out with affordability. This all leads to what should be a more robust market this fall.
Wayne Bibby
Sutton Group - Associates
416 997 4285
