What Does It Really Mean?
The economy is a bit crazy right now. The oil prices and shift in leadership has created an atmosphere of concern and uncertainty. People are differing key financial decisions in lieu of the unknown. I believe that with access to the right resources and knowledge comes a great deal of opportunity in this environment. This month, the Bank of Canada dropped its rate. Read below to see what this means.
Earlier this week, the Bank of Canada dropped its interest rate to 0.5% in efforts to stimulate the Canadian economy. This is the second drop we have seen this year as the bank reacts to lower than expected GDP growth. These shifts greatly influence the lending rates offered by Canada’s largest financial institutions, but what does this mean for the average home buyer?
If you follow financial markets, you may have noticed that this year has seen many of Canada’s largest banks slash their mortgage rates in response to a more competitive lending market. The BoC’s most recent move will likely facilitate further cuts as banks are given more room to offer loans at lower rates to the average borrower.
Since the number of borrowers in the market has remained low and competition high for quite some time, downward pressure placed on mortgage rates will likely increase.
In short, this is a buyer’s market and if you are interested in purchasing a new home, now may be the right time to act as mortgage rates dwindle. My team and I have put together some great strategies that can help you buy from a position of strength. Give me a call for a no obligation consult at your convenience and we’ll help you save on your purchase and achieve mortgage freedom in a shorter span of time.