On Wednesday, July 24th, the Bank of Canada reduced its k interest rate to 4.5%. While this won't affect anyone who is locked into a fixed rate mortgage, it will help those who were brave enough to stick with a variable rate mortgage. Personally, my husband doesn't have the stomach for fluctuating interest rates and wants to know exactly how much our mortgage is, so we're locked in but we got into at a good time, so, phew!
And in terms of what it means in actual dollars and sense? Not a lot. A few hundred dollars a month maybe. But in terms of the psychological impact? A whole lot of positive news on that front. People who did nothing in 2023 because of rising interest rates are tired of waiting. And those who haven't been able to afford anything are now qualifying for a first time home. This is good news for my clients, good news for the real estate market and hopefully good news for you.
If you've been considering a home purchase, talk to your mortgage advisor and see what you can now afford. Then give me a call and we can go shopping together!
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