Lower rates increase home affordability, driving up market competition for buyers and sellers.
Big news for everyone in the real estate market: the Bank of Canada just slashed its overnight lending rate by 0.5%. Whether you’re a homeowner, buyer, seller, or investor, this rate cut could impact your next move significantly.
But there’s one catch: the time to act is now, and here’s why:
If you already own a home, the impact depends on your mortgage type. Have a fixed-rate mortgage? Nothing changes. But if you’re in a variable-rate mortgage, it’s good news: now, more of your payment goes toward the principal. This means you’re building equity faster and paying less in interest. And if your mortgage has variable payments, you’re likely seeing your monthly bill go down. More savings, less stress.
For buyers, now is the best time to move. With lower rates, your buying power just went up. This means that you can afford more houses for the same budget.
“Real estate values are likely to keep rising, so don’t miss out on today’s rates and prices.”
Rates on five-year fixed mortgages are dropping to around 3.99%, and five-year variable rates to about 4.75%. But don’t wait—when rates fall, more buyers jump into the market, and prices could start rising as demand increases. If you’re ready to buy, now’s the time.
If you’re in the market to sell, buyers have more purchasing power when rates go down, which means higher demand for homes. Right now, there’s a shortage of homes, so prices are climbing.
But here’s the twist: lower rates might also encourage more homeowners who’ve felt “trapped” by high rates to list their homes. This could mean a rise in inventory and competition later on, so listing sooner might help you secure top dollar before the market shifts.
If you’re looking to invest, this rate cut could be a game-changer. Lower rates generally lead to higher property values over time. Plus, changes in the mortgage rules could make investing even more lucrative.
Here’s my expert advice: Don’t wait for the market to “bottom out.” Real estate values are likely to keep rising, so don’t miss out on today’s rates and prices.
Whether you’re a homeowner, buyer, seller, or investor, this rate change creates a unique window of opportunity. If you have any real estate related questions, feel free to call or text me at (514) 917-6284. Don’t wait and risk missing out—reach out to discuss your next move and how this rate cut can work for you.
