– What Does This Mean for Buyers?
Exciting news this week as the Bank of Canada has slashed interest rates by 50 basis points, marking the largest rate reduction since 2020. This move could significantly improve affordability and ignite more activity in the real estate market, especially for buyers ready to take advantage of lower borrowing costs.
While this is great for interest rates, keep in mind that real estate decisions shouldn’t hinge solely on rates. Many buyers locked in historically low rates in 2021-2022 but often overpaid for their homes. If you’re waiting for the lowest possible interest rate, keep in mind it could coincide with the highest home prices. Read the latest real estate market update October 2024: https://www.bcrea.bc.ca/economics/housing-market-update/
There are some great opportunities right now, with increased inventory and motivated sellers. For those wanting the best of both worlds—a good price and a good rate—consider exploring a variable rate mortgage or purchasing with a longer completion date, which could benefit from further rate cuts expected in December. Variable rates explained: https://www.forbes.com/advisor/ca/mortgages/a-guide-to-variable-rate-mortgages/
Learn more about mortgage trends at https://www.canadianmortgagetrends.com/
Remember, fixed rates aren’t immediately impacted by Bank of Canada rate cut announcements, so don’t expect instant changes there. Want more information on mortgages? https://greghorvath.ca/mortgages/
Reach out to find out what you could qualify for!
Cheers,
Greg Horvath
