Sell a Property
Sell a Property
Call us: 1-877-297-1188
More Blogs

Understanding the Impact of Canada’s Steady Interest Rates on Real Estate

Understanding the Impact of Canada’s Steady Interest Rates on Real Estate  The recent decision by the Bank of Canada to maintain its key policy rate at five percent, a level this high not seen in 22 years, has significant implications for the real estate market. At HomeFree Realty, we’re here to help you understand what […]

homeFree

March 28, 2024

Understanding the Impact of Canada’s Steady Interest Rates on Real Estate 

The recent decision by the Bank of Canada to maintain its key policy rate at five percent, a level this high not seen in 22 years, has significant implications for the real estate market. At HomeFree Realty, we’re here to help you understand what this means for homeowners, buyers, and the overall housing market. 

The Current State of Interest Rates 

Steady Rates Bringing Relief For homeowners with mortgages tied to prime interest rates, the central bank’s decision to hold rates steady is a welcome development. As noted by Daniel Vyner of DV Capital, this stability may offer some relief, especially for those with variable rate mortgages or home equity lines of credit (HELOCs). 

High Borrowing Costs Remain a Challenge However, the cost of borrowing remains high, and as Victor Tran from Ratesdotca points out, we are still in a period of elevated borrowing costs. This situation continues to exert pressure on household finances and the broader housing market. 

Implications for Mortgage Holders and Buyers 

Variable vs. Fixed-Rate Mortgages The choice between variable and fixed-rate mortgages has become more complex. With bond yields decreasing, the gap between fixed and variable rates is widening.  This makes the decision more complex for both existing homeowners and new market entrants. 

Potential for Interest Rate Cuts Looking ahead, potential interest rate cuts in 2024 could offer some relief. This possibility something borrowers should watch closely, as it could impact their overall mortgage strategy. 

Navigating the Housing Market 

Muted Short-Term Impact Laird believes that the announcement will have a limited impact on the housing market in the immediate term due to the typical seasonal slowdown. However, anticipation of future rate cuts could invigorate the market in the new year. 

Buyer Activity in 2024 Further rate rates in 2024 are predicted by financial experts, potentially in the second or third quarter and could activate sidelined buyers. This may lead to increased activity in the housing market once rates start to fall.

homeFree Realty’s Advice 

Staying Informed and Flexible

The situation for mortgage owners is dynamic and influenced by multiple factors. Staying informed about market developments is key. Flexibility in your mortgage strategy may be necessary as the market shifts. 

Expert Guidance for Your Decisions

Whether you are considering buying, selling, or refinancing, homeFree Realty is here to provide expert advice tailored to these changing economic conditions. Visit our Mortgage Services for more information or contact us directly for personalized guidance.

SELL SIMPLE.
BUY BETTER.

With homeFree, it’s easy! Finally, a platform that connects buyers and sellers. Offering support and service every step of the way, we save you money and give you back control.
List Now
All the trademarks are the property of their respective owners.
© 2024 homeFree Realty Inc. All rights reserved.

The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.

* Only when the buyer comes direct, otherwise the seller may choose to negotiate a commission with the buyer’s agent.

Legacy Mortgage Group is partnered with homeFree to offer free in-depth mortgage Pre-Qualifications to give you the confidence to shop for your next home purchase.
Please fill in the form, and we will be in touch ASAP.
Legacy Intake Form
X
crossmenuchevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram