The Bank of Canada is likely to cut rates due to falling inflation, primarily driven by increasing shelter costs. This move is expected to alleviate mortgage interest costs and stabilize real estate markets. Amidst consumer and business pessimism, further economic slowdown is anticipated, possibly leading the Bank to lower its policy rate to 2.5%-3%. Variable-rateRead more
blog
On June 5, the Bank of Canada cut the benchmark rate from 5.00% to 4.75%. Confidence in hitting the 2% inflation target due to declining core inflation.Read more
Fixed-rate mortgages offer stability with unchanging monthly payments throughout the term. Variable-rate mortgages have payments that change with interest rate fluctuations, posing potential risks.Read more
The BoC is confident after raising its rate by 475 points over 2-yr to curb inflation. The Bank's dovish tone raised hopes for another rate cut in July and potentially lower rates by year-end.Read more
Borrowers often focus on interest rates when shopping for mortgages, but the term length of the mortgage contract is crucial for overall costs and flexibility. In Canada, common mortgage term lengths include three years (flexible but requires more lender comparison), five years (popular but can lead to penalties if broken early), and ten years (secureRead more
Over 2M mortgages in Canada will be up for renewal in 2025 and 2026. The Bank of Canada's key interest rate has gone from 1.74% in May 2019 to 4.75% today.Read more
Rate Cuts Impact: Bank of Canada rate cuts may not lower mortgage costs. Variable vs. Fixed Mortgages: Variable-rate mortgages respond to cuts; fixed rates depend on bond yields.Read more
The BoC cuts its key lending rate by 25 basis points following a 27-mo period of rate hikes totaling 475 basis points. Markets expect further rate cuts in September and December, possibly starting as early as July if inflation remains controlled.Read more
~2M Canadians will renew their mortgages in the next year and a half. While interest rates had been rising, the BoC recently cut its key rate.Read more
Chief economist Douglas Porter analyzes the effects of Bank of Canada's rate cut on the Canadian dollar, housing market, and wage growth. The Canadian dollar remains stable, housing market activity is limited, and wage growth is challenging with a 5.4% increase in June. Unemployment rate rose to 6.4% in June due to student unemployment andRead more
