What do interest rate cuts mean for you?

You’ve probably seen this headline everywhere: Bank of Canada cuts target interest rate by 0.5%. But, what does this mean for you?

Well, it means both variable and fixed rate mortgages are likely going to be dropping across the board.

In other words, now is the time to buy.

Industry analysts have long been predicting an interest rate drop, but the drops we’ve seen in March in the United States have far outpaced anything that was expected. This is a good indicator of what’s to come in Canada, and how mortgages will be affected. It’s not if, but when the mortgage rates will drop.

With mortgages dropping to the lowest they’ve been in a long time, you’ll be able to lock in a great rate, and get a home that otherwise would have been outside of your budget. Current homeowners will be looking to upgrade, first-time homeowners will be looking to buy, and sellers will be able to get what they deserve for their homes, all because they’ll be paying less to the banks, and investing more directly in their properties. 

You can afford more than you probably realize. As part of a realtor’s job, we are in constant discussions with brokers, banks, other agents, and homeowners to understand the entire picture. All signs point to buyers having more power than ever before. To take advantage of this, you don’t want to wait until the mortgage rates drop to begin your search.

If you’re thinking of possibly beginning the search for your next home, let’s talk. You may not be ready to take the plunge and fully immerse yourself in the buyers market just yet, but we can figure out what those first steps might be, and when the right time is for you. A good realtor is there to help you know your options. Realtors aren’t just buyers and sellers, they are partners throughout the entire process, whether you’re buying tomorrow, or months from now.

Not sure where to begin? Let’s chat.

Contact me at ryan@ryanconway.ca to find out how the recent changes will affect you.