All signs suggest that the Bank of Canada will cut interest rates on December 11, which is good news for those looking to enter the housing market. As the economy slows, with GDP growth underperforming and inflation slightly higher than expected, the anticipated rate cut is expected to lower prime rates and variable mortgage rates, making home ownership more affordable. The economists predict that the central bank will lean towards a cut of 25 basis points, bringing its lending rate down to 3.50%, however, a cut of 50 basis points cannot be ruled out.Starting December 15, new mortgage rules will take effect, including an increase in the insured mortgage cap from $1 million to $1.5 million, as well as the option for buyers of new homes to apply for a 30-year amortization. These changes could spark a busy real estate market in January, once the holiday season is over.For anyone looking to buy or renew a mortgage in the coming months, now is the time to connect with a mortgage professional to strategize as the market could heat up in the new year.
What could the Bank Of Canada's next announcement mean for the market?
