Just in Time for the Holidays
The Bank of Canada has dropped interest rates by another 50 basis points, marking the fifth consecutive cut since June 5th. With inflation growth easing and the economy continuing to struggle, speculation is already building for another rate reduction during the next announcement on January 29.
Falling rates are having a noticeable impact on the real estate market. In Greater Vancouver, home sales surged by 28% last month compared to the same time last year, following a 30% increase the month prior.
Adding momentum to this trend, new mortgage lending rules coming into effect on December 15 will allow homebuyers to purchase with as little as an 8.5% down payment and extended amortization periods of up to 30 years. Combined with increased competition among banks, some 3-year fixed mortgage rates are now as low as 3.99%.
For those looking to borrow smaller amounts, we love helping with second mortgages. Rates have dropped to as low as 9.49%, and you can access up to 85% of your home’s equity.
Wishing you all a joyful holiday season and a fantastic 2025!
