Gurpreet Dhaliwal Realtor

04/17/2025

Bank of Canada Rate Announcements

Bank of Canada holds rate at 2.75% – Here's what it means for you

After seven straight cuts, The Bank of Canada announced today that it is holding its policy rate at 2.75%, pausing its rate-cutting cycle for the first time since last summer.

What this means for you:

If you have a variable-rate mortgage: Your interest rate and payments won’t change for now. If your mortgage adjusts with the prime rate, it will stay the same until the Bank of Canada makes its next move. If you have a fixed-rate mortgage: There’s no immediate impact, but if rate cuts resume later, it could mean lower rates when it’s time to renew. If you have a line of credit or other loans tied to prime: Interest charges will remain steady, with the prime rate expected to stay at 4.95% at most lenders and TD Bank's mortgage prime rate remaining at 5.10%.

What’s next?

The next rate decision is coming on June 4, 2025, and economists will be watching economic data and inflation trends to see if more rate cuts are ahead.

If you have questions about what this means for your mortgage or want to discuss your options, feel free to reach out. I'm always happy to help

04/11/2024

The Bank of Canada leaves Interest Rates Unchanged

The Bank of Canada left its key lending rate unchanged at 5.00% this morning, marking the Bank’s sixth straight rate hold.

The decision was widely expected, though economists believe the Bank is likely to begin cutting rates in the coming months in response to a slowing economy.

In its statement, the Bank said “While inflation is still too high and risks remain, CPI and core inflation have eased further in recent months. The Council will be looking for evidence that this downward momentum is sustained.”

The Bank expects inflation to remain around 3% for the first half of this year before falling below 2.50% in the second half and reaching its neutral target of 2% in 2025.

What this means for your mortgage

Variable-rate mortgages: There will be no change to your rate with the prime rate holding at 7.20% at most major lenders (excluding TD, which has a mortgage prime rate of 7.35%). Fixed-rate mortgages: Your mortgage term remains unaffected by this announcement.

Looking forward

We're closely monitoring incoming economic data and how it may impact the timing of anticipated rate cuts later this year. The Bank’s next rate decision is scheduled for June 5.

Should you have questions or wish to discuss adjustments to your mortgage strategy in light of these developments, please don't hesitate to reach out.

03/06/2024

The Bank of Canada leaves benchmark rate at 5.00%

As was widely expected, the Bank of Canada has left its key lending rate unchanged at 5.00%.

This marks the Bank’s fifth straight rate hold since it last raised rates back in July.

In its statement, the Bank said it is "still concerned about risks to the outlook for inflation, particularly the persistence in underlying inflation."

"Governing Council wants to see further and sustained easing in core inflation and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour," it added.

What this means for your mortgage

Variable-rate mortgages: No change in your rates, with the prime rate holding at 7.20% at most major lenders (excluding TD, which has a mortgage prime rate of 7.35%). Fixed-rate mortgages: Your mortgage term remains unaffected by this announcement.

Looking forward

We're closely monitoring the landscape as we approach anticipated rate cuts by the Bank in the second half of the year. Meanwhile, the Bank's next rate decision is scheduled for April 10.

02/23/2024

BC Government Announces New Housing Measures in 2024 Budget

February 22, 2024

This afternoon, Finance Minister Katrine Conroy introduced the provincial government’s Budget 2024. The budget unveiled several new housing related measures, including the BC Home Flipping Tax and various property transfer tax exemptions.



While BCREA commends the provincial government’s renewed commitment and efforts to improve housing attainability for British Columbians, the budget’s introduction of a “flipping tax” is unlikely to have a meaningful impact on housing attainability.

Flipping Tax

The BC Home Flipping Tax is a 20 per cent tax on the gain from sale of a home within a one-year time horizon and a pro-rated tax on sales up to within a two-year period. The tax will apply to both properties and assignments of contracts and is in addition to any existing federal or provincial income taxes incurred from the sale of the property, including the federal anti-flipping tax. Exemptions will be available for certain life circumstances that might motivate the sale of a property within two years, including for added supply through the creation of rental accessory dwelling units.

The BCREA Economics Department’s preliminary analysis estimates the flipping tax will decrease home sales by between 1-2 per cent over a three-year period. Given the relatively small impact, prices and housing attainability are essentially unchanged by the tax. This is unsurprising, given that short-term flipping represents a low share of sales activity (less than 2 per cent in both Vancouver and Victoria).

However, because the government has now implemented a disincentive to sell within a two-year period after purchasing, there will be some potential sellers that are prompted to delay listing, resulting in a lower level of listings inventory than without the tax. As a result, home prices may increase with the flipping tax compared to a no-tax baseline. Ultimately, the only way to prevent harmful short-term speculation in the housing market is to ensure housing is abundant. Our team plans to continue to analyze the flipping tax and provide updates when available.

Property Transfer Tax Exemptions

In principle, BCREA supports reduced property transfer taxes for first-time home buyers and people purchasing newly constructed homes. However, while we're in favour of measures that increase first-time home buyers’ abilities to purchase properties, it's critically important that housing supply is increased so they aren’t caught in bidding wars to acquire those homes. More detail is needed on property transfer tax exemption for purpose-built rentals to understand its impact on housing attainability for British Columbians.

BCREA will continue to advocate for more thoughtful and evidence-based policies that can genuinely move the needle on housing attainability and alleviate the housing crisis facing British Columbians.


In early March, BCREA and delegates from real estate boards across the province will be taking part in our annual Government Liaison (GL) Days in Victoria. During this time, we will be meeting with MLA’s representing all parties and advocating for the establishment of a permanent housing roundtable where stakeholders such as BCREA can advise on housing policy prior to its introduction and implementation. Stay tuned to BCREA channels for more details about GL Days.

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01/24/2024

BANK OF CANADA INTEREST RATE ANNOUNCEMENT

The Bank of Canada leaves benchmark rate at 5.00%

As expected, the Bank of Canada has left its key lending rate unchanged at 5.00%.

This follows 10 previous rate increases over 12 rate announcements, which raised the overnight target rate by 475 bps since March 2022.

In its statement, the Bank said it is “still concerned about risks to the outlook for inflation, particularly the persistence in underlying inflation.”

However, the Bank added that with expected GDP growth of just 0.8% in 2024, it expects inflation to continue to ease from around 3% in the first half of 2024 to its 2% target in 2025.

What happens now?

As a result of today’s decision, prime rate will remain unchanged at 7.20% and there will be no changes to existing variable-rate mortgages. This announcement also has no impact on fixed-rate mortgage holders.

The Bank’s next announcement will take place March 6.

If you have any questions or concerns about the rise in borrowing costs over the past year, I encourage you to reach out so we can discuss your personal situation and options.

12/06/2023

12/06/2023

BANK OF CANADA RATE CHANGE ANNOUNCEMENT

The Bank of Canada leaves interest rates unchanged again.

For the third consecutive meeting, the Bank of Canada has left its key lending rate unchanged at 5.00%.

This follows 10 previous rate increases over 12 rate announcements, which has raised the overnight target rate by 4.75% since March 2022.

In its statement, the Bank said that while high interest rates have restrained consumer spending and that economic growth stalled in the third quarter, it is “still concerned about risks to the outlook for inflation and remains prepared to raise the policy rate further if needed.”

The Bank added it wants to see “further and sustained easing in core inflation.”

What happens now?

Today’s decision means there will be no change to the prime rate and no changes to existing variable-rate mortgages. This announcement also has no impact on fixed-rate mortgage holders.

The Bank’s next announcement will take place January 24, 2024.

If you have any questions or concerns about the rise in borrowing costs over the past year, I encourage you to reach out so we can discuss your personal situation and options.

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