03/08/2024
Bank of Canada Maintains Policy Rate at 5% - What Should Borrowers Expect?
Borrowers should anticipate that variable-rate mortgages will remain stable, and fixed rates across all terms will stay within their current range. Throughout the spring market, there will be rate discounts as lenders compete for mortgages in a tight market where banks are seeking new business.
The Bank of Canada’s concern over inflation is likely to keep rates steady for an extended period. Rate cuts are not expected to occur until late this year or into next year, depending on the situation. The silver lining is that this stability provides prospective borrowers with greater confidence in entering the housing market, offering more assurance that the Bank has almost certainly ended its tightening cycle. Borrowers can plan more easily around the end of the tightening cycle and focus on strategizing for the short to medium term to capture lower rate opportunities in the future.
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Information provided by John Chrisanthidis, Mortgage Broker.