Rate Cut Another Step In The Right Direction

On October 23, the Bank of Canada announced a 50 basis-point cut to 3.75 pr cent (https://www.bankofcanada.ca/2024/10/fad-press-release-2024-10-23/). This is the first time since the pandemic that the rate was lowered by half a point, largely due to our inflation rate being back at the 2 per cent target. The Bank of Canada also declared its expectation to reduce the policy rate further, depending on keeping inflation around the 2 per cent mark – but who knows what might happen?

This rate cut is great news for potential new home buyers. There are spectacular choices to be had out there, both low-rise and condominium, and borrowing at this low rate is tempting. Sitting on the fence waiting can take you only so far when it comes to timing your home purchase. Take advantage of the situation, and act sooner rather than later.