Unless you’ve been stuck in an igloo for the last week, you should know that the bank of Canada cut their lending rate down by .75% a few weeks ago. This means that the banks cut their lending rates, and it looks like the rates are going to go down again.
Initially most news outlets were saying that the banks were only going to cut the variable rate down but some banks have announced plans to cut 3-5 years mortgage rates.
So what does this all mean?
Well it should spark the market which looked like it was taking a downturn and it still may take a down turn. If you don’t have a job, it doesn’t matter what the rates are, you can’t pay a mortgage, and you will have to sell your house.
In the meantime, the bank of Canada will try this tactic to ease the economy slowing, and the next step is easing CMHC rules, and some other housing rules that have been changed in recent years to tighten up the market.