Bank of Canada Rate Cut and Tariff Impact: Mortgage Expert Predicts Opportunities for Canadian Homeowners

Amidst concerns of a potential recession in Canada, a mortgage expert suggests that recent economic pressures may create opportunities for homeowners. The Bank of Canada recently cut its overnight key lending rate by a quarter per cent to 2.75 per cent. Further rate cuts are anticipated, potentially bringing variable mortgage rates down to the mid-three per cent range. This is welcome news for approximately 1.2 million Canadians expecting to renew their mortgages this year, who had been anticipating rates in the five-to-six per cent range. Lower mortgage rates may also provide an opportunity for first-time buyers as the spring real estate market heats up. The Canadian Mortgage and Housing Corporation (CMHC) anticipates a rebound in housing sales and prices due to lower mortgage rates and changes to mortgage rules, unlocking pent-up demand.