by Tim Lintick
on Wednesday, May 1st, 2019 at 1:04pm.
The Bank of Canada has just announced it will be holding its benchmark interest rate of 1.75% steady for the time being.
And that is GREAT news for home buyers all across Canada!
Given that all of us are coping with increasing gas prices (a record $1.78 per litre in Vancouver), increasing property taxes (nearly 3% in Barrie), and rising costs of most things overall (groceries, natural gas, electricity, water and wastewater), it is comforting to know that the cost of borrowing money to purchase a home to live in, raise our families in, share meals with friends in, will not go up.
In fact, some major banks are lowering their lending rates in a bid to encourage more people to apply for mortgages.
This, in the wake of the mortgage stress test that was introduced last year that forced so many people out of the housing market and into the rental market instead.
In fact, we understand that many lenders are now reportedly seeing the need for mortgages slow down significantly.
And after last year also saw several interest rate hikes, it is also a relief to see the Bank of Canada has come to its senses and finally put the brakes on any more increases.
For the next six weeks, anyway, which is how often the BOC makes its interest rate announcements.
Sure, the BOC says it's holding rates steady because our economy is not doing as well as had been predicted or expected.
And perhaps that's the case.
It often keeps interest rates steady or lowers them when it wants to stimulate economic growth.
Now, the bank is expecting that economic growth to stay even through the first half of the year.
It does expect the second half of the year to do better, and with that may come interest rate increases.
But for now, anyone looking for a mortgage may like to investigate the good deals that will likely be found out there by lenders.
If you have any questions, or need some help with your real estate needs, please don't hesitate to give The Way Home Team a call!