Surprisingly dovish language in its accompanying statement, meanwhile, has raised hopes that another cut could be on the way in the Bank’s next decision on rates, scheduled to take place on July 24.

Further rate cuts likely to be steady rather than spectacular

Canada’s mortgage industry has long wondered what impact one or more cuts could have on the country’s housing and mortgage markets, which have faced a protracted cooldown since the beginning of the central bank’s rate-hiking journey.

Speaking to Canadian Mortgage Professional prior to the Bank’s June announcement, Jessica Kuan (pictured top), senior partner and residential mortgage broker with Signature Mortgages (a division of Clear Trust Mortgages), said the onset of rate cuts could see demand increase and buyers step off the sidelines.

Still, she emphasized that with the Bank likely to take a measured approach to rate cuts, there seemed little prospect of a big imminent decline in rates.

“I don’t think that the Bank of Canada is going to cut rates substantially,” she said. “A rate cut from the Bank of Canada will have a direct effect on the variable rate, [and] it’s not going to bring that variable rate down substantially… I think it will heat up the market. But I do think that borrowers should expect to be in a high-rate environment for a longer period of time.”

Houses for Sale Ottawa under $400 000

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