Canadian market players are anticipating that the central bank will begin cutting its benchmark policy rate on April 2024, according to a new survey by the Bank of Canada.
— Canadian Mortgage Professional Magazine (@CMPmagazine) November 8, 2023
While the central bank has held its benchmark rate steady in its last two announcements, it’s emphasized its willingness to hike again if economic trends don’t play out as expected – but leading economists have signalled in recent weeks that rate cuts are expected to arrive at some point in 2024.
Once the Bank signals its rate hikes are at an end, Dasgupta said, “that offers your clients that are looking to buy homes clarity and certainty. That clarity and certainty will bring them off the sidelines and back onto the playing fields.”
Meanwhile, the importance of keeping in touch with clients who purchased homes in recent years can’t be overstated, according to Dasgupta, particularly with higher interest rates and the cost-of-living crisis having caused significant stress for many Canadians.
“Don’t forget about the people that you… helped get mortgages over the last 12, 18, 24 months,” he said. “Make sure that you’re continuously in contact with them and talking to them about how their finances and their financial needs have changed over this period of time.
“How can you help provide them options, solutions, restructuring? There are many things that we can do for Canadians that purchased homes a few years ago.”