The urbaneer team is delighted to share with you our latest press!
We were fortunate enough to be interviewed recently by Thomson Reuters Press for our insights on the Bank of Canada interest rate shocker yesterday - which resulted in this informative article on reigniting Toronto's housing market with interest rate cuts.
urbaneer's own Steve Fudge explains the direct impact on the Toronto market as a result of this rate cut: "This means everyone is going to get back in the saddle and we're going off to the races again. It creates a sense of relief that we haven't seen the top of the market."
This rate cut took everyone by surprise - including numerous analysts who have long been proclaiming rate hikes, given the extended period of the low interest rate environment (this marks the first activity from the BOC since 2010!).
So - what does this mean for house hunters? Even a marginal dip in the rates will translate into being able to stretch those mortgage dollars just that little bit further, which can come in handy if embroiled in one of the many bidding wars that have recently characterized the Toronto Housing market.
For instance, as Steve said in the article: "Those buyers who were capped at C$800,000, this will allow them to go to the C$850,000 that they really need to go to today, that tipping point in this housing market that makes the difference in a bidding war."
Why has this rate cut appeared? You may have noticed that filling your car up is costly significantly less than it used to (which is one the one hand very welcome). However, oil is so entwined with the Canadian economy, the BOC is concerned that this drop in prices could pull the economy back a bit. Hence the lowering of rates, which is meant to spur borrowing and consumer spending.
While as of today mortgage rates haven't yet adjusted. You can be certain it's imminent. This article in The Globe and Mail - As Banks Hold Off On Cuts, Brokers See Record-Low Mortgage Rates - signals what's to come.
Will a mortgage rate cut offer a new opportunity for your house hunt? At urbaneer.com, we're here to guide you through the complexities of a real estate purchase. And if that means navigating the search and negotiations under the watchful eyes of your parents then all the better. It's what we do! Serving multiple generations of families for over two decades, we make your dreams of home a reality.
Curious to read more? Here is some other urbaneer press with another Reuters article that we were featured in on how parents are helping Canadian kids buy property.
~ Steven and the urbaneer team
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