https://globalnews.ca/news/10246847/bank-of-canada-rate-decision-jan-2024/

The Bank of Canada (BoC) today announce what most industry professionals had expected. As one of Heller Murch Realty's trusted Mortgage Advisor Jeff Fraser stated however is the tone and the message that Tiff Macklem deliver today. The Bank of Canada are shifting from a view that is what we are doing with raising rates enough to a viewpoint that indicates that the rate increases have worked. The BoC is now looking at how long they need to hold the rate to keep inflation on track towards the 2% inflation rate they are targeting in mid-2025. 

When will things shift towards reducing the interest rate? That really depends on which economist you listen to. Even prior to this announcement the most optimistic source was still suggesting as early as March or April, while the more pessimistic economists were indicating June or later. 

What does this mean to you? Regardless of whether you intend to keep your current owned property or whether you are considering a move towards a purchase it may be time to start talking with a mortgage advisor. For those that intend to stay coming up with a financial plan especially if you are a few years into a fixed rate mortgage is a great idea to ensure you are prepared for the rates when your fixed mortgage is up for renewal. For those looking to buy or sell expect a large uptick on market activity. The positive outlook from the BoC will likely shift those that have been waiting to start to consider selling. Although we have seen longer absorption rates on properties, we haven’t seen a lot of options for buyers that are decerning. I expect we will see more homes come up in the Fraser Valley, along with the prices creeping up as we enter the spring. 

If you would like to discuss the market or would like some options on whom I recommend speaking with about Mortgage options, please give me a call at 778.808.1000.