Welcome back to another episode of Make Money Count! We are excited to share the latest updates on the economy and real estate market. In this episode, we cover the upcoming Bank of Canada policy rate decision, the current state of the real estate market, and tips for mortgage holders. Let’s dive in!

Episode Highlights

Bank of Canada Rate Decision: What to Expect

Today, the Bank of Canada is expected to announce a policy rate cut of 0.25%. This decision aims to foster the economy, which has been struggling with lower retail sales, fewer jobs, and declining real estate prices. With inflation moving in the right direction, the Bank has a good reason to lower rates. However, this single rate cut might not be enough. We expect more rate cuts to follow to help the economy recover fully.

Canadian Real Estate Market: Current Challenges and Future Prospects

The Canadian real estate market is facing tough times, with the number of listings and transactions at their lowest levels since the early 2000s. The Greater Toronto Area, in particular, is seeing very few sales, barely more than 20 years ago. Despite this, rents remain high due to strong demand from those who can’t afford to buy. As interest rates decrease, we expect a slow recovery in real estate activity, but significant rate cuts are needed to make housing more affordable.

Why Variable Rates Might Be Your Best Bet

For mortgage holders, a variable rate might be a smart choice right now. Bond yields are falling, indicating that more rate cuts are expected. While fixed-rate mortgages provide stability, the potential for further rate reductions makes variable rates more appealing in the short term. At Cannect, we offer the lowest 5-year fixed rates in Canada, ensuring you get the best deal.

As we await the Bank of Canada’s rate announcement, it’s clear that the economy needs careful management to navigate these challenging times. Stay informed and make smart decisions to protect and grow your finances. At Cannect, we are here to support you with expert advice and competitive mortgage solutions. Thank you for tuning in, and don’t forget to like and subscribe to our YouTube channel for more valuable insights!