Date the Rate & Marry the House
Many of you are wondering: "Is now a good time to buy?"
There's this saying in the States that goes, "Date the Rate and Marry the Property". This means that you should consider buying while property prices are down, even though interest rates are higher. This is because you will invariably end up switching or refinancing into a lower rate in the near future, while owning the property for the long term.
The Bank of Canada is expected to end its current rate-hike cycle in the next couple of months. Economists are projecting a further 0.50 - 0.75% increase in Prime at the next couple of meetings before Prime remains stable for 2023 and then starts to decrease by the end of 2023 and into 2024. Economists are predicting a decrease of 1 - 2% in Prime during 2024 and 2025. Fixed rates are expected to decrease by the end of next year as well.
As always, if you have any questions at all, please reach out anytime.