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  • Keith&Jacqueline

When Will Rates Come Down?

As we all know, the bank of Canada, maintained their overnight rate last week. Economists and the market are predicting that hopefully by the summer we’ll start to see a decrease in the prime interest rate.

What’s interesting though is that since the beginning of the year, we’ve seen fixed rates, continuously decreasing. Right now we’re seeing fixed rates range from the high fours to low fives.

This is great for two reasons: one, a lower rate improves your monthly cash flow and 2, with the lower interest rate, you have a lower stress test rate. This means you can qualify for a higher purchase price and mortgage amount.

It’s interesting to note that fixed rates are funded off the bond market and the bond market has been relatively stable the last few months. this means that the discounts we’re seeing on fixed rate mortgages are coming directly from lenders. Lenders are open and they and they are hungry for business.

No mortgage is created equal, so if you’re not sure whether to go fixed or variable, book a call and we can explore your options.

Book a call at

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