The Bank of Canada lowered its overnight rate by .25%, in June, taking it to 4.75% and, with the next announcement by the bank coming on July 24, at least one market watcher thinks another drop of .25% is in the cards. “The Bank of Canada has been clear that they’re taking a data dependent approach with their rate decisions, and the latest economic reports, such as June CPI and consumer surveys, have cemented high expectations of another quarter-point cut on July 24,” says Penelope Graham, a mortgage expert at Ratehub.ca. “Inflation easing in the US has also opened the door for American rate cuts as early as September. This provides the Bank of Canada further assurance that it can continue to cut rates without risks to our currency, or further sparking inflation.” Graham says bond markets have responded positively to inflation rates, increasing optimism central banks are better positioned to cut rates. “As a result, some lenders have lowered their fixed mortgage rates, and more discounts are likely should investor sentiment persist,” she says. There were concerns in some quarters the bank’s rate cut in June would create a stampede of home buyers in July, but it looks like the only Stampede in July was in Calgary. “The impact of the Bank of Canada’s first rate cut on housing markets has been minimal. The latest national real estate data indicates a short-term increase in sales in June,” says Graham. “However, most buyers are clearly waiting for rates to lower further before returning to the market. This has prompted the Canadian Real Estate Association to revise its forecast for this year and next, to account for slower buyer demand.” Graham suggests anyone thinking of buying a home in the next three months or so may want to consider getting a mortgage preapproval. “Mortgage rates in general are trending lower, which means it’s a great time for rate shoppers to get a pre-approval. This secures their rate for up to 120 days, and protects them in case rates unexpectedly rise in the near future,” she says. “As the mortgage market fluctuates, choosing the best rate type for your needs can be confusing.” “While it may be tempting to get a variable mortgage rate when cuts seem likely, it’s important to take your personal risk tolerance and financial situation into account. If we’ve learned anything from the Bank of Canada in the last few years, it’s that nothing is certain when it comes to rate direction.” “While lower interest rates will be welcomed by mortgage borrowers, it’s not a cheerful scenario for passive investors and savers whose returns fluctuate with Canada’s prime rate. Those with Guaranteed Income Certificates (GICs) and high interest savings accounts will see their earnings lower should the Bank of Canada implement a cut this month.” A rate cut on July 24 will be followed by cuts to variable rate mortgages, says Graham. “If the Bank announces a 25 basis point decrease, using Ratehub.ca's mortgage payment calculator and the average home price in Alberta in June, a homeowner who put a 10% downpayment on a $503,502 home, with a five-year variable rate of 5.70% amortized over 25 years, with a total mortgage amount of: $467,200 has a monthly mortgage payment of $2,906,” she says. “If the Bank of Canada announces a 25-basis point rate decrease, the home owner’s variable mortgage rate will decrease to 5.45% and the monthly payment will decrease to $2,838.” “This means that the homeowner will pay $68 less per month or $816 less per year on their mortgage payments.”.This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
The Bank of Canada lowered its overnight rate by .25%, in June, taking it to 4.75% and, with the next announcement by the bank coming on July 24, at least one market watcher thinks another drop of .25% is in the cards. “The Bank of Canada has been clear that they’re taking a data dependent approach with their rate decisions, and the latest economic reports, such as June CPI and consumer surveys, have cemented high expectations of another quarter-point cut on July 24,” says Penelope Graham, a mortgage expert at Ratehub.ca. “Inflation easing in the US has also opened the door for American rate cuts as early as September. This provides the Bank of Canada further assurance that it can continue to cut rates without risks to our currency, or further sparking inflation.” Graham says bond markets have responded positively to inflation rates, increasing optimism central banks are better positioned to cut rates. “As a result, some lenders have lowered their fixed mortgage rates, and more discounts are likely should investor sentiment persist,” she says. There were concerns in some quarters the bank’s rate cut in June would create a stampede of home buyers in July, but it looks like the only Stampede in July was in Calgary. “The impact of the Bank of Canada’s first rate cut on housing markets has been minimal. The latest national real estate data indicates a short-term increase in sales in June,” says Graham. “However, most buyers are clearly waiting for rates to lower further before returning to the market. This has prompted the Canadian Real Estate Association to revise its forecast for this year and next, to account for slower buyer demand.” Graham suggests anyone thinking of buying a home in the next three months or so may want to consider getting a mortgage preapproval. “Mortgage rates in general are trending lower, which means it’s a great time for rate shoppers to get a pre-approval. This secures their rate for up to 120 days, and protects them in case rates unexpectedly rise in the near future,” she says. “As the mortgage market fluctuates, choosing the best rate type for your needs can be confusing.” “While it may be tempting to get a variable mortgage rate when cuts seem likely, it’s important to take your personal risk tolerance and financial situation into account. If we’ve learned anything from the Bank of Canada in the last few years, it’s that nothing is certain when it comes to rate direction.” “While lower interest rates will be welcomed by mortgage borrowers, it’s not a cheerful scenario for passive investors and savers whose returns fluctuate with Canada’s prime rate. Those with Guaranteed Income Certificates (GICs) and high interest savings accounts will see their earnings lower should the Bank of Canada implement a cut this month.” A rate cut on July 24 will be followed by cuts to variable rate mortgages, says Graham. “If the Bank announces a 25 basis point decrease, using Ratehub.ca's mortgage payment calculator and the average home price in Alberta in June, a homeowner who put a 10% downpayment on a $503,502 home, with a five-year variable rate of 5.70% amortized over 25 years, with a total mortgage amount of: $467,200 has a monthly mortgage payment of $2,906,” she says. “If the Bank of Canada announces a 25-basis point rate decrease, the home owner’s variable mortgage rate will decrease to 5.45% and the monthly payment will decrease to $2,838.” “This means that the homeowner will pay $68 less per month or $816 less per year on their mortgage payments.”.This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
