In case you missed it, earlier this month the Bank of Canada lowered interest rates, sparking discussion in the world of real estate. How will this affect you?
The lending rate dropped to 0.5 percent, from 0.75 percent, and some banks began to follow suit by dropping their prime rates, which means you could save money on a mortgage, and every little bit of saved interest helps with mortgage payments and paying down your principle. Lower interest rates tend to cause a spike in home purchases as buyers look to save money, potentially causing competing bids for the new home that catches your eye. Current home owners may look at refinancing to take advantage of lower rates. On top of that, developers may look at borrowing more money for their projects – and in Penticton this month we’ve seen announcements of new condo and townhouse developments – or possibly offer better deals on their brand new properties to entice more buyers.
What does this mean for you?
It’s good time to consult an expert for advice. Your financial planner, mortgage broker, or realtor can provide much-needed analysis for any type of buyer or seller.
Thinking of downsizing? In this market, lower rates may mean competition for your current home (and a higher sales price), and savings on new townhouse or condo.
First time buyer? Getting a lower interest rate is in your favour to get you into your first home.
Looking for a vacation home in the Okanagan? It’s a good time to invest.
Whatever your situation, contact us, our team will help you navigate.