BC Housing and Mortgage Insights Newsletter December 18, 2024
Canada’s housing market is seeing big changes. The Bank of Canada cut interest rates to 3.25%, offering relief to mortgage holders, while new federal mortgage rules starting December 15 aim to improve affordability. First-time buyers gain access to 30-year amortizations, and higher insured mortgage caps make home ownership more achievable. Combined with growing demand in markets like B.C., these changes are expected to heat up real estate activity heading into 2025.
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Bank of Canada Interest Rate Drop Good News for Mortgage Holders
The Bank of Canada has lowered its key interest rate by 50 basis points to 3.25%, offering relief to variable-rate mortgage holders. While the move could boost home sales and affordability, it also signals concerns about economic uncertainty, rising unemployment, and slower growth ahead.
New Mortgage Rules Take Effect December 15, 2024; More May Be Coming
As of December 15, new mortgage rules are in place to ease affordability concerns for first-time buyers and boost housing supply. Key changes include expanded 30-year amortizations and an increased insured mortgage cap. More housing-related measures could follow in next week’s Fall Economic Update.
What to Know About Canada's New Mortgage Rules, According to a Broker
Starting Sunday, first-time buyers can benefit from extended 30-year amortizations, lowering monthly payments and increasing affordability. On January 15, homeowners can refinance to fund secondary suites. While these changes help buyers enter the market, they may lead to higher long-term borrowing costs.
New Mortgage Rules, Interest Rate Cuts Expected to Heat Up B.C. Real Estate Market
B.C.’s real estate market is set for a boost as new mortgage rules take effect Sunday alongside recent interest rate cuts. Lower down payments and extended amortizations improve affordability, while pent-up demand and growing confidence could drive higher sales heading into the spring market.
