Despite the Bank of Canada upholding interest rates at a decades-high of 5.0 per cent, the President and CEO of the Real Estate and Mortgage Institute of Canada (REMIC) anticipates a potential rate reduction by the first or second quarter of the next year. However, he acknowledges that offers little solace to those facing imminent mortgage renewals.
The Bank of Canada held the line on interest rates last Wednesday. While the hold on interest rates was widely expected, it is still the highest rate in decades.
Joe White describes the announcement as positive news, stating that while the decrease might not be substantial, there is an expectation for rates to drop by the first or second quarter of the upcoming year.
White acknowledges that the world is fluid and circumstances can change, but he is optimistic that by 2025, the country will be in a significantly better position.
However, he recognizes that this outlook may not provide much comfort to those who are looking to renew their mortgages in the near term and are potentially facing a substantial rise in mortgage payments.
White says someone who is willing to go to a mortgage broker has access to so many different rates and products as opposed to taking the first offer from their bank. He says this is a prime example of when and why to use a mortgage broker.