The Bank of Canada has reduced its key interest rate to 3.25 per cent, which is great news for people with mortgages coming due, or those in the market for a financial product such as a car loan.
That’s according to David Buckingham, V-P with Janes Noseworthy Insolvency Trustees in St. John’s.
He says the reduction in interest rates may not have as profound an effect in this province as in downtown Toronto, simply due to the cost of housing.
David Buckingham. (VOCM News)
Buckingham says residents of Newfoundland and Labrador are doing everything they can to keep their homes, and everything to keep payments current.
He says people who take out a second mortgage at a very high interest find themselves in a tougher spot.
Buckingham says those who have expensive lines of credit will be some of the first to benefit from lower costs of borrowing.
“Anyone who’s up for mortgage renewal, now would be a good time to discuss things with your mortgage broker and to see if it would be a good time to renew and lock in.”
Larry Short of Short Financial says he’s delighted to see the latest interest rate cut, given the cooling economic climate.
“It’s very rare to see half-a-point cut any time, but to see two in a row back-to-back like this gives an indication of how serious the central bank is about stimulating growth back into Canada.”
