What does drop in interest rate mean if you are buying/selling a home?
By Anne Lok, Toronto Modern Real Estate
(Berkshire Hathaway HomeServices Toronto Realty)
Yesterday, Bank of Canada lowered the overnight rate for the second time this year by .25% due to a weaker than expected economy in the first two quarters. What does that mean if you are shopping for a new home or planning to sell and buy a home? The common questions is whether the drop in interest rate will fuel the already heated market and drive up consumer debt? This could mean that more people will be able to afford to buy, so margin borrowers can buy more house so-to-speak, or in a better position to enter the housing market. Next, will be to see how all the chartered banks reacts with the news to adjust their current lending rate. TD was the first to jump on lowering their prime by 10bp at 2.75%. The Canadian economy is contracting blaming slower global growth and low oil pri...
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