Bank of Canada Mortgage Rate Announcement - November 2020
November 10, 2020 | Posted by:
Time for a follow up to our last press release regarding the Bank of Canada’s (BoC) announcement regarding the prime rate. The year is winding down fast which makes the recent news fairly important. After all, many of you are making some life changing financial decisions as Q4 of 2020 quickly becomes Q1 of 2021. What does the BoC have to say about the country’s economic future? How will their current announcement impact your decision making process when it comes to buying your very first home? Let’s review.
The Prime Rate Won’t Budge for the Remainder of 2020
This is no big surprise to most people, but you never know - the Bank of Canada has been known to throw some curveballs in the past. Of course, this year won’t be one of them, as the BoC has no intention of disincentivizing spending - especially when it comes to prospective home buyers. Slow real estate sales do little to improve economic confidence.
This news is not music to the ears of every first time buyer in Canada however. In many large cities (specifically Vancouver BC and Toronto Ontario) the average price of a detached home makes a purchase during an economic recession impossible for most, no matter how low the borrowing rates may be. But in Winnipeg, where the average prices of detached houses, town homes, and condos alike hover around the $300K area, the Bank of Canada announcement is as soothing as jazz.
New Buyers Have No Reason to Wait Any Longer (especially in Winnipeg)
As alluded to above, the time to buy in Winnipeg is now. Record low variable and fixed lending rates are wonderfully compounded by affordable home prices. But there is one cost you need to really consider if you’re thinking about waiting until later in 2021 - the opportunity cost.
Halloween season may be over but there are some scary things that can happen when you wait to get that mortgage. Rock bottom mortgage rates have no where to go but up in 2021. In addition, the huge opportunity for buyers will eventually result in a severely strained inventory, leaving slim pickings for those who procrastinate. If you want a dream home without having to break your bank this is the time to make it happen.
There simply has not been a better time to buy in recent history (we’re talking decades) than here in Q4 of 2020. Call Ron today at 204.290.9950 to capitalize on the most recent Bank of Canada mortgage rate announcement.
