Canada’s economy outperformed expectations in late 2024, with GDP growing at an annualized 2.6%—well above the 1.7% forecast. Household spending, fuelled by lower interest rates and a temporary sales tax holiday, played a major role in this growth. But despite these positive signs, potential U.S. tariffs could put a damper on economic momentum in 2025.
Will the Bank of Canada Cut Rates?
Economists are divided on whether this strong GDP data will impact the Bank of Canada’s decision on March 12. While a healthy economy typically suggests holding off on rate cuts, uncertainty around global trade, particularly potential tariffs from the U.S., could push the central bank to provide more economic support with a rate cut.
What This Means for Homebuyers
For those considering buying or refinancing, this uncertainty highlights the importance of staying ahead of rate changes. If tariffs slow the economy, we may see more aggressive rate cuts, making mortgages more affordable. On the other hand, if economic growth holds steady, rates may not drop as quickly as some expect.
At TopRankinMortgages, we stay on top of market trends to help our clients make informed decisions. Whether you’re locking in a rate or exploring your options, our team is here to guide you.
