A rate cut next week looks all but certain. Could more be on the way?
Canada’s economic landscape is shifting, and mortgage holders could soon benefit. With the Bank of Canada expected to lower its key interest rate to 2.75% next week, borrowers might see some much-needed relief after months of high rates.
Why Is a Rate Cut Likely?
The latest employment data from Statistics Canada has fueled expectations of a rate cut. February’s job numbers were underwhelming, with only 1,100 jobs added, far below the projected 20,000. While the national unemployment rate held steady at 6.6%, this slowdown in job growth signals economic softness—giving the Bank of Canada more reason to ease rates.
Market confidence in a cut has surged, with odds jumping from 50% last week to 85% now. If the Bank follows through, it could be just the start, with analysts predicting additional rate cuts as early as April.
How Will This Affect Mortgage Holders?
If you’re a variable-rate mortgage holder, this could mean lower monthly payments in the near future. For those considering refinancing, a rate cut could open the door to better borrowing conditions. Fixed mortgage rates are already trending downward in anticipation, making this an opportune time to explore your options.
What’s Next?
With the March 12 rate announcement around the corner, all eyes are on the Bank of Canada’s next move. If economic uncertainty persists and inflation remains under control, further rate cuts could follow—potentially bringing the benchmark rate below 2.5% by the end of 2025.
If you’re wondering how this impacts your mortgage strategy, now is the time to talk. Whether you’re looking to secure a lower rate, refinance, or buy a home, we can help you navigate the shifting market.
Ready to get started? Contact us today for a free consultation.
