Financial Expert: Frozen interest Rates Good for Home Buyers

Dated: January 26 2019

Views: 53

Earlier this month it was announced that the Bank of Canada was freezing interest rates. 

Local financial experts are weighing in on the matter, saying one area that could benefit from this is the housing market if you're looking to buy. 

"From the latest reports we saw coming out, even though inflation was up in December to 2%, which is up slightly from November, we're still seeing the government and the Bank of Canada believing 'we got to slow this down a little bit; if we raise this too quickly it's going to squash the growth that we're starting to see in the country,'" explained Aaron Ruston of Purposed Financial in Moose Jaw. "With some of the changes that have come on, for instance, the new PST on new builds and that type of thing, it's really pushed them down. Interest rates rising have certainly slowed down purchases as well, but also remember they have new rules now to qualify for mortgages. You not only have to qualify at the going rate, but you have to qualify also at that plus 2% or more above."

Ruston noted that when we see changes like this it typically has to do with our economy and at what rate we're growing. 

"When the government increases the interest rates really what it's doing is slowing the economy down. They're trying to say 'hey you know what, inflation is growing at a more rapid pace; we need to slow this whole thing down.' We did anticipate them flattening out the increases. That being said there's still a belief that in the third quarter, maybe the end of the second, they might pop them up again."

He said they're advising their clients that if they were thinking about buying, now is the time to take the plunge. 

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Steven Axford

Steve Axford grew up in Victoria, BC and has always been active in his community. Steve is a Victoria Cougars Hockey Team alumni as well as a Victoria Shamrocks (intermediate) alumni. During his time....

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