Financial Expert: Frozen interest Rates Good for Home Buyers´╗┐

Dated: January 26 2019

Views: 128

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. 

Blog author image

Steven Axford

Steve is a award winning Realtor in Victoria BC, with his listings selling faster and for top dollar! Growing up in Victoria, BC and has always been active in his community. Steve is a Victoria Cougar....

Latest Blog Posts

Adapting Your Finances

The latest news has been focused on rising interest rates, surging inflation, and economic uncertainty with suggestions that the Canadian economy could be tripped into recession.With all this

Read More

Asking price matters

There’s no doubt about the fact that the housing market is slowing from the frenzy we saw over the past two years. But what does that mean for you if you’re thinking of selling

Read More

New Home Warranties in Strata Corporations

The BC Home Owner Protection Act requires that all newly built homes (including strata properties) or buildings that have been substantially reconstructed be covered by third-party

Read More

Shift in Victoria Real Estate market brings more time for buyers and sellers

A total of 510 properties sold in the Victoria Real Estate Board region this July, 38.9 per cent fewer than the 835 properties sold in July 2021 and a 16.7 per cent decrease from June 2022. Sales of

Read More