The ability to afford a home is getting worse, according to federal records, but some may interpret Wednesday’s rate cut as a sign that now is the time to commit to buying a home because many households will likely be able to afford a mortgage. Interest rates cuts can make things like mortgage rates or the rate on an auto loan lower for new buyers or those who have rates that are not locked in place.
Today’s trim will not surprise anyone. It’s a move to revive an increasingly beleaguered labour market that’s limped through a summer of job losses,” says personal finance expert Shannon Terrell at NerdWallet Canada in a statement.Federal records show the ability to afford a home is getting worse, but some may see Wednesday’s rate cut as a sign that now is the time to commit to buying a home because having a mortgage will likely be more affordable for many households.
Interest rates cuts can make things like mortgage rates or the rate on an auto loan lower for new buyers or those who have rates that are not locked in place.
“No one will be surprised by today’s trim. It’s a move to revive an increasingly beleaguered labour market that’s limped through a summer of job losses,” says personal finance expert Shannon Terrell at NerdWallet Canada in a statement.However, some experts say that even though real estate may seem more attractive now, that doesn’t mean that there is any less risk.
Bank of Canada delivers 1st interest rate cut since March
