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Could We See Mortgage Rates Lower Than 2% This Year?

Two banks, TD & CIBC, have now forecasted that the Bank of Canada will, again, lower the Prime lending or Benchmark rate by another .25%. If this happens and banks and lenders follow suit then we could see variable rate mortgages for less than 2% again. The last time this happened was at the beginning of the "Great Recession" about 6 year ago.
 
Will these lower rates spur the housing market even more? According to a recent article on MortgageNews.ca reporting on a recent survey by Bank of Montreal, they will indeed.
 

See the full article below...

 
"More Canadians are considering become homeowners as lower interest rates make it even more attractive. With rents higher and mortgage rates lower almost half of all those surveyed said they were thinking of getting on the property ladder in the next five years and among the younger demographic that figure was 75 per cent. The Bank of Montreal report shows that 15 per cent of those thinking of buying are doing so as a direct result of the Bank of Canada’s rate cut. The lower oil prices are also playing a part with those in Ontario and Atlantic Canada feeling particularly upbeat about finances thanks to lower gasoline prices. However for many households the survey shows a focus on cutting existing debts rather than taking on new ones."

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  • Will Pratt
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