Toronto, Canada, November 6, 2015 – Canadalend.com , the leading low-cost, private mortgage solution provider in the country, comments on the Bank of Canada’s decision to leave its key lending rate at 0.5% and the impact this move will have on Canadian real estate.
On October 21, the Bank of Canada, led by Stephen Poloz, announced it was keeping its key lending rate at 0.5%. The bank has already lowered its trend-setting interest rate twice in 2015 in an effort to stimulate the Canadian economy: once in January and July.
While the Canadian economy rebounded in July, the bank lowered its economic outlook for the country. The Canadian economy is projected to climb just one percent in 2015 and two percent in 2016. (Source: bankofcanada.ca, press release, “Bank of Canada maintains overnight rate target at 1/2 per cent,” October 21, 2015; http://www.bankofcanada.ca/2015/10/fad-press-release-2015-10-21/)
“Decisions made by the Bank of Canada are important for those looking to step onto the property ladder, refinance their mortgages , consolidate debt. That’s because the central bank’s lending rate impacts what the banks charge borrowers,” says Bob Aggarwal, President of Canadalend.com. “The bank will meet next to decide on interest rates on December 2nd, but with recent downgrades on the Canadian economy, there is no reason to think the bank will raise rates any time soon.”
Despite the economic downgrades, the Canadian housing market remains robust; in part because of the low interest rates. Canadian housing starts surged in September while new home prices also beat forecasts in August. On top of that, resale real estate prices and sales remain strong across the entire Greater Toronto Area; where transactions hit a record in September and sales climbed 9.2% over the same period in 2014. (Source: torontorealestateboard.com, press release, “GTA Realtors Release Monthly Resale Housing Figures,” October 5, 2015; http://www.torontorealesta teboard.com/market_news/release_market_updates/news2015/nr_market_watch_0915.htm.)
“The expanding economy coupled with a balanced housing market, and rising prices, points to sustained real estate growth and great opportunities for home ownership,” Aggarwal concludes.
Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent, licensed professionals helping Canadians coast-to-coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and addressing financing concerns. To learn more about Canadalend.com, visit the web site atwww.Canadalend.com .