Published: July 27th, 2024 • Last Updated: August 6th, 2024
Author: Ayesha on AskRoss.ca

How BoC Rate Cuts is Shaping Mississauga’s Real Estate Market

For our full and in-depth look at the latest Bank of Canada rate cut and its implications, be sure to read my detailed analysis here. This article offers key insights into how the recent reduction to 4.5% could affect you as a homeowner or investor.

Mortgage Renewals & Refinancing

With the Bank of Canada’s recent decision to lower interest rates, it’s an opportune time to consider your mortgage renewal or refinancing options. To be honest, it’s very likely your present mortgage rate is much lower than the rates currently on offer. But rates are undoubtedly off their peak quite a bit. Since the Fall of 2023, fixed mortgage rates have dropped roughly 1.5%, and variable rates have dropped by 0.5% and counting since the first rate drop in June 2024.

Refinancing could provide a chance to consolidate debt under more favourable terms. You can do a few things with a refinance, including:

1) Increase your mortgage, rolling in some high-interest unsecured debt into your mortgage at a rate quite possibly in the high 4’s.

2) Extend your amortization period back to as much as 30 years to reduce payment shock resulting from rates higher than you had before.

For detailed guidance on how this rate cut could benefit your specific situation, check out my full analysis on renewals and refinancing in our latest article here.

Mississauga’s Real Estate Market Overview

Since the Bank of Canada’s two recent rate cuts, Mississauga’s real estate market has reacted with cautious optimism. This response reflects broader economic uncertainties and concerns about job stability, which continue to influence buyer confidence and decision-making.

Hopefully, as economic factors stabilize, the positive impacts of the rate cuts may become more pronounced, potentially leading to an increase in Mississauga’s market activity​.

BoC Rate Cut Impact on Affordability

The anticipated boost in affordability from lower interest rates has yet to translate into a significant rise in home purchases. Average home prices have not changed much, though listings are up, and borrowing costs remain high, which continue to weigh heavily on consumers’ home-purchasing decisions.

Consumer Outlook – What Lies Ahead

Optimism is growing, and Mississauga might soon see a rebound in its real estate market. Prospective buyers should stay informed and ready to capitalize on opportunities as they arise, keeping abreast of rate changes and their potential impacts.

If you’re curious about what economists are predicting for further rate cuts in 2024 / 2025, read our article for the latest insights.

Our July 2024 Newsletter

Canadians should stay informed about future rate changes and consider how these shifts might impact their financial decisions. We publish a comprehensive and informative newsletter every month. Our goal is to keep our clients and readers informed about Canada’s real estate, economy, and rate changes. These letters are read by thousands of Canadians each month. Read July’s newsletter here.

Advice From Ross Taylor Mortgages Mississauga

Stay proactive! If your mortgage renewal is approaching, now is the perfect time to explore your options to ensure you are getting the best possible terms. With the recent rate cuts by the Bank of Canada, we might find opportunities to improve your current and long-term finances.

As always, I encourage you to reach out to us with any questions or personalized guidance you need for your unique situation. Our expertise is here to support your real estate decisions in Mississauga’s evolving market. If you have any questions or want to consult with one of our award-winning mortgage professionals, book your free consultation today.

Together, we can assess your current mortgage, discuss potential refinancing options, and ensure you benefit from the most favourable terms available.