The Bank Of Canada has lowered its overnight target rate by 50 basis points - down to 1.25 percent, which is the lowest that it has been since the recession in 2008. This is due to the dears of a deepening economic downturn caused by the coronavirus and copying a rate drop that the U.S. Federal did.
This, in turn, is expected to push the banks to lower their mortgage rates, with some of the big banks leading the way. This comes just in time for the spring housing market, which in many markets (including Ottawa) is already crazy to begin with.
Many are expecting the Bank Of Canada to announce another 25 point rate cut next month, and another rate drop before the end of the year. If it goes as expected could see the overnight rate down to 0.75%!
For those who are thinking about buying or getting into the market, this is the time to speak to your mortgage broker!
