Interest Rate Cut Welcome News for Homeowners With Variable-Rate Mortgages: Experts

Real estate experts say the Bank of Canada’s third consecutive interest rate cut will be cheered by those with variable-rate mortgages, but it could still be a while yet before lower borrowing costs translate into a meaningful boost to sales activity. “It’s good news that the Bank of Canada is continuing to lower the overnight rate, though we are not likely to see the effects in the housing market for quite some time,” said Ratesdotca mortgage and real estate specialist Victor Tran in a statement. “The reality is the math just doesn’t make sense for many people who want to purchase a home. Mortgage rates have not come down nearly fast enough to stimulate much activity in the housing market. It’s just not affordable for people.”...