March 13, 2025 | Market Reports
BOC Lowers Interest Rates to 2.75% – Key Insights for Buyers and Sellers
This week, the Bank of Canada reduced its overnight rate by 25 basis points to 2.75%, marking the seventh consecutive rate cut since June 2024. This decision aims to support economic stability amid global trade uncertainties. Major bank economists predict the overnight rate could fall to 2% within months. [read more]
Impact on Buyers
- More Affordable Mortgages: Lower borrowing costs can encourage more buyers and investors to take action.
- Increased Purchasing Power: With reduced interest rates, buyers may qualify for larger loan amounts, allowing them to consider properties that were previously out of reach.
- Improved Affordability: Lower interest rates can make monthly mortgage payments more manageable, enhancing overall affordability for buyers.
Impact on Sellers
- Higher Demand: As borrowing becomes more affordable, more buyers are likely to enter the market, increasing demand for properties.
- Potential for Higher Selling Prices: With increased competition among buyers, sellers may achieve higher selling prices.
- Faster Sales: A more active market can lead to quicker sales, reducing the time your property remains listed.
Whether you’re considering buying, selling, or refinancing, now is an opportune time to explore your options.
Feel free to reach out to discuss how these rate changes can benefit you. I’m here to help you navigate this evolving market and make informed decisions.
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