As expert mortgage brokers in Quebec, we closely monitor the Bank of Canada's (BoC) interest rate trends and their impact on the real estate market. The BoC's decision on January 24th to keep its key rate at 5.00% raises questions. When can we expect a reduction in interest rates? Let's analyze the outlook for 2024 together.

BoC Maintains Key Rate: Implications for Mortgage Borrowers

The BoC has kept its rate at 5.00%, reflecting a restrictive level aimed at controlling inflation. Although inflation is decreasing, it remains high, directly affecting the cost of living and mortgage rates in Canada. As Quebec mortgage brokers, we understand that this situation continues to put pressure on Canadian households.

Prospects for Interest Rate Reduction: When and How?

Signs of a possible BoC interest rate reduction are there, but the question remains: when will this occur? The BoC is assessing the risks of a reduction that is too rapid, which could stimulate demand and exacerbate inflation. A rebound in the housing market could also increase housing costs, influencing mortgages and rents.

Impact on the Real Estate Market and Mortgage Loans

The BoC's uncertainty about the interest rate reduction schedule directly impacts the real estate market and borrowing costs. As experienced mortgage brokers, we remain attentive to developments to advise you best on your real estate projects.
The situation with interest rates in Canada remains complex and ever-changing. Marie Pier Hinse & Raphaël Gauthier-Leclerc, Mortgage Brokers affiliated with Planiprêt, commit to providing you with up-to-date information and personalized advice for your mortgage needs. Contact us for expert advice tailored to your situation.