The month of May was quite interesting for the Toronto real estate market, with prices experiencing a slight month-over-month increase but reflecting a 2.5% decline compared to the same time last year. The market may be showing early signs of softening, yet the impact of the Bank of Canada's recent interest rate cut remains to be seen. For those considering a condo purchase, now may be an opportune time to explore the market, as inventory levels for condos are notably high, resulting in many options for buyers.
Join Alex as he provides his insights on what we are seeing in Toronto Real Estate Market, as he breaks down the latest stats released by TRREB.
Mortgage Rate Report
From Sean Smith of Dominion Lending
The Bank of Canada has cut the overnight lending rate by .25%!
This will impact variable rate holders only, which include HELOC products. Bond yields have reacted positively, but we haven't seen a significant decline which means fixed rates arent coming down dramatically at the moment.
A few highlights:
The BOC cut the overnight lending rate by .25% which now sits at 4.75%.
Most bank prime rates go from 7.20% down to 6.95%. With the exception of some banks going from 7.35% down to 7.10%.
This means variable rate and line of credit borrowers can see a reduction in the interest portion of their payments.
This will reduce mortgage payments by about $16/month per $100,000.
On a $1,000,000 mortgage, borrowers can expect a reduction of about $162/month.
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