The Bank of Canada has lowered its benchmark interest rate by 50 basis points to 3.75%.
This marks the fourth rate cut in 2024 (so far), making it the largest reduction since the pandemic (March 2020).
How Does The Rate Cut Affect Homebuyers & Sellers in Windsor & Essex County? For potential homebuyers in Windsor-Essex, this could be the catalyst to step (back) into the market, as reduced rates tend to increase both consumer confidence, and borrowing capacity resulting in more options for buyers. This is great news for sellers as well, as we may see increased activity in a market that has been a little slower lately in Windsor-Essex, especially in the higher price points. It’s not out of the question to see a rise in home prices as more buyers resume their plans to purchase, spurred by greater affordability.
In addition to the rate cuts, there have been several (upcoming) mortgage rule changes that also benefit both buyers and sellers:
- Updated Mortgage Stress Test Rules: Borrowers renewing their mortgages with a new lender will no longer need to undergo a stress test. This opens up more options for homeowners looking to refinance or switch lenders, increasing flexibility and competitiveness in the market.
- Support for Multi-Generational Homes: Mortgage rule changes now provide more flexibility for down payment requirements for multi-generational homes, making it easier for larger families to afford suitable properties.
- Expanded Refinancing Options: Homeowners now have greater access to their home equity, giving them financial flexibility for renovations, investments, or consolidating other debts.
- New Rules for Secondary Suites (ADU): Changes will provide more financing options for those looking to add income-generating rental units to their properties.
- Increasing the $1 million price cap for insured mortgages to $1.5 million and expanding eligibility for 30 mortgage amortizations to all first-time homebuyers
If you have any questions or would like to discuss how these changes might impact your property in Windsor and Essex County or future homebuying plans in the Essex County region, please feel free to reach out to The Dan Gemus Real Estate Team Ltd., Brokerage. Our team of experienced and full time REALTORS are here to help 7 days/week!
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