Many people were already anticipating that the Bank Of Canada will raise interest rates in their September meeting, the only question was by how much?
I am sure by now you are well aware that the bank of Canada raised their interest rate by 75 basis points to bring the overnight rate to 3.25%.
The biggest takeaway from the announcement was that the bank of Canada said they will most likely need to tighten further in order to bring inflation down.
What does that mean? Based on most predictions from economists from the top 6 banks, we should be expecting another 25 or 50 basis point increase until the end of the year.
So what does all this mean for your plans to buy sell or invest? Well if you are a buyer, your affordability will decrease based on this higher interest rate. If you are a seller, you may notice that you are not getting the same offers as you were before the interest rate hike due to lower buyer affordability.
If you are an investor, this may be one of the best opportunities to get into the market as prices have come down 20-25% in most cities however rental rates have skyrocketed.
Overall, my advice never changes. The best time to buy, sell or invest is when you are good and ready and the timing works for you and your family.
We are getting extremely close to the bottom of the market when it comes to prices and extremely close to the end of interest rate increases. That means that we will have a more balanced market in the near future.
