Q4 2023 Economic Snapshot: A Ray of Hope

In the final quarter of 2023, the Canadian economy exhibited resilience, recording a 1% expansion on an annualized basis. This positive trajectory followed a contraction in Q3 2023, marking a noteworthy recovery.

Anticipating Interest Rate Cuts: A Closer Look

Expectations are brewing that an interest rate cut could materialize in either April (April 10) or June (June 5). This potential move has captured the attention of many, especially considering that 56% of Canada's adult population has delayed their property search due to higher interest rates.

The Sidelined Homebuyers Dilemma: A Recap

A recent Royal LePage survey echoes this sentiment, revealing that 56% of Canadians have put their property search on hold due to rising interest rates. Interestingly, 51% of them express a willingness to re-enter the market if interest rates reverse.

The Timing Conundrum: June Emerges as a Frontrunner

While the Bank of Canada announced rate remains unchanged decision on March 6, economists lean towards June for the first rate cut

Challenges for Homeowners in the Wake of Higher Rates

The central bank's research estimates that nearly 80% of borrowers renewing a mortgage may face significantly higher payments by the end of this year. A survey reveals that homeowners are feeling the strain, with almost 70% finding it more challenging to pay their mortgages since the rate hikes began in March 2022.

Choosing Stability in a Dynamic Market

As speculations about rate cuts loom, borrowers are expressing a preference for stability. Almost 30% plan to refinance their mortgages, with fixed-rate mortgages remaining the preferred choice. Homebuyers, when re-entering the market, show a similar inclination, with 44% aiming for a four-year or five-year fixed-rate mortgage.