Market Watch

On March 6, the Bank of Canada (BoC) held its policy interest rate at 5%,¹ the same level it’s been since July 12, 2023. The next interest rate announcement is scheduled for April 10.

According to the BoC,² its Governing Council members were especially concerned that shelter price inflation, which includes mortgage interest, rent and other housing-related costs, continues to keep overall inflation levels above target, even as other inflationary pressures in the Canadian economy gradually ease.

In the Spotlight – Navigating the homebuying market

Spring is finally here, which means the “homebuying season” is underway. With the global pandemic, soaring inflation, rising interest rates and the threat of recession, it’s been a tough few years for prospective homebuyers.

As well, existing homeowners whose last mortgage term was set when interest rates hovered at all-time lows, are in for a shock when it’s time to renew. Their mortgage payments will likely be much higher, which could strain already tight family finances. If your mortgage is up for renewal, consider working with an Alterna Mortgage Specialist to determine which term best matches your life and financial circumstances. Given that you’ll probably need to set aside more money now to cover your mortgage payments, a Mortgage Specialist can help you save better while also working toward your longer-term goals.

Quick Fact

Because of factors like higher interest rates, multigenerational homebuying is on the rise. According to Statistics Canada, multigenerational households have increased by 50% since 2021.*

Did you know?

Making your home ownership dreams a reality doesn’t have to be difficult. The first important step is setting aside enough money for your downpayment. A larger downpayment means a smaller mortgage, which may result in less mortgage interest you’ll need to pay.

¹https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/

²https://www.bankofcanada.ca/2024/02/summary-governing-council-deliberations-fixedannouncement-date-january-24-2024

^*https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=9810013401