Leah Zlatkin interviewed by the Toronto Star: ‘Bank of Canada interest rate cut to have little effect on real estate market, experts say’

Mortgages rates, while lowering, are still high for many people, said Leah Zlatkin, mortgage broker and COO of Mortgage Outlet. Homeowners with a variable rate mortgage, which is tied to the Bank of Canada’s prime rate, will see an immediate impact on their mortgage payments. And for buyers interested in opting into a variable-rate mortgage, the lowest variable rates will decrease to about 5.75 per cent.

“Given that rates have been high for an extended period of time, any decrease is welcome news,” Zlatkin said in a statement. “But this cut is not likely to be the one that moves the housing market in a significant way. We’ve seen a 50-basis-point drop since June, but rates are still comparatively high and many potential buyers are waiting for further rate decreases to increase their buying power before they make a move.”