Leah Zlatkin quoted in Toronto.com: ‘Bank of Canada lowers interest rates amid ‘more-than-usual uncertainty’ in Canada’s economy’

When it comes to housing, homebuyers who have been biding their time to make a purchase might be wise to do so now, licensed mortgage broker and COO of Mortgage Outlet Leah Zlatkin said.

“Many potential buyers are hitting the pause button, hoping for more favourable conditions later on,” Zlatkin said in a press release. “However, a shift is underway, particularly in the Toronto and Vancouver housing markets, creating a real advantage for those prepared to move now. We’re seeing a cooling trend with increased inventory, especially in condos, and slower sales activity.”

And with the spring market around the corner, when sales typically increase, affordability could worsen.

“(The Canadian Real Estate Association’s) forecast of a 4.7-per-cent increase in the national average home price in 2025 further underscores the potential challenges buyers may face.”

The rate cut is good for people with variable rate mortgages, as they will see some relief immediately, Zlatkin said.

Using rough mortgage calculations, for the average Canadian home worth $676,640, with a variable rate of 4.45 per cent, monthly payments would now drop by $64 to approximately $3,167, compared to what it cost in December.

“This also frees up some cash flow, which can be used for other financial goals, like paying down debt or increasing savings.”