‘Canadians can breathe a sigh of relief’: Macklem says after bank cuts interest rate to 3.75%delivered a big rate cut on Wednesday, slashing key borrowing rates by half a percentage point, and experts said this could help jolt Canada’s “sluggish” housing market.
Phil Soper, president and CEO of Royal LePage, said the most immediate impact of Wednesday’s rate cut will be felt by those who have variable rate mortgages. “It causes buyers to have this this FOMO – fear of missing out – in the market that causes prices to start jumping up too high and it makes housing that much more unaffordable.”Davelle Morrison, a broker at the Toronto-based Bosley Real Estate, said this rate cut could prove a good opportunity for first-time homebuyers and for anyone with debt, such as credit card debt or pending mortgage payments.