Bank of Canada cuts another half percent of its key lending rate, time to go shopping!

Well, the speculation and anticipation of yet another rate decrease by the Bank of Canada became a reality today! The Bank of Canada reduced its key lending rate to a historical low of 0.5%. The move is intended to help jump start a rather fragile Canadian economy and get consumers out there spending again. Bottom line here is if you have a variable rate mortgage loan, you are quite literally laughing all the way to the bank! Fixed rate mortgages with five year terms are still in the low 4.2% neighborhood, but are expected to move upward as the bond market has already reacted to the latest rate cut by the Canadian Government. Full CBC Story

For a buyer looking to potentially purchase a home after this latest rate cut, the news just got a little better. Banks and lenders alike are still looking to fund mortgages for first time home buyers and there aren't as many hoops to jump through as one might think. One of the local mortgage companies I typically recommend is Mortagageopolis for great service and knowledge of various lending products on the market today. Keep in mind that real estate prices here in Kelowna have come down approximately 15% in the last calendar year. This allows buyers even greater buying power with less cost to borrow funds.

You have may heard many of us in the real estate industry state that..."Now is a great time to buy!" There is more truth to that today than there was yesterday. So let's all get out there and get this economy rolling again!

Sincerely,

Jason Neumann