Date: April 10, 2025

Category: Blogs,Mortgage Tips & Advice

Are We Headed for a Rate Cut? 

Job losses, trade tensions, and inflation shifts — What it means for your mortgage

This month brings some key updates that could impact your mortgage plans. While markets have been hoping for a rate cut, recent economic news makes it even more likely the Bank of Canada could take action soon.

What’s Going On?

  • Canada lost over 32,000 jobs in March, marking the first decline in employment in more than three years
  • Trade tensions with the U.S. are creating uncertainty for Canadian industries and increasing recession risk
  • The next Bank of Canada announcement is April 16

Because of this, many economists now expect the BoC may announce another rate cut of 0.25%, especially with U.S. inflation trending lower and Canada’s job market starting to soften.

Markets are now pricing in a 66% chance of a rate cut this month.

What does this mean for you?

  • If you’re buying a home, it’s smart to secure a rate hold — that gives you a ceiling, and if rates drop, we can always adjust
  • If you’re renewing soon, let’s explore short-term or variable options that give you flexibility
  • If you’re on a variable rate, this could be welcome news — your rate may drop again soon

Fewer Buyers Right Now = More Opportunity

A recent survey shows that fewer renters in Canada plan to buy this year — the number dropped more than 9% in just one quarter. That means less competition and more choice if you’re ready to buy now.

Why Waiting Might Cost You More

Let’s say you buy a home now for $700,000 at a 3.99% 5-year fixed rate with 20% down:

Your mortgage = $560,000, monthly payment = ~$2,951

You wait for a lower rate — say 3.5% — but prices go up to $735,000:

New mortgage = $588,000, monthly payment = ~$2,943

Your payment is nearly the same, but you’re borrowing $28,000 more, which means you’ll pay more interest over time.

The Takeaway:

Even if rates go down, home prices may go up. Acting now gives you more negotiating power, less competition, and the option to adjust your rate later if the market improves.

📞 Let’s review your mortgage solutions—it just makes “cents”!

Talk soon,

Ana

Mortgages can be complicated; we are here to help you make “cents” of it.

We focus on Mortgage Solutions, Period!

To learn more connect with Ana Cruz 905.870.0513 or email at ana@askanacruz.ca