BoC Rate Pause Continues

It's a welcome sign for rate-weary home buyers and sellers.

Will this second consecutive rate pause by the Bank of Canada (holding at 4.50% with bank primes at 6.70%) be enough to summon an upturn in the housing market?

A (rate) signal of housing hope.

Today's Bank of Canada pause sends out a hopeful signal that an official end to its hasty rate-hike cycle may be near.

It's a reason to look up with some optimism that the battle of budget changes and home affordability issues caused by suddenly higher rates this past year may soon start to improve.

For our clients with a variable-rate mortgage, upcoming renewal, or looking to buy a home — persistent recession rumours may mean we'll see interest rate cuts sooner, or at the very least, will help keep fixed mortgage rates on hold or trending downwards in the next few months. That may be enough to encourage wary buyers and sellers to make their moves this spring.

Does it mean we're out of the snarly rate woods and back in the neighbourhood of a more stable housing market?

The BoC policy rate is making a dent in inflation, so far.

The BoC is waiting and watching for its benchmark policy rate, which sets the tone for all interest rates, to persist in making a dent in lofty inflation and a stubbornly-warm economy.

February's inflation, measured by the Consumer Price Index (CPI), saw the largest deceleration since April 2020 to sit at 5.2% (down from 5.9% the previous month), which is a good sign to help keep rate hikes at bay. The next CPI reading comes out on April 18.

However, Canada's January GDP numbers (released on March 31) declared that our economy grew by 0.5% when a lower 0.4% had been expected. The GDP stats tell us what has occurred, not what's happening now. But, that show of market strength also combines with our too-strong job market, which continues to defy expectations of cooling. The expert majority still believe rate-pushed weakening of the unemployment rate is soon on its way.

Will a rate pause continue at the central bank's June 7th decision? Read more about where rates may be going in Dan Eisner's 2023 Mortgage Rate Forecast (as True North's Founder and CEO, his innovative brokerage model is why our clients enjoy their best mortgage rates and broker service in the industry today).

What mortgage term length should you choose? With rate and market volatility still afoot, you may be wondering about your best mortgage strategy to take advantage of lower rates when they arrive:


Will buyers and sellers come back this spring?

From a recent Royal LePage survey, 26% of buyers are planning to enter the market this spring, with another 36% waiting for an assured 'pause' before wading back in.

Home prices are stabilizing across Canada after challenging mortgage rates led to depressed sales in 2022 and continue to dissuade sellers from listing their homes in the first quarter of 2023.

National home sales ticked higher in February, but many sellers are still reluctant to give up their current mortgage to pay more interest, or are waiting for better prices to get their perceived 'money's worth.' Increasing immigration targets are also adding competition — all of the above will make for an interesting housing market to watch this spring.

Market rates are much higher than a year ago (we have your best rates here at True North), impacting home affordability despite some regions seeing prices reduced. But this second pause in rate hikes may yet beckon home buyers AND sellers back to the housing market scene.

We want to be your mortgage hero.

Want a lower mortgage rate to help save cash? Or like the idea of having flexible mortgage options and unbiased advice to reduce time and stress, now and later? True North Mortgage brokers, to the rescue!

Working with clients every day is like steering a custom-built (mortgage) batmobile on your behalf — plowing straight through the rate and lender options to your best solution. And, we seek to protect you from unruly terms or conditions that may cost you more later when you least expect it.

Whether you're worried about an upcoming renewal, are looking to refinance this spring or get a HELOC (Home Equity Line of Credit) to access extra funds (for example, to buy another home or consolidate debt), or want some help making more mortgage-budget room — we help you quickly and seamlessly so that you can spend the rest of the day being your own hero.

We're here to help you save money, time and stress with your fast pre-approval and personalized mortgage experience. Give us a shout! We can easily help you across Canada with all your mortgage needs.

BoC 2023 Rate Dates

Your best-rate hero, to the rescue!