Huge news was announced by the Bank Of Canada this morning. They announced that the key overnight lending rate was reduced by 0.25 of a percentage point to 0.75. This rate has been steady at 1 % since September 2010. Their reasoning behind the interest rate drop was it being a significant response to the uncertainty surrounding the volatile Oil Market in Canada and the declining Oil prices.
What this means for the average prospective buyer in Canada is that there will now be lower rates for variable mortgage rates, lines of credit, and other loans that differentiate with prime rates. This will provide a greater incentive to home buyers and ultimately provide insurance with the declining oil prices and the effect on the Canadian economy, and most importantly the Alberta Economy.
We foresee the Calgary Real Estate Market staying stable throughout this and the oil prices hopefully rebounding before we see a significant effect on the market.
For more information on the Calgary Real Estate Market or home financing please contact us, the Top Producing Real Estate Team at the #1 Century 21 Canada Real Estate Office!
Top Producing Team at Century 21 Bamber Realty Ltd.