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The Bank of Canada's recent decision to cut its key interest rate by 25 basis points to 2.75% is anticipated to have significant implications for the Canadian housing market. Experts suggest that this reduction could make homeownership more accessible by lowering borrowing costs, potentially stimulating increased activity in the real estate sector. Phil Soper, President and CEO of Royal LePage, highlighted that the rate cut is expected to enhance affordability, encouraging both prospective buyers and current homeowners to consider entering or upgrading within the market. ​

However, the impact of the rate cut may vary across different regions and market segments. In areas like Calgary, despite the reduction, a significant surge in the housing market is not anticipated immediately. Jacqueline Wilson from CTV Calgary reported that while the lower rates might benefit some buyers, broader economic factors and local market conditions will continue to play a crucial role in influencing housing demand and prices.

​ Additionally, the rate cut's effect on mortgage choices is noteworthy. Mortgage broker Ron Butler explained that individuals with variable-rate mortgages are likely to see immediate benefits from the reduced rates, resulting in lower monthly payments. Conversely, those with fixed-rate mortgages may not experience immediate changes but could find more favorable terms upon renewal. This dynamic may influence homebuyers' decisions when choosing between variable and fixed-rate mortgage options in the current economic climate.

Read the full article on: CTV NEWS