The Bank of Canada has increased interest rates by 475 basis points since March 2022 to ease price pressures and slow down spending in the economy. As a result, the economy is no longer in excess demand, and the council is watching for signs that this slowdown will translate into sustained easing in inflation.

Inflation in Canada was 3.4% as of December 2023, which is down from the high levels that prompted the Bank of Canada to start tightening rates, but still above the central bank’s target rate of two percent. Mortgage interest costs remain a major contributor to elevated inflation levels due to the Bank of Canada’s rate hikes. The Bank of Canada will wait until inflation is “absolutely dead” before cutting interest rates, even if it means keeping it up for two or three months extra.

What does this mean for you in 2024? 

Shockingly, 2024 is actually going to be a huge opportunity year for real estate! 2024 is a good year to invest. While there may be fewer opportunities for quick profits, real estate remains a solid, long-term investment.

Even though interest rates are higher in the short term, the softening of home prices gives an amazing opportunity to get into the market if you can qualify!

In December, there was a slight increase in housing supply, but it is still not sufficient to meet the growing demand. The population growth includes the adult children who need their own housing, and the immigrants and migrants who come to the country.

My biggest concern for new immigrants – and what we often see with immigrants and refugees – is that they move to Canada for a better life. However, if affordability is a big issue, is it really a better life that we’re able to offer?

Immigrants need more than just a big warm hug as they enter the border; they need affordable housing just like the rest of us. Otherwise, it puts more strain on the system across the board, which we’ve already seen.

The government is making small efforts to increase housing availability, but it’s not enough to address the affordability issue. Simply increasing the supply of housing may not be sufficient to bridge the gap between income and housing costs, which has become a significant issue.

Nonetheless, any additional housing is better than nothing. Affordability is just one solution to the problem, but it’s a step in the right direction.

“We cannot afford to get complacent and assume that the lowering rates we have now will continue in the future.”

We are not yet out of the woods when it comes to increasing living costs, and we are all aware of the worldwide challenges that may negatively impact us. Therefore, having a solid saving strategy is crucial.

When choosing a mortgage, it’s important to consider the pros and cons of short-term, long-term, fixed, or variable rates, and align it with your needs for the next three to five years.

Remember that you may be qualified at a higher rate than you’ll be paying, so use the savings to increase your savings, retirement plan, or emergency fund. Maximize the strategic selection of your mortgage by taking advantage of these savings.

Mortgage renewals remain a concern in 2024. While some may benefit, we don’t expect significant changes from last year’s increase in renewal rates.

“We are concerned about your mortgage renewal if it’s due in the next 12 months. You need to have a conversation with us. We will provide you with unbiased information that you can take to your bank to help you negotiate your renewal. This service is no different from any other service. The difference is that we will help you get the best deal.”

If you’re looking for unbiased and reliable advice on your upcoming mortgage renewal, then you need to give us a call. We will ask you some important questions, evaluate your existing renewal, and provide you with the best options and recommendations available in the market, absolutely free of charge.

Our needs, desires, and wants are unique to us, which means that what worked for you financially a year ago or three years ago may not work for you today. However, this doesn’t mean that the situation is dire – there are still many opportunities out there. We can help you identify how to fit into these opportunities and achieve your goals.

We take pride in helping people save on unnecessary interest and avoid making uninformed decisions regarding their largest financial commitment. This is an extremely crucial decision, and we understand its importance.

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