Dear Clients, Neighbours and Friends,

Its official, the Bank of Canada has dropped its overnight lending rate by .25 per cent to 4.75 per cent.

Let’s pause here for a moment of pure joy and deep breathing.

Now, let’s read on ….

If you are in a fixed payment variable mortgage your payments will not change. Instead, more of your payments will go toward principle, less toward interest. If you are in an adjustable mortgage then its likely the payment after your next one will show the drop.

Depending on the rate and the amortization, Interest costs will now decrease about $14 per month, per $100,000. For lines of credit, the decrease in payments will be approx. $20 per $100,000.

Technically variable has performed the same or better than fixed rates since September of last year. But now with the first rate cut variable mortgages are expected to outperform  fixed over the next 3 years.  As of today, a variable is expected to cost approx. $7,000 less than a fixed over the next 3 years. But there are still tons of reasons to consider a fixed rate.

If you are considering buying a home or renewing your mortgage sometime in the next few months it will be important to talk to a mortgage expert to get a rate hold or review renewal options based on your needs and goals

While this rate cut may not spur on an immediate uptick in sales activity it will open the door for buyers and sellers to reconsider the timing of their plans.

With home pricing relatively flat over the last year and inventory levels at their highest since September 2019 now is a great time to get off the sidelines and beat the rush but to keep home pricing balanced we will need to see sellers enter the market in equal numbers.

Here is a quick summary of current home values in Surrey

Benchmark pricing for a detached home in Surrey – Cloverdale now sit at $1,575,000 – $1,531,000 respectively.

South Surrey White Rock detached is $1,946,000.

Townhomes in Surrey / Cloverdale / and South Surrey White Rock now cost approx. $858k / $874k / $977k.

Apartments in the same sub areas, $573k / $607k / $644k

Whatever your real estate goals we can help put you in touch with a mortgage broker or provide a free, no obligation home evaluation. 

Talk to us.  It’s what we do.

Jenn & Colin