Canadian Interest Rates Cut by Half a Percent
The Bank of Canada has cut the target for it's overnight lending rate by half a percentage point today and the major banks have already started to respond by lowing their prime lending rate by an equal amount. This will help to spurr on the Spring real estate market in Metro Vancouver as every small decrease in interest rates brings about a significant savings for home buyers. With real estate prices, at least in the City of Vancouver, continuing to climb this year every little bit helps buyers afford their now home.
Reuters reported at noon Vancouver time that TD Canada Trust has already resonded, announcing that it will cut its prime lending rate by 50 basis points to 5.25 percent, beginning March 5.
You can find the Bank of Canada press release here along with a brief analysis of the reasoning behind the changes.
Matthew Collinge: Vancouver REALTOR® with Royal LePage Westside
