For today, , nesto’s -year mortgage rate is bps () lower than the similar average at Canada’s Big 6 Banks. On a mortgage over a -year amortization, with nesto your monthly payment would be , saving you up to on your monthly payment. This equals in interest saved while allowing you to pay down extra on principal over your term.
As a homebuyer, many valuable resources are available to help you throughout the homebuying process. Online mortgage calculators, such as the RBC mortgage calculator, are one of the most valuable tools for homebuyers, helping you quickly calculate various payments without complicated manual number crunching.
An online mortgage payment calculator will help you estimate mortgage payments alongside a corresponding amortization schedule.
The latest Bank of Canada (BoC) announcement on September 4th was a policy interest rate decrease to
. The decision to decrease rates came as the BoC cited economic activity was soft in June and July; meanwhile, the labour market continued to slow. Continued easing in broad inflationary pressures and excess supply in the economy are putting downward pressure on inflation, leading the Governing Council to lower the policy rate by 25 basis points.
While inflation has eased, the growth in shelter costs, particularly rent and mortgage interest costs, is currently the most significant contributor to total inflation. The Governing Council continues to monitor core inflation numbers when assessing policy rate decisions to ensure there is sustained downward momentum in inflation.
The next announcement will be on October 23rd. Using nesto’s proprietary overnight index swap and forward rate calculation data, bond markets are currently pricing in the probability of further rate cuts. However, without further sustained reductions to core inflation, the Bank may leave the key rate unchanged.
On August 15th, the Canadian Real Estate Association (CREA) released its July home sales data. The data showed that home sales fell 0.7% between June and July, offsetting some of the gains made in June.
July’s home sales activity reported that new listings increased by 0.9% month-over-month, which was led by an increase in new supply in Calgary. Slower sales and more new listings continue to increase the number of homes available for sale across most of the Canadian housing market.
Slower sales may likely be the last, as the Bank of Canada’s rate cuts may increase real estate activity. Rate cuts are anticipated to bring some pent-up demand back into the market, with buyers having more housing options than at any point in almost 5 years. Prices have stagnated across most markets except for Calgary, Edmonton, and Saskatoon, where prices have steadily climbed since last year.
Statistics Canada’s latest inflation data, released on August 20th, showed the Consumer Price Index (CPI) rose 2.5% year-over-year in July, down from 2.7% in June. This month’s slowdown is attributed to slower year-over-year growth in travel tours, passenger vehicles and electricity.
Shelter prices continued to be a more significant driver of inflation in July, up 5.7%, down from the 6.2% recorded for June. Higher interest rates are impacting Canadians’ spending patterns, as they are now spending less on discretionary items and delaying big-ticket purchases. This may be contributing to lower demand as prices for durable goods fell 1.7% in July.