With the fallout from Brexit dominating the news headlines many people in Canada are wondering how this will effect our economy at this time. The Bank of Canada is set to announce their next interest rate July 13th but a rate hike is not expected. The interest rates are expected to stay low and with Brexit happening and with the low Canadian dollar a rate hike could be delayed. With the commodity prices suffering there is no quick fix to the economy in Canada, and with the instability in other markets around the world. The United States rate hike could also be delayed due to the uncertainty of the economy.
The lower interest rates in the Canada housing market will add more fire to the hotter markets, and it could be attractive to first time home buyers looking to get started at a low interest rate. The expected low interest rates could be held at this rate until the end of 2017 according to the Bank of Montreal. The housing market in high volume areas such as Vancouver, and Toronto may see home prices increase to prices that may be out of reach for buyers. Property value may go up, but this is only because of the struggling global economy, which could hurt the housing market in the long term.
In the short term if you are looking to buy your first home, a new home, or refinance there is the opportunity to take advantage of the lower rates set out by the global economy struggling. It is unknown how long these rates will remain low, but this could attract more interested players into the housing market.
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