Understanding mortgage rates is crucial for anyone looking to buy a home in Canada, as these rates directly impact the cost of borrowing money to finance a property.
Mortgage rates, which are the interest rates on housing loans, fluctuate based on various economic factors, including inflation.
In this article, we will explore the revised mortgage rates in Canada for 2024, the economic conditions affecting these rates, and a detailed look at housing trends across different provinces.
Canada Revised Mortgage Rates
Mortgage rates are tightly linked to the broader economic environment, particularly inflation. As inflation rises, so do mortgage rates, making borrowing more expensive.
Conversely, when inflation decreases, mortgage rates tend to decline, making it cheaper to finance a home. In 2024, Canada has seen significant changes in its mortgage rates, influenced by the inflationary cycles of the previous year.
Key Points:
- Title: Canada Revised Mortgage Rates 2024
- Announced By: CEO of Bank of Canada
- Country: Canada
- Economic Indicator: Mortgage Rates
- Official Website: Bank of Canada
Canada Revised Mortgage Rates 2024
In 2024, mortgage rates in Canada have seen notable adjustments due to shifting inflation trends. At the start of the year, the mortgage rate was steady at 5%.
However, as inflation began to decline in mid-2024, the Bank of Canada made strategic cuts to the mortgage rate to support economic growth and make borrowing more affordable.
Timeline of Mortgage Rate Changes in 2024:
| Date | Rate | Change |
|---|---|---|
| 24th July 2024 | 4.5% | -0.25% |
| 5th June 2024 | 4.75% | -0.25% |
| 10th April 2024 | 5% | – |
| 6th March 2024 | 5% | – |
| 24th January 2024 | 5% | – |
| 6th December 2023 | 5% | – |
| 25th October 2023 | 5% | – |
| 6th September 2023 | 5% | – |
| 12th July 2023 | 5% | +0.25% |
| 7th June 2023 | 4.75% | +0.25% |
| 12th April 2023 | 4.5% | – |
| 8th March 2023 | 4.5% | – |
Impact of Mortgage Rate Changes
The Bank of Canada’s decision to reduce the mortgage rate by 0.25 percentage points in both June and July 2024 reflects a response to declining inflation.
These cuts bring the mortgage rate down to 4.5% as of July 2024, making borrowing cheaper and stimulating housing market activity.
Lower mortgage rates encourage home purchases and investments in real estate, contributing to overall economic growth.
Economic Context
The Canadian economy grew by 1.5% in the first half of 2024, while the population increased by 3%, indicating a higher supply of housing relative to demand.
Tiff Macklem, the CEO of the Bank of Canada, has indicated that if the inflation trend continues to decrease, further cuts to mortgage rates may be expected.
Housing Market Trends Across Canadian Provinces
Different provinces in Canada have experienced varying trends in housing sales and mortgage rates, reflecting local economic conditions.
Ontario
In Ontario, home sales rose by 10.1% in 2024, with new residential listings reaching 39,164 in June. This is an increase from 38,445 listings in April, indicating a robust housing market in the province.
British Columbia
British Columbia saw a decline in residential unit sales by 19%, with only a 1% increase from the previous year. This suggests a slower housing market in comparison to other provinces.
Alberta
Alberta experienced positive growth in home sales, with a housing sale rate of 6.3%, indicating a healthier market relative to British Columbia.
Upcoming Mortgage Rate Announcements for 2024
The Bank of Canada has scheduled several rate announcements for the remainder of 2024 and early 2025, which will be closely watched by prospective homebuyers and investors:
| Date | Description |
|---|---|
| 4th September 2024 | Announcement of rate |
| 23rd October 2024 | Rate announcement with Monetary Policy Report |
| 11th December 2024 | Announcement of rate |
| 29th January 2025 | Rate announcement with Monetary Policy Report |
| 12th March 2025 | Announcement of rate |
| 16th April 2025 | Rate announcement with Monetary Policy Report |
| 4th June 2025 | Announcement of rate |
| 30th July 2025 | Rate announcement with Monetary Policy Report |
| 17th September 2025 | Announcement of rate |
| 29th October 2025 | Rate announcement with Monetary Policy Report |
| 10th December 2025 | Announcement of rate |
The Canada Revised Mortgage Rates for 2024 reflect the country’s economic response to changing inflation rates.
As inflation trends downwards, the Bank of Canada has made strategic cuts to mortgage rates, making housing more affordable and encouraging economic growth.
Homebuyers and investors should stay informed of upcoming rate announcements to make well-timed financial decisions.
FAQs
What is the current mortgage rate in Canada for 2024?
As of July 2024, the mortgage rate is 4.5%.
How often does the Bank of Canada announce mortgage rates?
The Bank of Canada announces mortgage rates multiple times a year, with scheduled announcements throughout 2024 and 2025.
How does inflation affect mortgage rates in Canada?
Inflation and mortgage rates have a direct relationship; as inflation increases, mortgage rates tend to rise, and as inflation decreases, mortgage rates often fall.
Which province has seen the highest increase in home sales in 2024?
Ontario saw the highest increase in home sales, rising by 10.1%.
When is the next mortgage rate announcement?
The next mortgage rate announcement is scheduled for 4th September 2024.
