Mortgage broker sees Ontario home prices ‘grinding down’ amid trade war
One mortgage broker says the latest rate cut by the Bank of Canada will benefit homeowners with variable mortgages, but the economic impact of U.S. tariffs could fuel mortgage competition among lenders, weighing on home prices in Ontario.
The Bank of Canada lowered its key policy rate by 25 basis points Wednesday to 2.75 per cent, marking the seventh consecutive cut, with Governor Tiff Macklem saying signs of momentum in Canada’s economy are facing risks from a trade war with the U.S. Ron Butler, a mortgage broker at Butler Mortgage, said in an interview with BNN Bloomberg Wednesday that major Canadian banks are expected to lower prime rates by tomorrow. Before the end of the month, he said the lower rates will be reflected in variable mortgage rates with some seeing lower payments, but all seeing lower interest rates.
With variable rates moving lower, Butler said those deciding to between variable and fixed products should consider their employment situation.
