top of page
< Back

Important Resources

Save this article  > 

Is the Bank of Canada affecting the TO real estate market?

Author: Staff
Publication date:
October 29, 2020
Article Summary: 

The Bank of Canada has lowered the overnight interest rate dramatically since the start of the COVID-19 pandemic, leading to the lowest interest rates for 5-year-fixed mortgages in history. Lower rates make it easier for more people to buy homes, leading to an increase in demand and, consequently, prices. The Bank of Canada influences interest rates, but lenders set mortgage rates based on factors such as operating costs, what they pay to borrow the money, and the level of risk involved. The Bank of Canada's goal is to keep inflation at a relatively steady 2%, and they raise or lower the overnight rate to influence other market interest rates, including mortgage rates. Falling rates boost buying power and can help homeowners by enabling them to break or refinance their mortgages at lower rates, potentially saving thousands over the life of a mortgage. The Bank of Canada's influence on interest rates is only one of many factors that influence rates, which are determined by the state of the economy in Canada and internationally.


Bank of Canada, overnight interest rate, COVID-19 pandemic, 5-year-fixed mortgages, demand, prices, buying power, inflation, market interest rates, lenders, operating costs, borrowing costs, risk, refinance, economy, international.

Source Citation: Staff
Is the Bank of Canada affecting the TO real estate market?
October 29, 2020
Did you find this article useful? 
Your feedback is important not only to us, but to all the other key players in the condo industry.  Help us by letting us know if this article is relevant and useful.  This will help us prioritize articles that provide helpful guidance to other key players like you. 

Please login to use this feature.

bottom of page