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

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.