The bank of Canada just announced another cut to the interest rate, which affects mortgages and loan. But do Edmontonians really care about it?
A Christmas present to those looking to borrow money more cheaply as the bank of Canada cut their prime rate by half a percentage point, this is the bank’s fifth straight cut.
New prime is 3.25 per cent and that’s a number that interests future home buyers.
“We’re getting to a point where the variable rates are very close to a fixed rate,” said Eddy Chang Realtor, Royal Lepage.
Chang says lower rates mean those looking to buy a home can afford more, and those looking to sell can ask more.
“They can be a little bit more daring with the asking they want to list it for if there’s really no competition then you’re not really in a position to need a price reduction, you can just wait for someone who is willing to come and pay for it,” said Chang.
Despite the cut, some people we spoke to here in Edmonton’s Whyte Ave don’t seem to really care or have a knowledge of the recent announcement.
“It doesn’t really affect me, I have a house already, so it doesn’t matter,” said Marius, Edmontonian.
“Not for me personally because I just rent but with the pay that we’re getting I don’t think it’s easy to take loans anymore,” said Jasmine, Edmontonian.
Renters may look to move out and up to a home of their own, but there will be more competition for what’s for sale on the market.
“Finding homes right now is a little bit hard, I mean I was trying to look on the market last year, and even with the pay and the hourly rate that I get, it was not going to happen for me at all so I have no option but to rent,” said Jasmine, Edmontonian.