Bank of Canada Slashes Rates: What It Means for Mortgages, Housing, and the Economy

The Bank of Canada (BoC) lowered its policy rate by 50 basis points this week, bringing it to 3.25%, the lowest level in over two years. This significant cut, which follows weaker-than-expected GDP growth and rising unemployment, has increased buying power for borrowers by 21%, enabling higher mortgage affordability. However, questions remain about whether these rate cuts are sufficient to revive the economy and ease challenges for mortgage holders renewing at higher rates in 2025. Despi...