Ontario man considers selling house before mortgage payments rise $2,000, even after interest rate cut
CTV
An Ontario man says he’s still considering selling his house, despite this week’s interest rate cut, with his mortgage payments set to leap over $2,000 next month.
An Ontario man says he’s still considering selling his house, despite this week’s interest rate cut, with his mortgage payments set to leap over $2,000 next month.
“I'm happy to see, finally, a rate cut. I wish it came a lot faster,” Gerry Best, a 66-year-old homeowner in Kitchener, Ont., said.
On Wednesday, the Bank of Canada cut its overnight rate by 25 basis points – a move unseen since before the pandemic.
At the same time, the central bank teased the possibility of further cuts to come, with many economists forecasting that Canada will see another two to three 25 basis point cuts by the end of 2024.
But for Best, it won’t be enough to move the needle before his mortgage renewal on July 17 – just one week before the next interest rate announcement.
The Bank of Canada had previously raised rates 10 times beginning in March 2022 as part of an aggressive hiking campaign made necessary by surging inflation.
“Prior to the Bank of Canada raising the rates, I got caught up in the variable interest nightmare, where it kept on going up and up and up and up,” Best said.
