Bank of Canada surprised the stock market yesterday with the announcement of an interest-rate cut. Stephen Poloz, Bank of Canada governor, lowered the rate from 1% to 0.75 to reduce borrowing costs for companies and individuals. As a result, mortgage rates went down tending people to buy new houses or cars.
Darren Chapman, economics professor at Fanshawe College, says ” buying at a low mortgage rate is big risk to take, because Canada’s economy has to grow at least 2% to make you pay extra 66%.Chapman adds, low oil prices triggered all the changes that we are now seen within the stock market.
Canadian mortgage rates might reaching at the lowest rates in the country’s history.