Bank of Canada Key Interest Rate Reduction

The Bank of Canada has reduced their key overnight lending rate for the first time in 4 Years

Yesterday, June 5 2024, the Bank of Canada has reduced their overnight lending rate for the first time in 4 years. What does this mean for the Yellowknife real estate market and Yellowknife home owners / home buyers?

Yellowknife home buyers and home owners who plan to utilize or are currently utilizing a variable rate mortgage to finance their home will see reduced rates and reduced payments over the coming months as the bank of Canada starts a cycle of easing on lending rates. Fixed rate mortgage rates have already seen healthy reductions in lending rates leading up to this rate decision and are expected in coming months to continue to reduce so long as the Bank of Canada carries on as expected.

The RBC Bank expects a further 3 rate reductions this calendar year leaving overnight lending rate at 4% by years end. The next rate decision from the Bank of Canada comes July 24 2024. 

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