VANCOUVER (December 11, 2024) – The Canadian Mortgage Brokers Association – British Columbia (CMBA-BC) is welcoming today’s announcement by Bank of Canada Governor Tiff Macklem to cut the key overnight rate by 50 basis points —from 3.75 per cent to 3.25 per cent. The central bank is also signalling that further rate reductions may be on the horizon in 2025.

CMBA-BC sees this rate cut as a vital measure to reduce financial pressure on mortgage holders, borrowers, and first-time homebuyers across British Columbia. While immediate shifts in fixed mortgage rates may take time to materialize, variable rate mortgages and Home Equity Lines of Credit will benefit directly from the reduced prime lending rate. Additionally, homeowners with upcoming mortgage renewals are expected to experience meaningful relief.

“Today’s announcement is a critical lifeline for mortgage holders and prospective homebuyers in B.C., particularly for first-time buyers navigating affordability challenges,” said Rebecca Casey, President of CMBA-BC. “We are encouraged by this accelerated rate cut, which will provide much-needed financial stability and help ease the path to homeownership for many.”

CMBA-BC has long advocated for policies and measures that prioritize the needs of mortgage holders and homebuyers, emphasizing how strategic interest rate reductions can mitigate the financial challenges exacerbated by inflation and rising living costs. Today’s decision is an important step toward creating more affordability and stability for British Columbians in the housing market.

Last month, Canada’s unemployment rate rose to 6.8%, the highest since January 2017 excluding the pandemic. The total number of unemployed persons now stands at 1.5 million, up by 276,000 compared to the same time last year. Although the economy added 51,000 jobs, 45,000 of new jobs came from the public sector. Current economic conditions only further necessitates a more supportive rate environment.

“This latest rate cut is a positive signal, but ongoing relief and proactive economic policies are vital to ensuring a stable mortgage market and providing British Columbians with the financial certainty they need,” added Casey.

CMBA-BC remains steadfast in its commitment to advocate for policies that support mortgage holders and homebuyers, promote a healthy housing market, and ensure British Columbians can navigate the challenges of homeownership in a time of economic change.

Published by CMBA – Canadian Mortgage Brokers Association