Understanding mortgage rates is essential for anyone considering buying a home in Canada, as these rates directly impact monthly payments and long-term housing costs.
Mortgage rates are influenced by several factors, including the economy, inflation, and the decisions made by the Bank of Canada. This article will break down the Canada Revised Mortgage Rates for 2024, recent changes, and what to expect going forward.
Canada Revised Mortgage Rates 2024
Mortgage rates in Canada are highly dependent on inflation. Typically, when inflation rises, mortgage rates increase as well, making borrowing more expensive.
Over the last few years, inflationary cycles have pushed rates higher, but there have been encouraging signs of relief in 2024, with inflation cooling down.
In May 2024, Canada’s inflation rate was notably high, driving mortgage rates to 5%. However, as inflation began to ease in June 2024, the Bank of Canada cut rates by 0.25 percentage points, bringing the mortgage rate down to 4.75%.
Another cut of 0.25 points in July 2024 further reduced the rate to 4.5%. This series of rate cuts makes borrowing more affordable, encouraging spending on housing and investment.
Canada Mortgage Rates 2024
| Date | Mortgage Rate | Change |
|---|---|---|
| 24th July 2024 | 4.5% | -0.25% |
| 5th June 2024 | 4.75% | -0.25% |
| 10th April 2024 | 5% | – |
| 6th March 2024 | 5% | – |
| 24th January 2024 | 5% | – |
The Bank of Canada CEO, Tiff Macklem, has indicated that if inflation continues to decline, further rate cuts could be expected. The Canadian economy grew by 1.5% in the first half of 2024, while the population grew by 3%, indicating a housing supply surplus compared to demand.
Mortgage Rates by Province
Mortgage rates can vary across Canada, and housing market trends differ from province to province. Here’s an overview of housing activity in key provinces:
- Ontario: Home sales rose by 10.1% with 39,164 new residential listings in June 2024, up from 38,445 in April.
- British Columbia: Residential unit sales declined by 19%, with only a 1% increase compared to last year.
- Alberta: Housing sales remain positive, with a 6.3% growth rate in the province.
Mortgage Rate Announcements for 2024
The Bank of Canada regularly reviews and adjusts mortgage rates throughout the year based on economic conditions. Here’s the schedule for mortgage rate announcements in the latter half of 2024 and into 2025:
| Date | Description |
|---|---|
| 4th September 2024 | Announcement of Rate |
| 23rd October 2024 | Rate Announcement with Monetary Policy Report |
| 11th December 2024 | Announcement of Rate |
| 29th January 2025 | Rate Announcement with Monetary Policy Report |
| 12th March 2025 | Announcement of Rate |
| 16th April 2025 | Rate Announcement with Monetary Policy Report |
What to Expect in 2024
As inflation continues to decline, borrowers can expect mortgage rates to remain lower than they were in early 2024. However, economic fluctuations could still cause adjustments throughout the year.
Monitoring the Bank of Canada’s announcements is essential for anyone looking to buy a home or refinance an existing mortgage. Lower mortgage rates encourage homeownership and investment, making it a more favorable time for buyers in Canada.
FAQs
What is the current mortgage rate in Canada for 2024?
As of July 24, 2024, the mortgage rate is 4.5%, down from 5% earlier in the year.
Why did mortgage rates decrease in 2024?
Mortgage rates dropped as inflation eased, prompting the Bank of Canada to cut rates by 0.25% in June and July 2024.
When is the next mortgage rate announcement in Canada?
The next announcement is scheduled for September 4, 2024.
How does inflation affect mortgage rates in Canada?
Mortgage rates tend to rise with inflation, but as inflation decreases, mortgage rates also tend to decline, making borrowing cheaper.
Which province saw the highest growth in home sales in 2024?
Ontario saw the highest growth in home sales, with a 10.1% increase in June 2024.
