Bank of Canada CUTS RATES 0.25% – June 2024

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  • Bank of Canada cuts rates 0.25%
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  • They have confidence inflation will hit their 2% target
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  • Growth has stalled in Canada with the economy in excess supply
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  • There are 4 remaining meetings in 2024, and economists predict an additional 0.5% (0.75% total) of rate cuts by the end of the year
  • Lowering rates can be a tailwind for real estate prices as a 1% reduction in rates improves buying power by roughly 10%>
  • For more updates and insights, follow @zupanmortgages on Instagram for daily content


Ladies & gentleman, for the first time in 4 years, the Bank of Canada has CUT INTEREST RATES 0.25%. Cigarette anyone? Man, that was not a ride I think anyone wants to go on ever again.

What I find interesting is if you read the release & leave out the part about cutting rates, you’d never guess based on their description they’d be cutting rates. It’s not exactly a stinky description of our domestic & global economy but for variable rate mortgage holders & those with upcoming renewals, this is a big sigh of relief. Side note, but 76% of all mortgages in Canada are going to be renewed in the next 2 years & that was certainly on the Bank of Canada’s radar. I’m seeing more & more mortgages getting renewed with payment jumps of $1k, $2k / month, and that just takes away money you can spend elsewhere in the economy to keep things flowing.

Overall, the Bank sees inflation easing enough that they have confidence it will hit 2% (what could go wrong?) & with growth floundering & the economy in excess supply, they’re making life just a little bit easier. We have 4 remaining meetings in 2024. Big Bank economists are hovering around 0.5% in additional rate cuts by the end of the year for 0.75% total. No guarantees there but that at least gives an idea of what we might see.

So what happens now? Do we see real estate pick up as buyers who’ve been on the sidelines, hoping to buy before rates really drop, start moving to action? 0.25% makes little difference in what people qualify for but if rates get down by, say, 1% by early next year that improves buying power by roughly 10% so all else being equal that’s a tailwind for prices. It’s going to be a bumpy road down, I am sure, but this rate relief is a welcome treat & is sure to spring my oilers to victory. We’ve been focusing more content on our Instagram page @zupanmortgages. Look us up if you don’t already follow, give us a share & let me know how you’re liking the content as we do our best to keep you up to date.