This Week’s Wrap Up
Bank of Canada rate cuts, secondary suite programs, + Cedar Cottage open house.
On January 29, 2025, the Bank of Canada announced a 25 basis point reduction in its policy interest rate, bringing it to 3%.
Key Highlights
Policy Rate Reduction: The Bank of Canada lowered its policy interest rate by 25 basis points to 3%.
Asset Purchases Resumption: The Bank plans to restart asset purchases in early March, beginning gradually to stabilize its balance sheet this year before allowing it to grow.
Pros for Buyers in the Market
Lower Borrowing Costs: The reduction in the policy interest rate can lead to decreased mortgage rates, making home loans more affordable for buyers.
Increased Purchasing Power: With lower interest rates, buyers may qualify for larger mortgages, enabling them to consider higher-priced properties.
Potential for Price Stabilization: The resumption of asset purchases by the Bank of Canada may contribute to economic stability, which could help stabilize housing prices, benefiting buyers looking to enter the market.
Exciting news for all home seekers! This weekend, we're hosting an open house for a charming duplex in the heart of Cedar Cottage.
Open House Details
Date: Saturday, February 1, 2025
Time: 2:00 PM – 4:00 PM
Location: 1315 + 1317 E 18th
Why Visit This Duplex?
Spacious Living
Modern Amenities
Parking
Prime Location: Nestled in the vibrant Cedar Cottage neighborhood
Outdoor Space: A private backyard offers a serene escape for relaxation or entertaining guests
Highlights:
Energy Efficiency: Equipped with energy-efficient appliances and windows to help reduce utility costs.
Community Vibes: Experience a friendly neighborhood atmosphere with community events and local markets.
Transit Accessibility: Easy access to public transportation makes commuting a breeze.
The Canadian government recently introduced the Secondary Suite Refinance Program
Program Overview
Launch Date: January 15, 2025
Key Feature: Allows homeowners to refinance up to 90% of their property's value (capped at $2 million) to build secondary suites for long-term rentals.
There Are Still Unanswered Questions + Grey Areas Though
Eligibility Criteria: Details about who qualifies for the program remain vague, leaving homeowners uncertain about their eligibility.
Financing Logistics: Clarification is needed on how funds will be disbursed and managed throughout the renovation process.
Definition of "Distinct Secondary Suite": The term is ambiguous, causing confusion about what types of units are permissible under the program.
Permit and Zoning Requirements: Information on necessary permits and adherence to local zoning laws is lacking.
Inspection Criteria: Standards and processes for inspections have not been clearly outlined.
Application Process: Homeowners are uncertain about how to apply, with limited guidance provided.
Multi-Generational Homes: It's unclear if the program supports renovations aimed at accommodating extended family members rather than tenants.
Big changes in real estate! Lower rates, a must-see open house, and a new government refinance program—with a few details that are still unclear.
Got questions? Let’s chat! hello@barbmackenzie.com Hope to see you this weekend!