ESPRESSOLD

25 | Supersized Rate Cut Breakdown

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Segment 1: Why the Jumbo Cut?

  • Inflation in Canada has dropped significantly:
  • The effect of deflation:
  • Employment rates have worsened:
  • Bottom line: The supersized rate cut aims to stimulate the market again, encouraging consumers to spend and businesses to invest.

    • Segment 2: Impact on Mortgage Payments

    • For every $100,000 of mortgage, expect a $30/month reduction.
    • Example: A $600K mortgage could save homeowners around $180 per month.
    • Who benefits first?
    • Long-term effects: It might take 1-1.5 years for the average consumer to fully feel the economic impact.

      • Segment 3: What if Your Mortgage is Up for Renewal?

      • 2.2 million mortgages will be up for renewal between now and 2026 (5-year fixed rate holders).
      • Best news for those renewing soon as interest rates drop.

        • Segment 4: What About Home Prices?

        • Calgary housing market: Are prices at their peak, or will we see another rise due to increasing competition? This is a key question to watch.
        • Next interest rate announcement: December 11—an important date to keep an eye on for further developments.

          • ...more
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          ESPRESSOLDBy Annie & Paula