Big News **** The Bank of Canada held its final interest rate meeting of the year this morning and concluded 2024 with a 0.50% cut to the key interest rate.

That's 5 consecutive rate cuts since June, and a total of 1.75% in rate cuts this year.

This cut means 2025 will begin with a Bank of Canada Prime rate of 5.45%, placing most variable-rate mortgages in the range of 4.45%–4.90%, depending on your discount to Prime.

In the post meeting Q&A when Tiff Macklem was asked about further rate cuts, he answered that further reductions will be considered, but they will likely take a more "gradual approach" at further meetings. At the end of the day, they are making their decision one meeting at a time.

Either way, this rate cut today is a huge help to variable rate mortgage holders.

My mortgage partners are also finding rates as low as 3.99% for fixed rate mortgages. This is also a relief to those renewing their mortgage, from a 1-2% covid rate, and will help prevent many distress sales.

Forecasts vary for 2025 real estate prices, but generally they're all optimistic, ranging from a 2.8% to 6% average price increase by year end.

2025 is full of possibility!

If you're considering a big move next year, please reach out to see if I can help!