Canada’s annual inflation rate has continued to decline, reaching 2.5% in July – the lowest level since March 2021. This steady decrease reflects significant progress in controlling high inflation and aligns with forecasts of a potential third consecutive interest rate cut by the Bank of Canada on September 4th.

As Andrew DiCapua, Senior Economist at the Canadian Chamber of Commerce, noted, "There's more to go in terms of reaching price stability as Canadians feel the pinch and pull back on spending, but we think the Bank of Canada will continue their path of interest rate cuts, prioritizing economic growth as inflation moderates.”

This would be promising news, especially for variable-rate mortgage holders or those with debts tied to the central bank's rate, as further rate cuts could result in lower interest payments. Additionally, lower rates can improve affordability for prospective buyers, making it a great time to consider entering the market or refinancing.

As your mortgage professional, I’m here to ensure your mortgage is working in your favour. Whether you’re looking to save on interest, considering a move, or simply want to understand how these changes might affect you, I’m here to help.

Reach out for a free no-obligation consultation to explore the options available to you.