The Bank of Canada has finally announced a rate cut. My name is Vincent Tong, I'm the principal broker at DLC. Clear trust signature mortgages, and that's unpack what this means for Canadians.

But inflation sitting around 2.7 percent and it's been around this range since January of 2024 and GDP data coming out on Friday be around 1.7 percent which is a little lower than expected. I think that there will be more rate Cuts in the future. The Bank of Canada probably doesn't want to cut rates too quickly, and too prematurely pushing us back into high inflation territory. And they also don't want to weaken our dollar too much relative to our us counterparts. I

for individuals, looking for a mortgage right now, it's definitely High time to talk to your real estate advisor, your mortgage advisor because there's a lot of competition in the market. We've already seen cash offers go in multiple offers, and there is definitely enough demand pent up in the market and that's where mortgage brokers come in. We're able to kind of look at more options for you. And that might be the deal breaker for winning the offer or not on that potential, real estate piece. So, for those individuals thinking, oh,

Point two five percent rate cut not that big of a difference. You know truthfully it isn't that big of a difference. We're looking at about only $15 per hundred thousand dollars in mortgage. Would I wait longer personally, I wouldn't because of competition and price increases. So if you were to wait for a lower rate, like a lot of Canadians are or looking to kind of Leverage it and a lower rate environment, your price might go up by five, six, seven percent. So that difference you're waiting for 4.25 or 0.5 or 0.75 might be

far outweighed by the price increase of potential 5% more by the end of the year.

So for individuals on variable rate mortgages, you know there's two different types. There is a true variable, a static variable rate, mortgage or an adjustable rate mortgage for those who are on a static variable, they probably haven't seen their payments go up in the past two years they're amortizations probably extended a bit but their payments have likely stayed the same unless they hit their trigger point, the story's a little different for adjustable-rate mortgages. People have seen their payments likely go up 40 to 50 percent in the past.

Two years. So those people will see some immediate relief and their mortgage payments. In terms of the fixed rate Market, I'd say that we might not see some immediate decreases just yet a lot of the bond yields and the fixed rate mortgage is due track bond yields instead of the prime rate. Allow the bond yields have already dipped a bit since the potential rate discount. And now it's been realized today because the bond market tracks fixed-rate mortgages investors have been buying a bonds and decreasing the yields. So fixed rates have already kind of

creased in the past few months, my advice to clients always the same invest with intention. I'm never a big fan of thinking that buying real estate is to for a quick Flip or for a quick dollar. Make sure that it's within your financial plan and I think investing in real estate is the way to go.