Another BoC Rate Drop & What It Means for Homebuyers and Investors

On October 23, 2024, the Bank of Canada made a significant announcement, cutting its benchmark interest rate to 3.75%. This move comes as part of an effort to stimulate economic activity amid slowing growth and concerns about rising inflation. The interest rate drop has widespread implications, particularly for homebuyers, real estate investors, and the broader housing market. Here’s everything you need to know about the Bank of Canada’s rate drop, and how it could impact your real estate decisions.

What is the Bank of Canada’s Interest Rate, and Why Does It Matter?

The Bank of Canada’s interest rate, also known as the overnight rate, is the rate at which banks borrow and lend to each other on a short-term basis. This rate has a direct impact on the prime rate, which in turn affects variable-rate mortgages, lines of credit, and other types of loans.

When the Bank of Canada lowers the interest rate, borrowing becomes cheaper. This can encourage consumers and businesses to take out loans, invest, and spend more, which in turn stimulates the economy. For the real estate market, lower interest rates typically lead to lower mortgage rates, making it more affordable to buy a home or invest in property.

Why Did the Bank of Canada Cut Rates?

The decision to lower rates in October 2024 was driven by several factors:

1. Slowing Economic Growth: Canada’s economy has been growing at a slower pace than expected, with key sectors like manufacturing and exports showing signs of weakness.

2. Concerns Over Inflation: Despite ongoing inflationary pressures, core inflation remains below the Bank’s target, prompting the need for more accommodative monetary policy.

3. Global Economic Uncertainty: The global economy faces uncertainties, with geopolitical tensions and trade disputes affecting markets and investments. The rate cut is also a defensive measure to shield the Canadian economy from potential global shocks.

Impact on Homebuyers

For prospective homebuyers, the Bank of Canada’s interest rate drop is welcome news. Here’s how it affects you:

• Lower Mortgage Rates: The rate cut will likely lead to a reduction in both fixed and variable mortgage rates, making it cheaper to finance a home. For those on variable-rate mortgages, your monthly payments could decrease.

• Increased Affordability: Lower borrowing costs mean you can afford a larger mortgage, which could give you more options in a competitive housing market.

• Opportunity for First-Time Buyers: If you’ve been on the fence about entering the real estate market, this rate cut could make it easier to take the plunge. First-time buyers will benefit from more manageable monthly payments and lower overall costs.

Impact on Real Estate Investors

For real estate investors, lower interest rates present several opportunities:

• Cheaper Financing: Investors can refinance existing properties or take out new loans at lower interest rates, reducing the cost of borrowing and improving cash flow.

• Higher Property Values: Lower interest rates often drive demand for real estate, leading to increased property values. Investors may see their properties appreciate faster in a low-interest environment.

• Potential for Higher Rents: As more people may be able to enter the housing market, there could be increased demand for rental properties. This could allow investors to raise rents, improving their return on investment.

Potential Risks to Watch Out For

While the interest rate cut is positive for many, it’s essential to keep a few risks in mind:

• Increased Demand Could Lead to Higher Home Prices: As borrowing becomes cheaper, demand for homes may surge, especially in major cities. This could drive up home prices, potentially offsetting the benefit of lower interest rates.

• Variable Rate Risks: For those with variable-rate mortgages, it’s important to remember that while rates are lower now, they can rise in the future. If the economy rebounds strongly, the Bank of Canada could increase rates again, which would raise your mortgage payments.

• Overborrowing: With lower interest rates, it can be tempting to borrow more than you can comfortably afford. Be cautious and ensure that your budget can handle potential future rate increases.

What’s Next for the Canadian Real Estate Market?

With the interest rate cut in effect, we can expect increased activity in the real estate market. Homebuyers and investors alike will likely take advantage of the lower borrowing costs. However, as demand increases, so too could home prices, especially in already tight markets like Toronto and Vancouver.

For those in the real estate industry, it’s crucial to stay informed about future rate changes and their potential impact. The Bank of Canada will continue to monitor the economy closely, and additional rate cuts or increases could follow, depending on economic conditions.

Final Thoughts

The Bank of Canada’s decision to lower interest rates on October 23, 2024, is a game-changer for the real estate market. For homebuyers, it presents a golden opportunity to secure lower mortgage rates and make homeownership more affordable. For investors, the rate cut provides a chance to capitalize on cheaper financing and potentially rising property values.

If you’re considering buying or investing in real estate, now is the time to take action. As always, it’s essential to consult with a financial advisor or mortgage broker to understand how this rate cut affects your specific situation.

Need help navigating the real estate market in this new rate environment? Contact me today to discuss your options and find the perfect property for your needs!

Exclusive Discounts at Sherwin Williams Paint

I’m thrilled to announce that my agency, M Immobilier is partnering with the fine people at Sherwin-Williams. What does this mean for my clients? It means, unbeatable discounts on the entire Sherwin-Williams® product line!

When it comes to making a house feel like home, we all know how impactful a fresh coat of paint can be.

Whether prepping a house to hit the market, giving your new house a personal touch, or simply touching up some lived-in spots that could use a little TLC, Sherwin-Williams has the product you need to show any home in its best light.

Contact me for instructions on how to redeem your discount.

Off Market Listing: 375 St Paul E. For Rent.

OFF MARKET LISTING!

I’ve got one hell of a place for you today. Welcome to 375 St Paul. This 5 unit apartment building is located in the heart of the Old Port. Look out the window and you’ll see Market Bonsecour and La Cave a Manger, right across the street. To your right sits Maison St Paul. Suffice to say, you’re right in the middle of the action.

This 2 Bed / 1 Bath Apartment is FULLY furnished and decorated with plenty of space at 1150 sq-ft.

$3500/m

Contact me now to book a visit.

BoC Takes Bold Step with Interest Rate Reduction to 4.75%

On June 4th, 2024, the Bank of Canada made a significant announcement that sent ripples through the financial world: a reduction in interest rates. This decision, though anticipated by some, still raised eyebrows and stirred discussions among economists, investors, and the general public. Let's delve into the details of this bold move and its potential implications.

Economic Context

The decision to lower interest rates comes amidst a backdrop of mixed economic signals. While some sectors have shown resilience, others continue to struggle with various challenges. The global economy, too, remains in a state of flux, with geopolitical tensions and trade uncertainties adding to the complexity.

Domestically, Canada has been navigating through a period of transition. The recovery from the pandemic-induced downturn has been uneven, with certain industries rebounding faster than others. Additionally, inflationary pressures, though subdued, remain a point of concern for policymakers. In this context, the Bank of Canada's decision to ease monetary policy signals a proactive approach to support economic momentum and ensure price stability.

Implications and Considerations

The interest rate reduction carries implications across various segments of the economy:

1. Borrowers: Lower interest rates translate into reduced borrowing costs for consumers and businesses alike. This could spur increased spending on big-ticket items such as homes, cars, and capital investments. Additionally, lower rates may incentivize refinancing activities, providing relief to existing borrowers.

2. Savers and Investors: While borrowers stand to benefit from cheaper credit, savers and investors may face challenges. With interest rates at historic lows, yields on savings accounts, bonds, and other fixed-income investments may remain subdued. As a result, investors may need to reassess their portfolio strategies to adapt to the new interest rate environment.

3. Currency and Trade: Changes in interest rates can influence currency exchange rates, impacting international trade dynamics. A lower interest rate may lead to a depreciation of the Canadian dollar, making exports more competitive but potentially raising import costs. Export-oriented industries could see a boost, while import-dependent sectors may face headwinds.

4. Inflation and Price Stability: One of the primary objectives of monetary policy is to maintain price stability. The Bank of Canada's decision reflects its commitment to anchoring inflation expectations within its target range. By providing accommodative monetary conditions, policymakers aim to support economic growth while guarding against deflationary pressures.

Looking Ahead

The Bank of Canada's interest rate reduction sets the stage for a nuanced economic landscape in the coming months. While the immediate impact may be felt through changes in borrowing and spending behaviors, the full ramifications will unfold gradually. As always, policymakers will closely monitor economic indicators and adjust monetary policy as needed to foster sustainable growth and stability.

Market Update: Inflation Under 3% For 1st Time In 3 Years

Some more good news coming out of the markets today that will be positively affecting your ability to purchase, sell or invest in real estate. The Fed will be making an announcement at 2PM today but we should already be happy that the inflation rate has come in below projections at 2.9%, official marking it as the first time the inflation rate has fallen below the 3% mark in 3 years. On a six-month annualized basis, it's under 2%!

Here’s the 3 most important announcements that will affect interest rates and inflation.

• Wednesday's Fed rate announcement

• Wednesday's Canadian GDP

• Friday's U.S. job numbers.

Now, let’s shift gears to the current interest rates:

Insured 5 Year fixed starts at 4.94% and 5.19% for 20% down or +
Insured 5 Year Variable starting at 6.25% and 6.60% for 20% down or +
Conventional (rentals / 1M + purchase price) starting at 5.19% fixed 5 years,

6.60% variable.
6.30% 5 Year-Variable (w/ 35% down)

1 Year fixed starting at 6.64% (Insured)
2 Year Fixed starting at 5.99% (Insured)
3 Year fixed starting at 5.14% (Insured)

FOR SALE: 4314 de Lorimier in The Plateau

Welcome to 4314 de Lorimier in The Plateau.

This Elegant, Gothic Style condo has this great old school, trendy feel with these gorgeous arched doorways. Located on the 3rd level of a triplex close to the Lafontaine Park and at a short distance from boutiques and restaurants on Rachel street. You’re right in the middle of the action with some of the most popular bars, cafe’s and restaurants in the city.

The living room is one of my favourite rooms in the unit with a white brick wall. Plenty of room for a big screen TV and you can even add a desk for a home office section.

Then we have the kitchen. A beautiful, fully equipped, viking kitchen with stone floors and steel counters. A cook’s dream!

Enjoy 2 private balconies and a driveway with 2 parking spots!

Click below for more information or call me 514.892.4889 to schedule a visit

PRICE: $698,000

Off Market Luxury Listing In The Golden Square Mile

OFF MARKET OPPORTUNITY: Have you been looking for a luxury condo in Downtown Montreal? I just picked up a listing that will blow all others out of the water. This is an exclusive off market property, delivering in August 2024, so I can’t give all the details online but below is a list of important details:

DETAILS

• 2 Bedroom / 2 Bathroom

• 860 Sq-Ft

• 212 sq-ft balcony

• Corner Unit

• High Floor

• One Indoor Parking Spot & One Storage Unit Included

• Located Downtown in the Golden Square Mile near The Bay

• Luxury Development by a top tier developer

BUILDING AMENITIES

• Concierge

• Fitness Center

• Valet Parking

• Rooftop Terrace

• Pet Grooming

• Coworking Areas

• Garden Courtyard

• Gated Community

• Basketball Court

• Cinema Room

• Reading Room

• Yoga Room

• Sky Lounge

• Game Room

• Full Spa

• Dog Park

• Whiskey Bar

Rate Update: Thing

2024 is here and the fixed rates continue to drop with the Big 6 banks also jumping into the competition. We also see our first rate starting with a four and after the past few years we’ve had, that’s some excellent news. Pundits continue to estimate a resting rate in the low to mid 4’s within 2024 but only time will tell, there are no guarantees when it comes to rates! Below are some of important rate updates to pay close attention to if you’re considering purchasing a home.

Rate Summary As of January 12th 2024

Feeling a bit lost? Don’t worry, you’re not alone. Contact me to discuss what these rates mean for you and how to take advantage of them to get the best price possible on your purchase.

New Rental: 90 Prince (Old MTL)

Welcome to 90 rue Prince. Home of Le M9 Condos. Live at the very centre of some of Montreal's finest attractions.

Start your morning by walking a mere few feet to Cafecito and picking up a delicious coffee. Enjoy dinner at some of Montreal's finest restaurants like Fish Bone or eat in and shop for groceries just a walk away! This 900 sq-ft, 2 bed, 2 bath condo boasts a huge master bedroom and spacious bathrooms and a fully equipped, large kitchen. Fully furnished and ready to move in.

• Condo Features

  -Fully Furnished, Turn Key
  -Large main bedroom
  -Spacious Bathrooms
  -Stainless Steel Appliances
  -Washer/Dryer Included
  -Modern loft style

• Building Amenities

  -Fully equipped gym
  -Pool
  -24hr Security
  -Bicycle Parking
  -Large Storage Space
  -Private courtyard

New Rental: 101 Peel (Mary Robert Condos)

One of two new rentals I’ve really signed on, 101 Peel is easily one of my favourite Griffintown condos. Not only is the apartment a total stunner but you should see the Mary Robert building.

Live at the very centre of some of Montreal's finest attractions. Start your morning by getting your caffeine fix a few feet away at Cafe Bodega.. Enjoy dinner right across the street at Moretti or eat in and shop for groceries just a walk away! This 845 sq-ft, 2 bed, 1 bath condo boasts a huge master bedroom and spacious bathroom and a fully equipped, large kitchen. Fully, beautifully furnished and ready to move in.

• Condo Features

  -Fully Furnished, Turn Key
  -Large main bedroom
  -Spacious Bathrooms
  -Stainless Steel Appliances
  -Washer/Dryer Included
  -Modern loft style

• Building Amenities

  -Fully equipped gym
  -Nordic Spa
  -Pool
  -24hr Security
  -Concierge
  -Bicycle Parking
  -Large Storage Space
  -Private courtyard

Market Update: Bank of Canada Holds Rate at 5%

In some very important news this week, the Bank of Canada has decided to hold their rates at 5% for a third consecutive meeting. Considering the turbulent changes we’ve witnessed in rates for the past year, this is some considerably good news.

What does this mean for current mortgage holders? Anyone who currently has a variable rate or a HELOC are well positioned now that inflation is moving in the right direction Furthermore, this could mean rate cuts at some point in 2024.

Does this mean buyers should be jumping into the market? In a word, yes. Experts are expecting 2024 to be an unpredictable year. Interest rate changes will depend on a variety of factors and can go up or down. Now that we’ve got a pause at 5%, this would be a good time to grab a property.

Worried you’ll miss possibly lower rates next year? A variable mortgage may be a good move for you to benefit from any potential rate drops.

But, don’t worry about all that. All you need to do is contact me, and I’ll make sure you’re in good hands.

New Rental Listing: 4314 de Lorimier in The Plateau

Welcome to 4314 de Lorimier in The Plateau.

This Elegant, Gothic Style condo has this great old school, trendy feel with these gorgeous arched doorways. Located on the 3rd level of a triplex close to the Lafontaine Park and at a short distance from boutiques and restaurants on Rachel street. You’re right in the middle of the action with some of the most popular bars, cafe’s and restaurants in the city.

The living room is one of my favourite rooms in the unit with a white brick wall. Plenty of room for a big screen TV and you can even add a desk for a home office section.

Then we have the kitchen. A beautiful, fully equipped, viking kitchen with stone floors and steel counters. A cook’s dream!

Enjoy 2 private balconies and a driveway with 2 parking spots!

5 Month Lease Term

Click below for more information or call me 514.892.4889 to schedule a visit

New Rental Listing: 6001 Boul. Lasalle, Verdun

Welcome to 6001 Boul Lasalle in Verdun.

Meticulously designed & fully renovated, offering 1,530 SF of living space with 1 garage parking spot, 2 +1 spacious bedrooms with a mezzanine, 1+1 baths, a fully equipped kitchen with stainless steel appliances, balcony, and private terrace.

Enjoy the luxury of a mezzanine level, perfect for a home office, entertainment area, or whatever you desire as well as cathedral ceilings, engineered hardwood flooring throughout and large windows providing a cavalcade of natural light along with a stunning view of Parc du Quai de la Tortue.

6 Month Lease Term

Click below for more information or call me 514.892.4889 to schedule a visit

Teaser of My Visit to 1 Square Phillips

A quick teaser for my upcoming video of my visit to the 1 Square Phillips Condo development. Cars, courtesy of my friend Mr. Jeremy Yassa of Kapitale Leasing.

Welcome to Eran Dahan Real Estate 1.0.

In today's fast-paced world, finding the perfect home or investment property can be a daunting task. Whether you're a seasoned property investor or a first-time homebuyer, having a reliable and efficient real estate broker by your side is crucial. That's why I'm thrilled to introduce you to my new website, designed to make your property search and transaction process smoother and more enjoyable than ever.

I've had the privilege of helping countless clients find their dream homes and lucrative investment opportunities. My commitment to excellence and personalized service has earned me a stellar reputation in the real estate community.

My personalized service goes far beyond the bounds of real estate. Whether it’s a new home, car, insurance, financial expertise, furniture, you name it, rest easy knowing I can help with ALL your needs.

I look forward to sharing this journey with you.

New Construction & Development Announcement

Last week, I attended my agency, M Immobilier’s member event announcing our new, New Construction & Development Department. Trust me, this is a big deal.

This department puts me in the ultimate position to help my clients looking to invest in a new construction project by being equipped with unprecedented access to new developments as well as expertise in the process.

In the coming 2 years, you will be seeing and HAVE been seeing tons of announcements on new condo buildings springing up. This will occur most notably in downtown but there’s plenty happening in other areas like Kirkland, Pointe Claire and more.

Never bought or invested in New Construction? Contact me today and let me help get you up to speed :)