‘A sigh of relief:’ Regina broker pleased with Bank of Canada rate decision

The Bank of Canada holding its interest rate steady at five per cent comes as good news for one Regina mortgage broker.

“It’s a sigh of relief that we aren’t seeing another rate increase,” said Carrie Cardinal after Wednesday morning’s announcement by the central bank.

The Bank of Canada credits the economy cooling and inflation rates slowing as to why it was able to keep the rate at five per cent, though the bank did leave open the door for future hikes.

Wednesday’s announcement spells good news for those looking at buying a home, but Cardinal said she doesn’t think it’ll necessarily lead more people to head out house hunting.

“The rate holding steady, I think, is a good decision for people looking at buying homes. I don’t know if it’ll spur anyone else on, just because the cost of borrowing is high,” she explained.

Cardinal said she’s hopeful that if inflation gets under control we’ll see interest rates come down.

“The biggest concern is to not let (the rates) go any higher. Over time, hopefully they’ll come down,” Cardinal noted.

Cardinal added the rate holding steady means more people will be able to qualify for mortgages, and that allows people to set some fixed costs for a little bit of time.

The broker reminded prospective home buyers that they should still be cautious.

“I think the market is still good as far as if you’re looking to buy. There are still properties that are properly priced, and the interest rates are at a moderate level. I think people should still look at buying, but they need to be cautious with what the costs are,” Cardinal explained.

“They also need to be cautious that they’re getting pre-approved before going out and looking, because the cost of borrowing has gone up substantially in the last year and a half.”