First-time buyers slow down despite lower interest rates

Geneviève Langevin shares her expertise in La Presse on the impact of lower interest rates on first-time buyers. 

Geneviève Langevin shares her expertise in La Presse on the impact of lower interest rates on first-time buyers. 🏠📉

Discover its insights into this evolving market!

Article summary

The recent 25-point cut in the key interest rate is unlikely to trigger an immediate rush to buy property, according to experts. Although buyers’ curiosity is turning into action, many prefer to wait for future rate cuts before finalizing their projects. 

Véronique Caron, broker at Multi-Prêts, observes that her customers are now more inclined to move ahead with their real estate projects. Buyers, especially first-time buyers, are choosing to wait for a home that better matches their aspirations, rather than cutting back on their budget. The market seems to be driven by well-informed buyers who are aware of the financial tools available, such as the CELIAPP or 30-year amortization. 

However, caution remains the watchword. According to Geneviève Langevin, of Royal LePage Altitude, despite the increase in multiple offers and what promises to be a more active autumn, buyers are not rushing into the market, anticipating further rate cuts to come. Philippe Simard, Mortgage Director at Ratehub, also predicts a gradual recovery, as many buyers may still prefer to wait for a more significant cut. 

Despite these hesitations, the announced reduction will still enable some homeowners to reduce their mortgage payments by around $840 a year, according to calculations based on the average price of a house in Quebec.