Rate Cut Paradox: When Good News Isn’t So Simple in Real Estate
So — the Bank of Canada cut rates. Yay, right?
Well, kind of.
Here’s the paradox: even though the rate went down, fixed mortgage rates actually went up. Why? Because the Bank said, “That’s it. No more cuts for the rest of the year.” And investors didn’t love that. Bond yields jumped, and since fixed mortgage rates follow bonds — rates went up overnight.
That’s your rate cut paradox.
Despite All That, Here’s What I’m Seeing on the Ground
Everyone online keeps saying the economy is crashing, the market’s dead, inflation’s scary — all that noise. But what I’m seeing, working with real buyers every day, is the opposite. More people are actually buying.
Buyers who were sitting on the sidelines all year are finally peeking back in. They’re seeing that prices are down compared to last year. Rates — even after the bond bump — are still much lower than they were 12 months ago (from around 5% to roughly 2.25%). And there’s way more choice now — fewer bidding wars, more listings, and sellers actually willing to negotiate.
So maybe this “terrible market” everyone’s talking about is actually the opportunity.
Let’s Talk About What This Means for You
If you’ve been renting, here’s a little reality check: The difference between renting and owning right now might be as little as $300–$500 a month.
That’s it. For almost the same monthly cost, you could be paying toward your own equity instead of someone else’s mortgage.
And you don’t need a huge amount to start. For a $450,000 condo, you’d need roughly:
$22,500 down payment (5%)
$1,700 land transfer tax (after first-time buyer rebates)
$2,000 for legal fees
That’s around $26,000 to start your ownership journey.
Not nothing — but not impossible either.
So What Happens Next?
If the Bank of Canada really sticks to “no more cuts this year,” this might be your best window before the next wave of competition hits.
Buyers are slowly coming back. Prices are reasonable. Inventory is high. And with rates near their lowest point of the year, you might not need to time the market — just time your move.