Newcomers need to understand Canada’s job market before and after arrival to make it easier to find a job. The latest Canada job market report for October, 2024 was good news for newcomers and international students, as the number of jobs created was solid, and unemployment remained unchanged from September.
According to the latest Statistics Canada job market report, the unemployment rate in October was unchanged at 6.5%, which is what most economists predicted.
The Canadian economy grew by 14,500 jobs, compared to many economists’ predictions of a gain of as high as 27,000. These sectors saw job gains in October:
Manufacturing (10,000+)
Construction (6,000+)
Business/building/other support services (jobs that support the day-to-day operations of organizations, from waste management to administrative services and call centres (29,000+).
Education (12,000+)
Accommodation and food services (12,000+).
The finance, insurance, real estate, rental, and leasing sectors saw a drop in jobs.
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Alberta added the most jobs in October with 13,000 jobs, New Brunswick added 3,300 jobs, and Prince Edward Island lost 1,100 jobs.
Canada Job Market Remains “Resilient”
Derek Holt, Scotiabank’s Vice President and Head of Capital Markets Economics, says the gain of almost 15,000 jobs in October “keeps the trend resilient.” He described the job market report as “an okay set of numbers that offer mixed perspectives on the labour market and economy.”
According to the report, youths, full-time employment and the private sector drove all the job gains, but hiring across the economy was described as weak.
How Do Inflation and Interest Rates Affect the Job Market in Canada?
With inflation in Canada now at 1.6% and below the Bank of Canada’s target of 2%, many economists predict that employment will rise in 2025.
Also, the Bank of Canada lowered its interest rate by .50 basis points to 3.75% from 4.25% in October. This move is expected to impact the economy, particularly the housing market, which has seen sales and prices decline sharply due to high interest rates. Economists predict the cuts will bring more homebuyers into the market in 2025.
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Another interest rate cut by .50 basis points may happen on December 4, 2024.
Some Canadian economists predict continuing job market weakness in the months ahead before the Bank of Canada’s interest rate cuts impact economic growth in 2025.
After last month’s rate cut decision, Bank of Canada governor Tiff Macklem said layoffs had remained modest. Still, business hiring has been weak, which has affected young people and newcomers to Canada. Macklem believes continued rate cuts will help grow the economy and increase employment.
Nathan Janzen, assistant chief economist at RBC, said the latest data shows “more urgency” for the central bank to announce another steep interest rate cut to stimulate the economy.
Meanwhile, strong wage growth continues in the Canadian job market, with average hourly wages in October up 4.9% from October 2023. This trend is also expected to continue in the short term.
Highlights for Newcomers from the October Job Market Report:
Canada’s labour force has grown by 2.% since October of 2023.
Average hourly wages rose 4.9% from last year, up $1.68 to $35.76 an hour.
The youth employment rate increased for the first time since April 2024 but has fallen 2.7 percentage points year over year.
The employment rate continues to shrink, with October showing a further decline to 60.6% from 61.9% in October 2023.
Hourly hourly wages rose 4.9% from last year, up 1.68 to $35.78. However, almost 30% of Canadians aged 15 or older lived in a household with difficulty meeting financial needs such as food and housing in the previous four weeks.
Four out of 10 immigrants who arrived in 2023 were also more likely to report facing financial strain in October. For more established immigrants, that number is three out of 10 and one in four for people born in Canada.
Job Outlook for Canada
Brendon Bernard, a senior economist at hiring website Indeed, points out that October brought “more of the same” for the labour market.
“Employment eked out modest gains, once again swamped by still strong population growth,” said Bernard.
This is now a familiar pattern, with population outpacing job growth in 2024 except for one month. This pattern is expected to continue into 2025 until new restrictions on the number of temporary foreign workers and international students admitted into Canada finally impact the job market.
Wage increases are also expected to continue into 2025.
“The job market isn’t delivering for those out of work, but for those in stable employment, pay gains are looking healthy,” Bernard said.
For the remainder of 2024 and into 2025, newcomers should pay attention to job market trends that will affect their job search, such as:
Increases or decreases in Canada’s inflation rate
Decreases in consumer spending
Decreases in government spending.
The recent election in the United States may also impact job market trends in Canada, mainly if the new Republican government goes ahead with its plan to impose tariffs on foreign-produced goods. Canada is America’s number one trading partner.
October Unemployment Rates in Major Canadian Cities:
The unemployment rate is a measure to understand the economy’s health and the job market.
Immigration and What it Means for Canada’s Job Market
On October 24, 2024, Immigration, Refugees and Citizenship Canada (IRCC) released its new immigration targets for 2025 – 2027. The new plan and lower targets aim to reduce pressure on housing and other services. While housing costs are going down, they remain high. The changes will occur across all permanent residence categories. Canada has also reduced the number of temporary foreign workers and international students it welcomes.
YEAR
PERMANENT RESIDENCE TARGETS
2025
395,000 (down from 500,00)
2026
380,000 (down from 500,000)
2027
365,000
The new plan will result in a population decline of 0.2% in 2025 and 2026 and an increase of 0.8% in 2027.
Economists like Scotiabank’s Derek Holt predict these population growth policies will impact the job market and labour force in 2025. The changes aim to close the uneven gap between high population growth and job creation.
With a rapidly changing job market, it’s increasingly important to consider how changes will affect job prospects in your specific industry and occupation.
Job Market Summary
Understanding job market trends is essential for newcomers who want to continue their careers in Canada. The continuing solid growth in full-time jobs created in October, combined with low inflation and falling interest rates, indicates a resilient Canadian economy. Employment rates remain stable in the critical 25-54 year-old age group.
Researching job prospects and the outlooks for your profession in Canada is the key to your success. It will make it easier to continue your career if there is a strong outlook for your profession. You can research Career Pathways for more than 20 occupations in Canada.
Housing costs (rent and homebuying) are falling in some cities, such as Toronto and Vancouver. This is also good news for the Canadian economy and newcomers. Choosing a destination city with affordable housing options and strong job prospects will lay the foundation for newcomer success.
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
For homeowners in Canada with a mortgage to pay and spare rooms to rent, becoming a homesharing host can help solve financial and personal needs. All homeowners quickly discover that homeownership comes with costly expenses, including the mortgage, insurance, monthly maintenance, and daily living expenses. Despite the costs, homeownership remains the goal of young Canadians and newcomers, even with the high home prices and mortgage rates, according to a recent Scotiabank survey. Renting out that spare room and welcoming housemates as a home share host can help lower your monthly homeownership costs.
Discover the benefits of becoming a homesharing host and how to do it!
Homesharing Can Reduce Homeownership Expenses
Renting out a spare room can bring Canadian homeowners valuable extra income via home share to help pay their mortgage and bills. Becoming a home share host is a solution that can bring financial relief, whether you’re an empty nester, a struggling young homeowner, or a newcomer to Canada homeowner. It also enables homeowners to make new friends and gain companionship.
The 1.4 million Canadians who got a mortgage in 2020 or 2021 may have seen their median monthly mortgage cost increase by $420, or 30 percent, upon renewal. Even though the Bank of Canada continues to lower interest rates, many homeowners renewed their mortgages when or just after the rate reached a high of 5 percent in 2023.
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Renting out a spare room can ease that financial pressure. It also provides affordable rental housing for newcomers and international students.
Homesharing hosts rent spare bedrooms to long-term housemates for rent (and possibly help around the house and companionship). While the homesharing concept isn’t new, Prepare for Canada and Sparrow Share have partnered to offer a unique and fulfilling path for Canadian homeowners to become homesharing hosts.
Sparrow estimates that there are over 12 million empty bedrooms across Canada.
Homesharing in Canada Made Easy
Canada will welcome 395,000 immigrants in 2025 and 380,000 in 2026. That’s in addition to tens of thousands of international students and temporary foreign workers looking for affordable housing. Rental demand and rent asking prices nationwide remain high for renters.
Homesharing, done right, is a safe, reliable, hassle-free process that benefits both hosts and renters.
Homesharing in Canada Means More Rentals
In Ontario, it’s estimated that more than half of residents, and three-quarters of those over 65, live in houses larger than they need. According to the Canadian Centre for Economic Analysis, that adds up to five million spare bedrooms across Canada’s largest province.
Sparrow Expertly Matches Hosts and Housemates
Oren Singer, the co-founder and CEO of Sparrow, says Canada needs “to do a better job of making it easier and safer for newcomers to find good housing options in Canada.” “There’s a ton of underutilized housing space in the form of spare rooms and basements,” said Singer.
Making Sure Homeowners Get the Right Price
Dave Frattini, Managing Partner of Prepare for Canada and Rentals for Newcomers, says the Prepare for Canada/Sparrow initiative offers a simple, turnkey homesharing service to help homeowner hosts find a pool of compatible housemates.
To ensure accountability, Sparrow verifies every potential renter through background, credit, and income checks. Their matching algorithm finds renters who complement the homeowner’s lifestyle.
Sparrow also ensures that the homeowner’s room rental is the optimal price. They collect and report rent payments to credit bureaus to motivate renters to pay on time.
Housemates can rent a room for as little as two months or up to a year.
Homeowners who want to become homesharing hosts can list their rentals and create a profile for free. A service fee for hosts is only charged once the host has received the first rental payment from the housemate.
The host service fee (a one-time-only charge) ranges from 1/4 – 1 month’s rent, depending on the length of the homesharing contract. There are no service fees for housemates.
TERM LENGTH
ONE TIME ONLY HOST SERVICE FEE
1 -3 months
1/4 month’s rent
4 – 5 months
1/2 month’s rent
6 – 9 months
3/4 month’s rent
10 – 12 months
1 month’s rent
Benefits for Canada Homesharing Hosts:
Becoming a homesharing host offers many benefits, including:
Enjoying the companionship of a like-minded housemate.
Reducing your mortgage payment and the burden and stress of home maintenance.
Playing a vital role in easing Canada’s housing crisis.
Helping newcomers and international students settle successfully in their new country.
Watch a Canada Homeshare Host Share Her Experience:
Brigitte Sharpe of Toronto decided to become a Sparrow homesharing host after her son moved out.
“I’ve got a second room,” said Sharpe. “It’s very difficult for people to find spaces, so I thought I would give it a shot.”
Sharpe says that she and her housemate of six months bonded and now have a friendship. She believes that they will definitely get together in the future.
“We’re on a mission,” says Frattini, “to help newcomers enter the rental market faster and easier by connecting them with homeowners and newcomer allies who can provide safe and affordable housing.”
“We look forward to reaching out to any homeowners across the country who want to contribute to building this innovative housing solution for newcomers.”
And, of course, for homeowner hosts, there are the benefits of “having someone around.”
“I recently spoke with one of our hosts who’s been renting out her spare room to a PhD student from the University of Toronto for about a year now,” said Singer.
Creating a Sense of Community
“She shared that, while the extra income has been helpful, the biggest benefit has been the peace of mind that comes with having someone around.”
Singer said that this reminds him “how homesharing isn’t just about financial stability, it’s about creating a sense of community.”
Canadian homeowners can earn a national average of $591 monthly or about $7,000 yearly by renting a room in their homes.
Homeowners in large city regions such as Vancouver and Toronto can make over $15,000 yearly.
58 percent of homesharing hosts are over 50 and retired.
51 percent of housemates are under 30 and just starting their careers or getting an education.
Over 62 percent of homesharing hosts and housemates are women.
Homesharing hosts and housemates speak over 40 unique languages. They also have many interests, such as travel, fitness, arts, culture, fashion, sports, gaming, and photography.
With rising homeownership expenses, becoming a Canada homesharing host may be the boost you need!
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
For newcomers and international students arriving in Canada, the current rate of inflation affects how much you pay for housing, groceries, transportation, and other expenses. Staying informed about inflation changes can help you budget and manage your finances. Stay up-to-date with recent changes so you can manage the cost of living in Canada.
The most recentStatistics Canada data(June 2024) shows the annual inflation rate fell from 2.9 percent in May to 2.7 percent in June. This rate drop is welcome news for immigrants who have recently arrived or will soon arrive.
Lower gasoline prices were the driving force behind the rate drop.
What is contributing to the current rate of inflation?
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Durable goods (cars, home appliances, consumer electronics, furniture, sports gear, toys, etc.) fell by 1.8 percent, which also helped lower the rate.
More good news for newcomers is that cell phone services were down 12.8 percent in June compared with 19.4 percent in May. Canada has some of the highest mobile phone rates in the world.
Clothing and footwear prices also edged lower in June. Service prices rose 4.8 percent annually in June, compared with a 4.6 increase in May.
Some costs and services that led to the June inflation drop:
COST OR SERVICE
CHANGE
Durable Goods (furniture, appliances)
Down 1.8% year over year
Used vehicles
Down -4.5% amid improved inventory levels compared with a year ago
Travel tours
Down 11.1 compared to a year ago
Recreation/Leisure
Down 0.5% in June after a 0.4% gain in May
Cell phone services
Down 12.8% in June compared to May 2024
Gas prices
Rose just 0.4% in June compared to 5.6% in May
Price for fresh fruit
Down -5.2% in June compared with May (-2.8%)
Newcomers can monitor inflation in Canada to help budget for costs.
Housing inflation is a concern for immigrants
“Shelter inflation,” or the costs involved inhomebuyingandrenting, was still more than double the primary rate of inflation in June. Shelter prices in Canada increased by 6.2 percent over the last year and continue to be the primary cause of higher inflation.
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While rent growth has slowed in recent months in Canada’s largest cities,TorontoandVancouver, some popular rental markets, such as Alberta, continue to have rental price growth. Rent prices in Canada rose 9 percent in June compared to June 2023.
So, will the drop be enough to convince the Bank of Canada (BOC) to cut its key overnight lending rate gain?
Will an interest rate cut follow the inflation report?
The BOC lowered interest rates from 5 percent to 4.75 percent in June 2024. That cut was the first in four years, and the first time the rate fell below five percent since July 2023.
The Bank will meet on July 24 to discuss whether current economic conditions warrant further cuts.
Derek Holt, Vice President and Head of Capital Markets Economics for Scotiabank believes that “the BOC is still likely to cut” in July, which would be good news for immigrants.
Canada's inflation rate target remains 2%
The BOC has set a target of two percent inflation. Inflation hit a high of 8.1 percent in June 2022, just as the Canadian economy was recovering from the pandemic. The BOC hiked interest rates 10 times between March 2022 and the summer of 2023 to control inflation.
The BOC believes that making it more expensive for Canadians to borrow money forces consumers and businesses to spend less, thus lowering prices and slowing the economy.
Themost recent employment reportfor June revealed that the Canadian economy lost 1,400 jobs. The unemployment rate increased to 6.4 percent, meaning 1.4 million people were unemployed in June, an increase of 42,000 from May.
According to the latest report from the IRCC, monthly immigration to Canada rose by 22 percent in April. It increased again by 9.3 percent in May, with 46,550 newcomers that month,
That puts the total number of new permanent residents arriving in the first five months of 2024 at 210,865.
The details of the report are consistent with the backdrop of consumers becoming increasingly cautious with discretionary spending.
Benjamin Reitzes, BMO economist
Inflation is a major concern for immigrants and international students who have arrived in Canada or are arriving soon. The cost of living in Canada affects many basic items and services essential to newcomers’ daily lives.
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
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Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
For many newcomers, buying a home in Canada is a dream that can help set roots and build equity. Following the housing market will help you research Canada home prices and discover affordable cities and regions. Researching the housing market is vital when considering what city to settle in, where, and when to buy a home.
For immigrants eager to buy a home, the Canadian housing market remains in a “wait and see” mode. As the Bank of Canada continues to lower interest rates, the Canadian Real Estate Association (CREA) reveals that potential buyers are waiting for more mortgage rate cuts. Discover what’s in store based on the most recent September 2024 housing market statistics.
Expect a Rebound in Canada’s Housing Market in 2025
CREA senior economist Shaun Cathcart explained the current housing market “holding pattern” trend this way:
Cathcart predicts that the current holding pattern may last until the end of 2024 and expects a sales rebound in 2025. This is when the full impact of interest rate cuts will take hold.
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CREA predicts that home sales nationally will reach 6.6 percent in 2025 (their prediction early in the summer was 6.2 percent).
In September, the Bank of Canada cut interest rates for the third time, lowering the overnight lending rate to 4.25 percent. Experts expect the bank will announce similar cuts in October and December. This could lower mortgage rates to as low as 3.5 percent by the end of 2024, making homeownership more affordable for newcomers.
For newcomers from India, China, or the Philippines arriving and looking to buy a house soon, the good news is the current “buyer-friendly market” may continue until the end of 2024 and beyond.
Despite the ongoing holding pattern, Canadian home sales nationally in September increased 1.9 percent month-over-month, reaching the highest sales level since July 2023. That slight increase follows a 1.3 percent increase in August, a 0.7 percent fall in July, and a 3.7 increase in June.
Housing Market in Canada Favours Buyers
Prices rose slightly in September. The national average home price was $669,630, up 2.1 percent from September 2023. CREA’s September report reveals that 76.9 percent of regions in Canada have home prices below the national average, and 38.5 percent of regions have prices under $500,000.
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Other Facts from CREA’s September Housing Market Report:
New listings were up 4.9 percent month-over-month.
The national average sale price was up 2.1 percent year-over-year in September.
Approximately 185,427 homes were listed for sale, up 16.8 percent from September 2023.
Western Canadian cities such as Edmonton and Winnipeg , the cost of homes are in the $400,000 range and offer greater affordablility.
Regina, Saskatchewan and Saint John, New Brunswick have budget-friendly homes for newcomers averaging under $330,000.
Newcomers are a significant segment of the Canadian home-buying market.
Recent data from Statistics Canada reveals that immigrant homeownership is rising across Canada. British Columbia, Ontario, and Alberta have the highest home ownership costs for newcomers, while New Brunswick and Newfoundland have the lowest.
A Royal Lepage report revealed that immigrants buy one in five homes in Canada. After arriving in Canada, they also buy homes faster than ever and focus far more on home buying than Canadian-born homebuyers.
Housing affordability varys in most Canadian real estate markets for renters and homebuyers. So, it’s wise for newcomers to research housing prices in different regions when deciding where to settle.
Affordable housing markets can help newcomers buy homes within their budget and set themselves up for financial success.
Highlights from the Housing Market Report and Home Prices Across Canada
Vancouver, British Columbia
The average home price in Greater Vancouver was $1,252,066 in September 2024, up 0.2 percent from August. Annually, average home prices are down 3.2 percent.
Calgary, Alberta
In September, the average home price in Calgary was $621,943. That’s 13.2 percent higher than the average sales price in September 2023, and 2.1 percent higher than August 2024. Increasingly, home buyers in Calgary are purchasing condos and townhouses and shifting away from detached houses.
Edmonton, Alberta
The average Edmonton home price in September 2024 was $440,366. That’s a 12 percent increase from September 2023 and a 1.2 percent hike from August 2024. Edmonton remains the most affordable among Canada’s five most significant population areas. The average price of a townhouse was $292,875 in September, up 9.6 percent year-over-year.
Saskatoon, Saskatchewan
The average house price in Saskatoon in September was $428,350, up 7 percent compared to September 2023. Across the province of Saskatchewan, the average home price was $343,800, up 6 percent year-over-year. There were 1,398 home sales in Saskatchewan in September, an eight percent year-over-year increase.
Winnipeg, Manitoba
In September 2024, Winnipeg’s average home sale price was $374,016, 0.9 percent higher than in August. That price is also up 0.1 percent from September 2023. The average sold price of an attached home in September was $360,739, up 5.9 percent year-over-year and down 0.4 percent from August.
Toronto, Ontario
Home prices in the Greater Toronto Area (GTA) housing market continued to fall in September 2024, with more homes listed for sale. The average GTA home price was $1,107,291 in September, up 3.1 percent from August. Year-over-year, the average GTA home price is down 1.1 percent.
Ottawa, Ontario
The average home price in Ottawa in September was $685,551, up 1.5 percent from September 2023 and 3.8 percent from August 2024. Home sales in September 2024 fell by 10.7 percent from last September. The average townhouse price was $551,259, down 2.6 percent from August.
Halifax, Nova Scotia
In September, the average home price in Halifax was $575,075, up 11 percent from September 2023 and 0.9 percent higher than August. Meanwhile, the average price of homes sold in Nova Scotia in September 2024 was $439,406, up 9.2 percent from September 2023. The number of new listings in Nova Scotia rose 8.2 percent from September 2023.
Brampton, Ontario
The average Brampton home price is now $1,035,184 down by 0.6 percent compared to last year. In September, the average price of a semi-detached was unchanged year-over-year at $932,000.
Surrey, B.C.
The list price of homes in Surrey, British Columbia was $1,078,668 in September 2024, compared to $1,189,612 in August 2024, down 7.82 percent month-over-month. The list price for condos was $556,080 in September.
Housing Market in Canada in 2025
So, how long will the Canadian housing market continue to favour newcomer buyers?
“So far, the recovery in sales has not generated too much pressure on house prices,” warns Scotiabank economist Patrick Perrier, “but we expect these supportive factors will eventually lead to a tightening of market conditions, thereby leading to an upward trend in house prices.”
Aa recent RE/MAX report shows that 16 percent of Canadians would be more confident buying a home once the Bank of Canada’s key interest rate drops by one more percent by the end of 2024.
So, is the Canadian housing market poised to take off as interest rates fall, and is now the best time for newcomers to buy?
“While some buyers may choose to take advantage (now),” said James Mabey, CREA Chair, “others may be inclined to wait as the bulk of future rate cuts from the Bank of Canada are now expected to show up in a matter of months as opposed to years.”
Action Steps for Newcomers Who Want to Buy a Home:
With more homes for sale, buyers may be anxious to sell as the end of the year approaches. This can help lower the cost of homes, which is good news for newcomers entering the housing market in Canada.
These action steps can help you navigate the housing market and find affordable housing options:
Monitor housing market performance and the cost of homes closely, particularly where you plan to settle.
Watch for upcoming Bank of Canada interest rate cuts and their effect on pricing, mortgage rates, and regional housing market conditions.
Know how housing prices differ nationwide when deciding where settle in Canada and when buying a home.
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
The good news for newcomers and international students is that the Bank of Canada’s interest rates are falling. Experts predict they will continue to fall throughout 2024. The cuts will lift some of the financial pressures affecting all Canadians – including newcomers – from increasing mortgage costs, borrowing costs, and the rising cost of many consumer items.
On July 24, the Bank of Canada cut its benchmark interest rate by 0.25 percent to 4.5 percent. The second 0.25 percent cut followed a similar one in June. Before June 5, the rate stood at 5 percent, down from a high of 8.1 percent in June 2022.
Interest rate cuts will boost the economy
The most recent Bank of Canada interest rate cut came as inflation in Canada fell from 2.9 percent to 2.7. The Bank’s target rate for inflation is 2 percent.
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Meanwhile, unemployment in Canada increased to 6.4 percent in June, up from 6.2 percent in May.
The interest rate cuts directly affect homeowners, businesses, consumers, and borrowers.
So, what can newcomers who have already arrived in Canada or arriving soon expect going forward?
Bank of Canada Governor Tiff Macklem said it is “reasonable to expect” more cuts in 2024. The Bank is “increasingly confident that the ingredients to bring inflation back to target are in place.”
Larger interest rate cuts are needed
“I take a lot of comfort from that. And I think Canadians need to just take a lot of comfort from that too.”
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As for the impact of the Bank of Canada interest rate cuts on housing, Perrault said that the rate cut (an indication of more to come) “should be a great comfort to people with mortgages and people in the housing market.”
You should expect those interest rates to come down as you think about your financial plan, as you think about holidays, as you think about renewing your mortgage or buying a car.
Jean-François Perrault, Scotiabank
“The challenge is that the housing market is going to be a little bit slower to respond” to the cuts.
However, some experts say that despite the recent cuts, interest rates are still too high for newcomers looking to buy a home.
“It’s not a surprise that the Bank of Canada lowered its rate, but I’m disappointed it wasn’t a 0.5 percentage-point drop,” said John Lusink, president of Right at Home Realty.
“That would have really stimulated the market. Will this recent rate cut have a dramatic effect on sales? No, I don’t think so. It’s still wait and see for a lot of people.”
“So we’re not expecting a dramatic turn on the housing market in the short run.”
Arrive in Canada Financially Prepared
Building a strong financial foundation is vital to your success. Join this webinar to start your banking journey in Canada on the right foot!
AnIpsos Research surveyshowed that newcomers buy homes quicker than ever and focus more on homebuying than those born in Canada.
Factor the impact of the cuts on your financial planning
Canada is on target to welcome 485,000 permanent residents in 2024 and will welcome 500,000 in 2025. Between 2021 and 2026, Canada will have welcomed 2.4 million additional permanent residents.
For Perrault, a key takeaway from the Bank of Canada interest rate cuts is that it is “very clear that interest rates are going to come down and that you should expect those interest rates to come down as you think about your financial plan, as you think about holidays, as you think about renewing your mortgage or buying a car.”
“I would encourage people to not be overly worried about the economy, not necessarily rebounding right away as rates come down because they’re expecting it to.”
“But it’s just a matter of time before things turn around,” said Perrault, “as those rate cuts kick in and people feel like they are in the right position to go out and try and buy a (home). We know it’s going to happen. It’s just a matter of when that’s going to happen.”
Follow the next Bank of Canada interest rate cut (Sept.4) and see how it affects prices in Canada.
Continue to follow theCanadian job market, rent prices, and inflation trends.
SOURCES: Bank of Canada, Globe and Mail, Scotiabank Perspectives, Toronto Star, Statistics Canada, Ipsos.
Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canadaandhe is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.
Read more about your financial first steps in Canada.
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Steve Tustin is the Editor for Rentals for Newcomers and a contributing editor for Prepare for Canada. He is also the former managing editor of Storeys.com and a former senior editor at the Globe and Mail and the Toronto Star.