Return of Buyers: The Impact of Lower Interest Rates

The recent drop in interest rates has sparked renewed interest among potential buyers. According to mortgage brokers, this decrease has reactivated many purchasing projects, creating excitement in the real estate market. June 5, in particular, was a day marked by an avalanche of requests for mortgage pre-authorizations. Let’s take a closer look at the effects of this rate cut and what it means for buyers and sellers.


Reactivation of purchase projects: The drop in rates has encouraged many buyers to relaunch their real estate purchase plans. Mortgage brokers have observed a significant increase in requests for mortgage pre-approvals.

Impact on variable and fixed rates: The reduction in the key rate has an immediate effect on variable rates. However, the impact on fixed rates may take longer to be felt, requiring some patience from buyers.

Sellers’ Waiting: Many sellers were waiting for the announcement of the rate cut before putting their property up for sale. This expectation has created increased supply in the market, providing more options for buyers.

Increase in the amount for the RAP: The combination of the reduction in rates and the increase in the amount for the Property Acquisition Plan (RAP) has generated increased interest among buyers, particularly first-time buyers.

Moderate but positive impact: Although a quarter-point reduction does not represent a huge difference in budgets, it is a step in the right direction. This decrease is seen as a positive signal for the real estate market.


In short, the reduction in the key rate had a stimulating effect on the real estate market. It not only reactivated the purchasing plans of first-time buyers, but also encouraged those with greater purchasing capacity to get started. With increased supply and more favorable financing conditions, the real estate market appears poised for a period of renewed dynamism. Buyers and sellers should remain attentive to rate developments to make the most of this favorable situation.

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