Interest rate changes to benefit local home buyers

Sarnia Lambton Real Estate Board office of Exmouth Street. (BlackburnNews photo)

A change in plans by the Bank of Canada could really benefit individuals looking to purchase homes locally.

Sarnia-Lambton Real Estate Board President Donna Mathewson said Canada’s central bank has backed off on plans to hike interest rates by one per cent by the end of this year.

“They’ve totally reversed that,” said Mathewson. “I think a lot of measures that they put in place to control housing, maybe haven’t done exactly what they wanted them to. They’re more concerned now about the economy and rising interest rates.”

Mathewson said interest rates dropped a few times in June and economists are predicting further decreases.

“Right now buyers are able, once again, to get five-year mortgages for less than three per cent at many financial institutions,” she said.

The board recorded 190 sales last month, down 8.65 per cent compared to June 2018.

Dollar volume of just over $300 million for the first six months of 2019, is up nearly six per cent compared to the same time frame last year.