Investors Advised To Be Ready For Their Investments, As A Drop In Interest Rates Is Expected
The Bank of Canada went ahead with six stages of interest rate hikes in the recent past. As of now, the interest rates continue to increase, but we can expect it to come down in the near future as well. If you are about to purchase a property, you should wait for that moment where the prices would come down. Then you can proceed with your investments and reap the benefits coming on your way.
Why would interest rates come down?
The rising interest rates would slow down Canadian economy. When the economy is strengthened, the interest rates will drop. As of now, the economy is slowing down, and the interest rates continue to increase. But when the interest rates start declining, the impact could be too much. We have seen such a scenario taking place back in the years 1994 and 1999.
Time to be ready
History would repeat and the interest rates would come down anytime soon. As per the current predictions, the interest rates would reach their peak in around six months’ time and will start coming down. We can expect that to happen before September 2023. Hence, people who are about to invest their money on purchasing property should be ready, so that they can take full advantage out of reduced interest rates.
People who borrowed money with variable interest rates will have to go through a difficult time in the upcoming months. However, it will not be a one-way road. In mid-term, we can expect them to receive some relief. Likewise, property buyers should just wait patiently in the upcoming months, until they come across a sweet spot to go ahead and buy property with impressive interest rates