This year, the team decided we wanted to help a local family make their Christmas a little more special.
And let me tell you… Team UCC stepped up its game this Christmas season.
The generosity of our staff and mortgage agents blew me away.
Everyone was so eager to contribute!
Some of the team got together this past Friday afternoon to wrap all of the gifts.
I was equally impressed by some of their wrapping skills…
And not so impressed with others (you know who you are…lol 😊).
It was a fun afternoon… we ordered lunch, played some Christmas music and shared some good laughs.
It was a great way to kick off the Christmas season at the UCC office.
Okay, on to other exciting news.
I should really consider sending this weekly email out on Wednesday instead of Thursday, to align with the Bank of Canada meetings.
By the time my email comes out, the interest rate announcements are old news, lol.
Alright, now let’s talk about the bombshell the Bank of Canada dropped on Wednesday. They slashed interest rates by a whopping 50 basis points!
This is huge, folks. The Bank of Canada doesn’t make moves like this lightly.
It’s a clear sign that we’re in the midst of a recession and the economic data they’re looking at is likely flashing red.
So, what does this mean for you and your mortgage? Well, if you’ve got a variable rate mortgage, you’re probably doing a little happy dance right now.
That’s because variable rates are directly tied to the Bank of Canada’s overnight rate. When the central bank cuts rates, variable rates usually follow suit.
On the flip side, if you’re locked into a fixed rate mortgage, you might be feeling a bit left out. Fixed rates are more closely tied to bond yields, which can move independently of the Bank of Canada’s rate.
That said, if this rate cut is a sign of things to come, we could see fixed rates start to drift lower in the coming weeks and months.
Now, while lower mortgage rates might seem like a reason to celebrate, there’s a catch. If Canada keeps cutting rates faster than the U.S., our dollar could take a serious hit.
A weaker loonie means your hard-earned money might not stretch as far when you’re shopping for imported goods or planning that dream vacation abroad. But that’s not all. It could also lead to higher housing costs.
You see, many of the materials and components that go into building a house, like lumber and steel, are priced in U.S. dollars. So, when our dollar weakens, these “inputs” become more expensive.
And guess who ends up footing the bill? That’s right, homebuyers and builders. It’s like adding insult to injury.
Not only do you have to deal with a recession, but now your dream home might cost more too!
But hey, it’s not all bad news. A weaker dollar can give our exporters and tourism industry a nice boost.
So, if you’re in one of those sectors, you might be feeling pretty good right now.
As always, these economic curveballs present both challenges and opportunities. But don’t worry, our team has got your back.
We’re here to help you navigate these crazy times and come out on top. If you’ve got any questions or just want to chat about your mortgage options, give us a shout.
We’re always just a phone call or email away. Have an awesome weekend!
Vince Castagna
P.S. If you’re thinking of locking in a rate, now might be the time. sure, us a call and we’ll make sure you don’t get locked out of these great rates! 😉
P.P.S. We have a cool contest coming up for First Time Homebuyers. If you or somebody you know is FTHB, you’re not going to want to miss out on this opportunity. We’re just ironing out the details and will be providing more info over the coming weeks. Stay tuned!
