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Canada  + Finance  | 
Canada's inflation rate continued to fall in April, increasing the chances of a summer interest-rate cut.

CRE Industry Welcomes BoC Interest Rate Hold

Commercial real estate industry insiders welcomed the Bank of Canada’s decision to hold its overnight interest rate at 5% on Wednesday.

“A stable policy rate means that real estate investors can now look forward to more predictable financing conditions,” said Marie-France Benoit, Avison Young’s director of market intelligence, in a statement.

The BoC said past interest-rate hikes are dampening economic activity and relieving price pressures. But weaker demand and higher borrowing costs are weighing on business investment.

Benoit believes that the 5% level marks the peak for interest rates. But, she warned, the market will be hit on several fronts, including weaker demand, tighter credit and high financing costs.

The rate pause provides “a sigh of relief” for multi-residential property landlords because their mortgage costs won’t rise further, Davelle Morrison, a broker with Toronto-based Bosley Real Estate, told BNN Bloomberg. As a result, she added, landlords won’t need to increase rents.

In early October, she said more Ontario landlords were looking to list their properties as short-term rentals to avoid difficulties with debt repayments.

(The deadline has been extended for nominations for Connect Canada CRE’s inaugural Canadian Women in Real Estate Awards. We welcome your input. Nominate a candidate today.)

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Inside The Story

Marie-France BenoitDavelle Morrison

About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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