A surge in oil prices to start the year appeared to be keeping inflation higher than anticipated. However, with oil prices peaking last month and recently cooling to February levels, we believe the upcoming CPI report next month will show headline inflation at 2.5% or lower. This should lead Canadians to ask Bank of Canada Governor Tiff Macklem, "Where are the rate cuts?".

The next inflation report is due on June 25th, and we’ll make sure to get you our exclusive commentary both here, and on our social media accounts.

Next Wednesday, June 5th, the Bank of Canada will have its much-anticipated final interest rate meeting for the first half of the year.

We all remember two years ago when the Bank of Canada began increasing interest rates at a pace like no other.  But what you may not remember, is that it’s been over four long years since the same Bank of Canada leadership last REDUCED interest rates, back in March 2020. In a four-year span, we saw record-low interest rates pivot to record-high interest rates, creating a financial roller coaster ride that Canadians would happily forget.

Within the next 100 days, it appears to be a certainty that we will get our first interest rate drop in almost half a decade - and some of the top Economists in the Country think it may be coming next week.

Just last Thursday, our very own Dave Butler and Lorenzo Podda sat down with B2B Bank's Chief Economist, Sebastien Lavoie (pictured below left). He expressed optimism about the Bank of Canada beginning interest rate cuts in June. He stated, “I expect the Bank of Canada to drop rates in June by 0.25%... It's possible they don't do the first drop until July… the feeling we are getting is the Bank of Canada wants to move a little quicker given the recent inflationary data."

When pressed for more information, Mr. Lavoie remarked that Canadians should expect slow and small decreases in interest rates. "I would expect two, maybe three decreases of 0.25% by the end of this year… we’ll see slow and steady cuts in 2025 as well. The Bank of Canada will be very careful not to bring rates down too much and too quickly. A spike in inflation still remains a fear of theirs in the short-to-medium term, so they will be careful."

Benjamin Tal (pictured above right), CIBC's Deputy Chief Economist, was quoted late last week saying that the most recent inflation print has likely pushed the Bank of Canada's hand: "Things are moving in the right direction. We got the inflation numbers today and they were better than expected. There is more than a 60% probability now that June will be the first move (down)...there is no reason not to cut."

It's always encouraging to hear economists speak positively about inflation being in check and potential interest rate cuts. However, we must remember that Bank of Canada head Tiff Macklem, infamously told Canadians in late 2020 that "interest rates will remain low for a very, very long time," only to begin raising interest rates faster than any previous Bank of Canada Governor, within a year and a half later.

Our Better Mortgage Select prediction remains from the end of 2023:

For all our real estate investor clients (most of you), or for those of you that are thinking about getting into the real estate investing game, you do not want to miss our upcoming webinar THIS WEDNESDAY, May 29th at 6:30pm. 

Click HERE to register for this Wednesday's webinar.

Daniel, Michael, Lorenzo, and our team will go over the myriad of changes in the post-pandemic mortgage landscape.  They’re going to show you what’s working for investors now, what’s not working anymore, and what the banks and lenders are looking for these days to support mortgage approvals for everyday real estate investors.

Want to find out which mortgage lenders are now allowing portions of RRSP and TFSA balances to be used as income on an application?  Our President, Dave Butler, is going to jump on the webinar and discuss with you.  You don’t want to miss this one!

In addition to this week's webinar, don’t forget to check out our other webinars scheduled for 2024 and pre-register now:

This month, Senior Mortgage Agent, Michael Zanzini, and our Operations Manager, Lorenzo Podda, were special guest hosts on Rock Star Real Estate’s Investor Education Zoom workshop.  The turnout was fantastic and it’s always great to see some old and new faces at these events.

Speaking of Rockstar Real Estate, our Vice-President Daniel Patton had the pleasure of spending some time with the Maggs McCarrol Group recently for some after-hours activities. They discussed the latest trends in mortgages for real estate investors and where the market is headed once interest rates start to come down.

The gang was getting its road work in this past month, as Michael Zanzini was a key speaker along with Gary Hibbert and Kathryn Almeida at Smart Home Choice’s ‘Durham Affordability Workshop’.  The event was aimed at teaching first-time buyers how to navigate the current landscape and showing them the many nuances of ‘House Hacking’.

Just a friendly reminder to come visit us on our socials, where we put out a ton of videos with tips and information to help you navigate the wild world of mortgages! Check out the links below and give us a follow!

As always, if you have any questions or want to do some mortgage planning, feel free to reach out to us at: