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Will mortgage rates go down in 2024 Canada?

January 1, 2024

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Will mortgage rates go down in 2024 Canada?-Bungalow Finder

The anticipation surrounding a potential mortgage rate downturn in 2024 has reached a fever pitch among Canadian homeowners and prospective buyers. As the specter of mortgage renewals looms on the horizon, the question remains: When will relief arrive? Thankfully, Bungalow Finder caters to this question by offering deeper insights through this article  so you can be prepared.

Current Situation of Mortgage Rates in Canada

While the current situation involves elevated interest rates, indications and forecasts are pointing towards a potential shift in the coming year. Analysts and experts are speculating about the likelihood of the Bank of Canada initiating a series of rate cuts starting in the second quarter of 2024. This anticipation is fueled by factors such as inflation moving towards the 2% target, signs of moderation in the labor market, and a backdrop of sub-par economic growth.

The delicate balance between addressing inflation concerns and supporting economic growth adds an element of uncertainty to the current mortgage rate landscape. As Canadians navigate the present situation, staying informed about economic indicators, policy decisions, and market forecasts becomes essential for making informed decisions regarding mortgages, home purchases, and financial planning.

For homeowners with mortgages up for renewal, understanding the current economic context and keeping a watchful eye on evolving market dynamics will be crucial. Additionally, prospective homebuyers can use this period to carefully assess the potential impact of changing interest rates on their affordability and mortgage qualification.

Economic Indicators Pointing Towards Change

Economic indicators hint at a potential shift in the interest rate Canada landscape in 2024. Factors such as inflation inching towards the Bank's coveted 2% target, subtle signals of moderation in the labor market, and a backdrop of sub-par economic growth are fueling speculations of a change in direction.

Delving into the forecast, a nuanced approach becomes evident. The central bank is navigating a delicate balance, aiming for a "soft landing scenario"—a gradual economic slowdown that aligns core inflation convincingly with the 2% target without triggering a sudden or steep recession.

When Will Mortgage Rates Go Down?

While the prospect of rate cuts holds promise, caution is injected into the narrative. Potential new homebuyers and existing homeowners should temper expectations as the synergy between declining interest rates and ascending home prices may yield only marginal gains in affordability. Realism acknowledges that, even with the projected rate cuts, affordability may not witness a substantial improvement.

Yet, amidst this caution, there is a glimmer of hope. Governments at various levels are actively engaged in crafting policies aimed at addressing housing affordability concerns. Particularly in the high-stakes provinces of Ontario and British Columbia, where affordability challenges have been most pronounced, policymakers are endeavoring to usher in measures that could tip the scales toward a more balanced housing market.

Mortgage Rate Forecast for Canada in 2024

Looking through the lens of anticipation, the mortgage rate forecast for Canada maintains a steady course, anchored at 5.00% through the end of 2023. This steadiness provides a temporary respite, a calm before the potential storm of change. The advanced predictions, however, cast a speculative gaze toward mid-2024, suggesting that interest rates may embark on a downward trajectory.

The figures and forecasts tantalize the imagination—a potential shift that could reshape the financial landscape for homeowners, buyers, and the real estate market at large. As Canadians watch the economic horizon, the question lingers: Will the predicted rate cuts materialize, and if so, how profound will their impact be?

Long-Term Mortgage Rates Forecast

The enduring impact of past rate increases necessitates a nuanced perspective on the future. Experts, reading the tea leaves of economic indicators, now project a gradual trajectory. An anticipated 25 basis points per quarter rate cuts are poised to make their debut in Q2 of 2024. The real estate market, an ever-responsive barometer of economic shifts, has showcased resilience, with home sales continuing to register gains despite the backdrop of increasing interest rates.

Bank of Canada Interest Rate Hike Predictions for 2024

The persistent specter of inflation remains a linchpin in the Bank of Canada's rate decisions. As inflation persists, the central bank has responded with a series of rate hikes, underscoring the importance of taming this economic force. As the transition into 2024 beckons, speculation abounds on how the Bank of Canada will navigate this persistent challenge.

Figures and schedules chart the path—each rate announcement is scrutinized for its potential impact on the economic landscape. The intricate dance between inflation and interest rates plays out on a stage set by economic indicators and policy decisions—a drama with far-reaching consequences for Canadians across the financial spectrum.


In conclusion, the landscape of mortgage rates in 2024 presents a narrative rich in anticipation, potential, and complexity. As forecasts paint scenarios and figures come to life, Canadians stand at the crossroads of change. As interest rates potentially chart a new course, staying informed, understanding regional dynamics, and crafting nuanced strategies become essential tools for homeowners, buyers, and market participants.

The journey ahead is dynamic, shaped by economic forces, policy decisions, and the unpredictable nature of external factors. Canadians, equipped with insights from forecasts and a keen awareness of the evolving landscape, are poised to navigate this journey with resilience and foresight.

Frequently Asked Questions (FAQ) 

Q1: Are interest rates expected to go down in 2024 in Canada?

Yes, forecasts suggest a potential decrease in interest rates in 2024.

Q2: Will interest rates improve in 2024?

There's an expectation of improvement, particularly with anticipated rate cuts during 2024.

Q3: What is the mortgage rate forecast for Canada in 2026?

Specific forecasts for 2026 are currently unavailable. Stay tuned for updated predictions closer to that year.

Q4: How many Canadian mortgages are up for renewal in 2024?

The exact number is not specified. For personalized information, homeowners should contact their lenders.

Q5: Will interest rates improve in 2024?

Yes, improvement is anticipated in 2024, aligning with the potential series of rate cuts.