Dear Clients,

We hope this message finds you well.

Yesterday, the Bank of Canada cut rates another 0.25%, and this will likely continue on March 12, 2025 when their next interest rate decision is due. Which will likely be another 0.25% cut. While these changes may feel gradual, they offer a great opportunity for those looking to optimize their finances. Below, we’ve outlined what this means for you and how you can take advantage of it.

What Lower Interest Rates Mean for You

1. Refinancing Opportunities:
Lower interest rates can lead to lower monthly payments on mortgages, car loans, and other debt. If you  haven’t already, this might be the perfect time to explore refinancing your existing loans to take advantage of these lower rates.

2. Borrowing Becomes More Affordable:
If you are considering a large purchase or investment, such as buying a home or starting a business, now might be a good time to take action while rates are trending lower.

3. Investment Strategy Adjustments:
Lower interest rates can affect bond yields and the performance of certain asset classes. For investors, this might be a good opportunity to review your portfolio and ensure it is aligned with your long-term goals. It could also be a chance to rebalance based on your risk tolerance.

What You Should Consider Doing Now

 Evaluate Your Savings Strategy: Lower interest rates can mean lower returns on
savings accounts and GICs. This may be a good time to explore other investment
options with better potential for growth, especially if you’re planning for long-term goals. That are more tax efficient.

 Stay Informed: We’ll continue to monitor interest rate changes and how they could affect your financial plan. It’s important to stay proactive and adjust your strategy when necessary.

Let’s Talk About Your Plan

With the market and interest rates constantly evolving, it’s important to ensure your financial strategy stays on track. We’re here to help you navigate these changes and take advantage of opportunities to strengthen your financial future.

Please don’t hesitate to reach out if you have any questions, or if you’d like to schedule a review of your current financial plan.

We look forward to continuing to support you on your journey toward financial success.

• Matthew