The Bank of Canada's decision to cut interest rates Tuesday is unlikely to trigger a flurry of home buying in Vancouver, although more potential buyers will be looking, the B.C. Real Estate Association says.

Cameron Muir, chief economist of the B.C. Real Estate Association, predicts the Bank of Canada will keep cutting interest rates in the months ahead.
(CBC)

The association's chief economist, Cameron Muir, said he predicts the bank will keep cutting interest rates in the months ahead to further stimulate the economy.

"We will see that five-year posted rate start to edge down as worries around the financial markets here in Canada start, too," Muir said Tuesday.

"Anyone that is either purchasing a home now and taking out a mortgage or renewing their mortgage coming up in the next few months, it's probably good news for them to see a downward pressure on interest rates here in Canada," he said.

Alicia Pinksen and Chris Urgl said they had been looking for a place to rent in Vancouver, but the interest rate cut has changed their plans.

Chris Urgl and Alicia Pinksen say lowered bank rates are encouraging them to look at buying a home in Vancouver rather than rent.
(CBC)

"We are looking to get into the market within the next year or so," Pinksen told CBC News. "It [the interest cut] sort of encourages us to get in a little bit faster."

Michelle Byman, a Vancouver mortgage broker, said rates as low as 4.65 per cent are available, and the savings can add up.

"The difference in the drop of half a point over let's say in a $100,000 mortgage, is about approximately $40 a month in interest saved — over the long term, several thousand dollars," she said.