Why We Put Too Much Focus on Interest Rates

Unpopular opinion: we put way too much focus on interest rates 😵‍💫

That’s not to say rates don’t matter — they do. But when it comes to real-world affordability, price movement in the market often has a much bigger impact than people realize.

Let’s Put Some Simple Numbers Around It

To bring this to life, let’s look at a $400,000 mortgage.

If the Bank of Canada announces a 0.25% rate cut, that works out to roughly $1,000 per year in payment savings. That’s real money, and of course saving money is a good thing.

Now here’s the part that tends to get overlooked.

Last year, interest rates came down by 0.75%. During that same period, Saskatoon’s benchmark price started 2025 at $392,500 and finished the year at $417,700. That’s a difference of $25,200.

This doesn’t mean rates don’t matter — they absolutely do. But it does show how easily price movement can outweigh the savings from even multiple rate cuts.

The Reality of Uncertainty

As ever, there’s a lot of uncertainty around interest rates. The general consensus right now seems to be that rates will hold, but there are also voices — including Scotiabank — that expect rates to rise 🤯

On the flip side, when you look at the actual market data in Saskatoon, there’s currently nothing suggesting we’re heading into a slowdown. That combination is important to understand, especially if you’re trying to time a decision based solely on rates.

If You’re Thinking About a Move

If you’re considering a move this year or next, there are three simple (and free) steps I recommend:

1. Get an up-to-date home evaluation.
This helps you understand your current equity and what your realistic budget looks like today.

2. Have a conversation with a great mortgage advisor.
This gives you a clear picture of your actual purchasing power, not just what you think you might qualify for.

3. Book an “Education Day.”
It’s nothing like school (haha). We’ll head out to see a few properties in person, and I’ll point out the pros and cons of different homes so you can understand market value in a way photos on Realtor.ca simply can’t provide.

Contact us today info@bamfordco.com