Over the weekend, the Royal Bank of Canada dropped its five-year fixed rate mortgage to just 2.84 per cent. No other banks have jumped on the rate dropping trend. Will it have an impact on how the housing market performs in 2015? Time will tell.

I don’t believe a quarter-point will make a significant difference, First-timer buyers are already expecting low rates and other government incentives . This adjustment is just giving people a little more confidence in being able to take on a mortgage.

The market in 2015 should pick up where last year left off, with low inventory being the driving force behind the hot market both in Vancouver and the Fraser Valley.

The market in the Lower Mainland is going to be active whether interest rates are high or low, growing families still need to up-size and seniors still need to downsize.

If people want to move up and can afford a detached house now, I highly recommend it. Money will be much cheaper now than down the line, But, people need to be proactive in paying down their mortgage, because while it’s cheap now, you have to be aware that higher rates are coming. Don’t sit on a huge mortgage or line of credit thinking rates are going to stay low forever.