top of page

Bank of Canada opens the door for variable-rate mortgages

The Bank of Canada has taken a significant step by lowering its overnight rate from 5% to 4.75%, the first cut since March 2020. This move is intended to make borrowing cheaper, affecting various types of loans including variable-rate mortgages. With this reduction, homeowners with variable-rate mortgages will see their interest rates decrease by 0.25%, providing some financial relief after a period of rising rates.

This change comes in response to a noticeable decline in inflation and a cooling economy. The Bank of Canada aims to support economic growth and make debt more manageable for Canadians. Variable-rate mortgage holders, who saw their payments increase sharply during the previous rate hikes, are expected to benefit the most from this adjustment.

However, the impact on the housing market and broader economy will take some time to fully materialize. While the immediate effect is a reduction in mortgage payments, the overall affordability and accessibility of housing might not see drastic changes until more data is available in the coming months.

Experts suggest that while this rate cut is a positive step, it might not be a game-changer for everyone. Homeowners and prospective buyers should still carefully consider their options, weighing the benefits of variable rates against the stability of fixed rates. 

In summary, the Bank of Canada's recent rate cut offers a glimmer of relief for variable-rate mortgage holders and signals a cautious approach to stimulating economic growth while managing inflation.



  • Instagram
  • Facebook
  • Twitter
  • LinkedIn
  • YouTube
  • TikTok
Email Support Photos_Square.png
bottom of page