The Bank of Canada Has Dropped Rates By 0.50%: Here’s What It Means for You!
Oct 23, 2024
Rates Are Dropping! What Does This Mean for Your Mortgage?
The Bank of Canada has just lowered interest rates by 0.5%, bringing the overnight lending rate down to 3.75%. If you have a variable-rate mortgage, this could translate into immediate savings on your monthly payments! For every $100,000 of mortgage debt, you’re looking at a $30 reduction in your payment. On a $500,000 mortgage, that’s $150 in monthly savings—and if you’ve been on a variable rate since June 2024, you could now be saving around $375 each month thanks to a series of rate cuts!
Should You Stick With Variable or Switch to Fixed?
This is the big question, and the answer depends on your personal situation. While variable rates offer immediate savings when the Bank of Canada cuts rates, fixed rates can provide long-term stability. With recent rate changes, fixed rates may also start to drop in the coming weeks, offering more competitive options. But is locking in the best move for you?
Every homeowner’s scenario is different—what works for one family may not work for another. If your mortgage is up for renewal soon or you’re thinking about making a switch, now is the time to evaluate your options. Timing is key, and we can help you stay ahead of the curve to make sure you’re getting the best possible deal.
How We Can Help
At Karista Mortgage, our experienced mortgage experts are here to guide you through these changes. We understand that financial decisions like this can feel overwhelming, but we’re here to simplify the process. Whether you’re considering a fixed-rate mortgage, staying with your variable rate, or you just want to know how much you can save, we’ve got you covered.
We monitor the market daily and keep our clients informed of every opportunity to save. When rates drop, we’re the first to help you take advantage, ensuring you get the best mortgage product for your needs.