Interest rate cut spells good news for variable-rate mortgage holders, experts say
Real estate experts say the Bank of Canada’s third consecutive interest rate cut is welcome news for variable-rate mortgage holders, but it could still be some time before significant demand returns to the market.
The central bank brought its key lending rate to 4.25 per cent on Wednesday amid softness in the economy and easing inflation.
Ratesdotca mortgage and real estate specialist Victor Tran says that for every quarter percentage point decrease, a homeowner with a variable-rate mortgage can expect to pay approximately $15 less per $100,000 of mortgage in monthly payments.
Meanwhile, fixed-rate mortgage holders will not see the effects of any mortgage rate decreases until renewal.