Bank of Canada has cut its policy interest rate

Exciting news for Canadians, as the Bank of Canada cuts rates again!  The Bank of Canada reduced it policy rate in June — making Canada the first G7 country to do so — and the Bank was at it again yesterday.  Its decision to further reduce the rate by 0.25% is welcome news that is expected to support an increase in housing market activity.

The overnight rate has been decreased by 0.25% to 4.5% (Prime lending rate is now 6.7%).

What does this mean for you?

If you’re on a variable-rate mortgage, this will result in a slight decrease to your mortgage payments to match the current rates giving you more cash flow each month!

For first-time buyers, this means you have a little more borrowing power in the marketplace now, which could help you find that perfect home!

Lastly, if you’re one of the 80% of mortgage holders looking to renew in 2024 or 2025, this reduction in interest rate could make it easier!

The next rate announcement is scheduled for September 4, and if economic indicators are correct, we will see another cut on the way!

If you have any questions about your mortgage, or how this change affects you directly, please don’t hesitate to reach out!