Date: December 11, 2024
Category: Blogs,Mortgage Tips & Advice,Newsletter
🚨BREAKING NEWS 🚨
Bank of Canada Lowers Rates Again – What You Need to Know
The Bank of Canada (BoC) has cut the policy rate by 50 basis points (0.50%), bringing it down to 3.25%. This is the fifth consecutive rate cut since June 2024.
Why Did the BoC Cut Rates?
- Inflation control: Inflation has returned to the 2% target.
- Economic slowdown: Canada’s economy grew only 1% in Q3, slower than expected.
- Job market softening: Unemployment rose to 6.8% in November, impacting young people and newcomers.
How Does This Affect You?
- Variable-Rate Mortgages:
- Monthly Payment Savings: Approximately $28/month per $100,000 of debt.
- Example: For a $400,000 mortgage, you save about $112/month.
- Adjustable-Rate Mortgages: Payments will decrease immediately.
- Fixed-Payment Variable Mortgages: More of your payment goes toward principal, helping you pay off your mortgage faster.
- Monthly Payment Savings: Approximately $28/month per $100,000 of debt.
- HELOCs & Lines of Credit:
- Interest costs will drop, giving you more monthly savings.
- Fixed-Rate Mortgages:
- No immediate change; your rate stays locked until renewal. I highlight this since most people still think the BOC announcement will directly impact the fixed rates and the short answer is NO.
What’s Next?
- The BoC’s next rate decision: January 29, 2025.
Your Action Plan:
- Review Your Mortgage Strategy: This may be a great time to discuss refinancing or optimizing your mortgage plan.
- Want to Explore Your Options?
📞 Let’s connect to see how these changes could benefit you!
Talk soon,
Ana
Mortgages can be complicated; we are here to help you make “cents” of it.
We focus on Mortgage Solutions, Period!
To learn more connect with Ana Cruz 905.870.0513 or email at ana@askanacruz.ca
