31 Jan Bank of Canada Cuts Rates Again—Here’s How It Affects You
Posted at 01:43h
in Articles
Yesterday, the Bank of Canada reduced its policy interest rate by 25 basis points, bringing it down to 3.00%. This marks the sixth consecutive rate cut and is expected to lower the prime rate, which directly affects variable-rate mortgages, personal loans, and lines of credit.
Anticipated Changes in Prime Rates:
Variable-Rate Mortgages: Borrowers with variable-rate mortgages may soon experience a reduction in interest expenses. For those with fixed payments, a larger portion will now be allocated toward the principal balance. If your payments fluctuate with the prime rate, you can expect a decrease of approximately $14 per $100,000 of mortgage debt (based on a 25-year amortization).