Today it was released that the Bank of Canada has cut its overnight lending rate to 0.5%. This is in wake of some weaker than expected economic results (that don’t seem to be affecting the KW housing market too much right now!).
To help clarify any questions, consider the following points:
-This cut only affects Variable rate mortgages. Not fixed rate mortgages.
-Although the Central Bank has cut rates by 0.25%, the Canadian mortgage lenders seem only to be cutting their variable/ Bank Prime Rate by 0.10%… Real nice guys eh?… The current Bank Prime rate is 2.75%.
-Although the Bank of Canada rate has fallen, the ‘prime minus’ discounts that lenders apply to variable rates (ex. Prime – 0.75 %) are holding steady. We are able to provide clients with variable rates at 2.00% in a 3-5 year variable mortgage.
Want a lower, money saving variable rate? Do you have more questions about this, or anything related? The Mortgage Freedom Fighters KW are always happy to chat
Richard Kitts, AMP
Mortgage Broker/President Licence #M08002010