Bank of Canada's rate cut fuels variable-rate mortgage interest and prime rate reductions.
The Bank of Canada's recent cut to its key interest rate has revitalized interest in variable-rate mortgages, prompting commercial banks to lower their prime rates. This shift benefits borrowers who faced rising costs during the previous rate-hiking cycle. With three rate cuts this year and potential further reductions, variable-rate mortgages are becoming more appealing, despite currently being more expensive than five-year fixed-rate options. They also carry lower penalties for early termination.
September 05, 2024
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