What the Bank of Canada Rate Drops Mean for YOU!
The Bank of Canada has been cutting rates throughout the summer and into September, and I wanted to update you on what this means for your mortgage.
Adjustable-Rate Mortgage Holders
If you’re on an adjustable-rate mortgage, good news! Your payments will decrease, freeing up more cash flow each month. For example, with a $750,000 mortgage, your payments at the old 6.20% rate were around $4,924/month. With the new 5.95% rate, you’ll pay approximately $4,809/month—that’s a $115 monthly savings!
Static-Payment Variable-Rate Mortgages
If you have a static-payment variable-rate mortgage, your monthly payment stays the same, but the lower rate means more of your payment will go towards your principal, reducing your mortgage faster.
Adjustable-Rate Mortgage Holders
If you’re on an adjustable-rate mortgage, good news! Your payments will decrease, freeing up more cash flow each month. For example, with a $750,000 mortgage, your payments at the old 6.20% rate were around $4,924/month. With the new 5.95% rate, you’ll pay approximately $4,809/month—that’s a $115 monthly savings!
Static-Payment Variable-Rate Mortgages
If you have a static-payment variable-rate mortgage, your monthly payment stays the same, but the lower rate means more of your payment will go towards your principal, reducing your mortgage faster.
Fixed-Rate Mortgages
Fixed-rate mortgages don’t change with Bank of Canada rate cuts. However, this could work in your favor when it’s time to renew or refinance, as lower rates can increase your borrowing power.
Great News for First-Time Buyers!
Lower rates not only mean more qualification options and lower payments, but recent changes in mortgage rules have removed many barriers for first-time homebuyers. Now is a fantastic time to explore your options!
With two more Bank of Canada decisions coming in October and December, experts expect more rate cuts, potentially lowering the overnight rate below 4.0% by year-end and 2.75% by next year.
Remember, the interest rate is just one part of your mortgage. Factors like down payment, payment schedule, and prepayment penalties all affect affordability.
If you have any questions or want a personalized mortgage review, don’t hesitate to reach out! I’m here to help.
Fixed-rate mortgages don’t change with Bank of Canada rate cuts. However, this could work in your favor when it’s time to renew or refinance, as lower rates can increase your borrowing power.
Great News for First-Time Buyers!
Lower rates not only mean more qualification options and lower payments, but recent changes in mortgage rules have removed many barriers for first-time homebuyers. Now is a fantastic time to explore your options!
With two more Bank of Canada decisions coming in October and December, experts expect more rate cuts, potentially lowering the overnight rate below 4.0% by year-end and 2.75% by next year.
Remember, the interest rate is just one part of your mortgage. Factors like down payment, payment schedule, and prepayment penalties all affect affordability.
If you have any questions or want a personalized mortgage review, don’t hesitate to reach out! I’m here to help.
Alexander Gasenko - your trusted Toronto & GTA mortgage broker. Dominion Lending Centres Maple Mortgage Group Independently Owned & Operated — FSRA# 13415
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