Bank of Canada Rate Cuts:
The Bank of Canada has been steadily cutting its policy interest rate since June 2024.
Most recently, on December 11th, 2024, they lowered it by 50 basis points to 3.25%. This was the fifth consecutive rate cut.
Impact on Fixed Mortgage Rates:
While the Bank of Canada's rate influences variable-rate mortgages directly, fixed-rate mortgages are more closely tied to bond yields.
Bond yields have been declining, but fixed mortgage rates haven't dropped as dramatically as some might expect.
As of December 11th, 2024, the lowest advertised 5-year fixed rates are around 4.15%.
Impact on Variable Mortgage Rates:
Variable-rate mortgages are directly influenced by the Bank of Canada's rate cuts.
These rates have been falling and are expected to continue to do so in the near future.
Overall:
The trend is towards lower mortgage rates in Canada, which is good news for borrowers.
However, the exact impact on your mortgage payments will depend on the type of mortgage you have (fixed or variable) and your individual lender.
For the most up-to-date information:
Consult with a mortgage broker or financial advisor.
Keep an eye on financial news sources like those I linked in the previous response.
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