Bringing it down to 3.75%. This marks the fourth consecutive cut this year, with a total reduction of 1.25% from its peak—potentially bringing some relief to those with variable-rate mortgages or loans tied to the bank’s prime rate.

For the full details, you can read the Bank of Canada’s official statement here

Lenders usually adjust their prime rates within a few days of a Bank of Canada rate change. By now, we’re seeing prime rates around 5.95% at most institutions, with TD Bank’s prime rate closer to 6.10%.

• Variable-Rate Mortgage Holders: This is positive news! For variable-rate mortgages, this rate drop means lower interest costs—about $29.96 per $100,000 on a 25-year amortization. If your payments are fixed, a larger portion of each payment now goes toward the principal. If your payments adjust with the prime rate, you should see a slight decrease in your monthly payment.
• Fixed-Rate Mortgage Holders: No changes here—your payments will stay the same.
• Other Loans Linked to Prime Rates: Personal loans or lines of credit connected to the prime rate will see reduced interest charges as well.

The next Bank of Canada rate decision is scheduled for December 11, 2024, and many are already anticipating another rate cut. While it’s not guaranteed, more rate reductions could mean additional relief for borrowers in the months ahead.

If you have questions or want to discuss how this rate change could impact your mortgage, reach out to us at First Avenue Financial. We’re here to help!