There’s some important news for anyone with a mortgage or considering getting one! The Bank of Canada has just reduced its key lending rate by 0.25%, moving the overnight rate down to 4.25%. This is part of an ongoing effort to manage economic growth and inflation, marking the third consecutive rate reduction.
Quick Overview:
- Latest Bank of Canada Interest Rate: 4.25%
- Prime Rate Following Today’s Announcement: 6.45% for Most Lenders
- Next Bank of Canada Announcement: October 23, 2024
This change primarily impacts those with variable or adjustable-rate mortgages and lines of credit, providing an opportunity for lower monthly payments. For those with fixed-rate mortgages, this particular rate cut doesn’t alter your current terms, but it’s a crucial reminder of the market’s dynamic nature
For Those Pre-Approved and House Hunting:
- Fixed-Rate Pre-Approvals: Today’s announcement doesn’t change the maximum mortgage amount you can obtain, but it’s essential to stay informed as we watch the rates. We’re here to update your pre-approval whenever better opportunities arise.
- Variable-Rate Pre-Approvals: It’s a good idea to check with us on the maximum amount you now qualify for under the new rates before making any offers.
Thinking of Buying? If you haven’t secured a pre-approval yet, now is the time to act. The landscape for fixed rates remains fluid, and securing a pre-approval now will lock in the best current rate and position you to take advantage of any future decreases.
Renewing Soon? With rates trending downward, don’t rush to accept the first renewal offer from your lender, as it might not be the best available. Let’s review your financial goals and current situation to ensure you secure the best terms during this renewal window.
Need Personalized Advice? Every financial situation is unique, and these changes can have different implications depending on your personal or family circumstances. I’m here to help you understand what this rate cut means for you and to strategize the best path forward.
Let’s connect to discuss how you can benefit from the current financial trends. Your optimal mortgage strategy is just a conversation away. Call to discuss, or book an appointment with me at www.chatwithlisareynolds.ca
