Posted On Jul 25, 2024

Yesterday, the Bank of Canada (BoC) lowered its benchmark rate by 0.25% to 4.50%, offering rate relief to consumers and businesses.  
Important: This only affects variable rates. Fixed rates won't drop by 0.25%.
 
What Does This Mean for You? 
  • Most banks/lenders will now have their Prime Rate at 6.70%
  • Variable rate mortgages and lines of credit will see a 0.25% decrease, saving approx $15/month per $100,000 borrowed
  • Example: $400,000 loan saves $60/month
  • Important: This rate decrease does not directly impact fixed rates. Fixed rates won't drop by 0.25%
Why The BoC Lowered The Rate:
  • Canada's inflation dropped to 2.7% in June, from 2.9% in May
  • U.S. inflation dropped to 3% in June, from 3.3% in May
  • Increased unemployment rates, meaning more job loss
  • Decreased consumer spending, showing consumers are tightening budgets
 

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