Mortgage Blog
Canada's Mortgage Experts
Bank Of Canada Cuts Its Key Interest Rate to 3.25%
December 11, 2024 | Posted by: Cecile Morell
Why the Bank of Canada’s Latest Rate Cut Matters for Homeowners in Ontario and Manitoba
Big news from the Bank of Canada! As of December 11, 2024, the Bank announced a key interest rate cut, bringing the rate down to 3.25%. This decision marks another step in easing monetary policy to support the Canadian economy amid ongoing global uncertainties.
If you’re a homeowner or planning to buy a home in Ontario or Manitoba, especially in Winnipeg or the GTA, here’s what you need to know about this rate cut and why working with a mortgage broker can help you make the most of it.
What the Rate Cut Means for Variable-Rate Mortgages
If you have a variable-rate mortgage, this rate cut is great news! Variable rates are directly tied to the Bank of Canada’s policy rate. With the new rate of 3.25%, you can expect:
- Lower Monthly Payments: Your interest rate will decrease, reducing your monthly mortgage costs.
- More Savings: With less money going toward interest, you’ll have more financial flexibility for other expenses or investments.
- Opportunity to Reassess: It might be a good time to evaluate whether sticking with a variable rate or switching to a fixed rate makes sense for your long-term goals.
What About Fixed-Rate Mortgages?
Fixed mortgage rates are influenced by bond yields, not the Bank of Canada’s policy rate. While this cut doesn’t immediately lower fixed rates, it can create downward pressure on bond yields, potentially leading to more competitive fixed-rate options in the coming months.
Why Choose a Mortgage Broker?
When navigating these changes, a mortgage broker offers tailored solutions to help you make the most of the current market. Here’s why working with a broker is a smart move:
- Expert Advice: Brokers understand the nuances of rate changes and how they impact your financial situation.
- Access to Better Rates: Brokers have access to multiple lenders, ensuring you get the best deal.
- Personalized Service: From first-time buyers to those renewing their mortgage, brokers tailor their advice to your unique needs.
Serving Winnipeg and Beyond
As a mortgage professional based out of the Invis office on Pembina Highway in Winnipeg, I specialize in helping clients across Manitoba and Ontario. Whether you’re in Winnipeg, the GTA, or surrounding areas, my goal is to provide you with the guidance and tools to navigate these rate changes confidently.
Take Action Now
With the Bank of Canada’s rate cut creating new opportunities, now is the time to act. Whether you’re exploring your first home, renewing your mortgage, or considering refinancing, I’m here to help.
Contact me today to discuss your options and secure the best mortgage strategy for 2025 and beyond.
Seal the deal with Confidence Trust The Mortgage Boss.
