The Bank of Canada has once again dropped their key policy rate, this time by .25%. This rate drop will most likely cause Canadian banks to drop their prime rate by .25%, which would bring prime to 5.2%.
For those with Variable Rate mortgages, Adjustable Rate mortgages, and Home Equity Lines of Credit - you will see a change to your mortgage (either payment or amortization period).
For those with Fixed Rate mortgages, there will be no change. Just a reminder that in general, fixed rates follow long term bond yields and are not directly impacted by the Bank of Canada rate changes like variable and adjustable rates are.
Lots of information to unpack in today's announcement. Have a listen to this episode, and reach out to us if you have any questions!
Next rate announcement is March 12th, come back and listen!
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