Lenders see more homeowners pick variable-rate mortgages after Bank of Canada rate cuts
Following the Bank of Canada’s two consecutive interest rate cuts with potentially more to come by the end of the year, variable-rate mortgages are starting to pique homeowners interest again, mortgage brokers say.
Variable-rate mortgages are tied to rate changes by the Bank of Canada, Which on July 24 dropped down by 0.25 percentage point to 4.5 per cent. Meanwhile, most fixed-rate mortgages are tied to the five-year bond yield, meaning when the bond yield goes up so does the interest on fixed-rate mortgages — and when inflation rises, bond yields tend to follow suit. Bond yields have dipped recently, resulting in lower fixed-rate mortgages.
Read More: https://www.thestar.com/real-estate/lenders-see-more-homeowners-pick-variable-rate-mortgages-after-bank-of-canada-rate-cuts/article_f6d4cbaa-5987-11ef-b163-2b3cf1f49130.html?source=newsletter&utm_source=ts_nl&utm_medium=email&utm_email=72224480CB64F8E54824D046BDF8E05F&utm_campaign=lvng_384
