The Bank of Canada has just reduced its interest rate by 0.25%, bringing it down to 4.25%. This marks the third reduction this year, indicating a shift toward less restrictive monetary policy.
Our go to mortgage guy, Greg Bracken of Bracken Mortgages, writes the following quick read on some mortgage essentials:
What loan products does this cut affect?
Variable rate mortgage products and home equity lines of credit (HELOC) are examples of products that are influenced by the prime rate and rate cuts. It's important to note that this does not have a direct impact on fixed-rate mortgages (e.g. 1-5 year fixed terms).
On average, you can anticipate savings of $15 per month for every $100,000 of mortgage. So, for instance, if your mortgage balance is $500,000, your monthly payment would be approximately reduced by $75.
Here are the key points from the Bank’s decision:
Inflation and Prices:
Inflation slowed to 2.5% in July, with core inflation holding steady around the same level.
High inflation in shelter prices remains a major contributor but is showing signs of slowing down.
Canadian Economic Performance:
Canada's economy grew by 2.1% in the second quarter, led by government spending and business investment.
Preliminary data for June and July show a slowdown in economic activity. Employment growth has stalled, but wages remain high compared to productivity.
Global Economic Trends:
The global economy grew by 2.5% in the second quarter. The U.S. saw stronger-than-expected growth, though its labour market has started to cool.Growth in the Euro area is being driven by tourism, while manufacturing remains weak.China's economic growth is being hampered by weak domestic demand.
What’s Next?
The Bank is closely monitoring inflation, particularly the downward pressure from excess supply and the upward pressure from shelter and other services.
Future decisions will depend on incoming economic data, with the Bank committed to maintaining price stability.
The next interest rate announcement is scheduled for October 23rd.
With these changes in mind, if you need advice contact Greg Bracken of Bracken Mortgages to reassess your mortgage. He's happy to help you review your current mortgage situation and explore any potential savings or opportunities.
If you have any questions,click or call Greg: (604) 900-1956
Our go to mortgage guy, Greg Bracken of Bracken Mortgages, writes the following quick read on some mortgage essentials:
What loan products does this cut affect?
Variable rate mortgage products and home equity lines of credit (HELOC) are examples of products that are influenced by the prime rate and rate cuts. It's important to note that this does not have a direct impact on fixed-rate mortgages (e.g. 1-5 year fixed terms).
On average, you can anticipate savings of $15 per month for every $100,000 of mortgage. So, for instance, if your mortgage balance is $500,000, your monthly payment would be approximately reduced by $75.
Here are the key points from the Bank’s decision:
Inflation and Prices:
Inflation slowed to 2.5% in July, with core inflation holding steady around the same level.
High inflation in shelter prices remains a major contributor but is showing signs of slowing down.
Canadian Economic Performance:
Canada's economy grew by 2.1% in the second quarter, led by government spending and business investment.
Preliminary data for June and July show a slowdown in economic activity. Employment growth has stalled, but wages remain high compared to productivity.
Global Economic Trends:
The global economy grew by 2.5% in the second quarter. The U.S. saw stronger-than-expected growth, though its labour market has started to cool.Growth in the Euro area is being driven by tourism, while manufacturing remains weak.China's economic growth is being hampered by weak domestic demand.
What’s Next?
The Bank is closely monitoring inflation, particularly the downward pressure from excess supply and the upward pressure from shelter and other services.
Future decisions will depend on incoming economic data, with the Bank committed to maintaining price stability.
The next interest rate announcement is scheduled for October 23rd.
With these changes in mind, if you need advice contact Greg Bracken of Bracken Mortgages to reassess your mortgage. He's happy to help you review your current mortgage situation and explore any potential savings or opportunities.
If you have any questions,click or call Greg: (604) 900-1956
