Bank of Canada Cut Will Prompt Lower Variable Mortgage Rate Costs: Ratehub

Bank of Canada Cut Will Prompt Lower Variable Mortgage Rate Costs: Ratehub
Governor of the Bank of Canada Tiff Macklem participates in a news conference on the bank's interest rate announcement and release of the Monetary Policy Report, in Ottawa, on Jan. 29, 2025. The Canadian Press/Justin Tang
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Experts say homeowners with variable mortgage rates will benefit from lower monthly payments after the Bank of Canada’s latest cut to its key policy rate.

On Wednesday, the major six banks announced they would decrease their prime rates by a quarter-percentage point, from 5.45 percent to 5.2 percent, effective the following day. That came after the Bank of Canada cut its key interest rate target for the sixth consecutive time since June.