Canadian Homeowners Consider Switch to Variable Rate Mortgages After Big Rate Cut

Canadian Homeowners Consider Switch to Variable Rate Mortgages After Big Rate Cut
A for sale sign is displayed outside a home in Toronto on Dec. 13, 2021. Reuters/Carlos Osorio
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TORONTO—More Canadian homeowners are considering switching to variable rate from fixed rate mortgages after an unusually large interest rate cut by the central bank on Wednesday, mortgage brokers said.

The Bank of Canada cut its benchmark policy interest rate by 50 basis points to 3.75 percent, giving some relief to homeowners after mortgage payments shot up in recent years and increased overall living costs.