Earlier this month, the Bank of Canada made another jumbo rate cut of half a percentage point (0.50%) off the prime lending rate. Let's take a look at what this means for you as a current or future homeowner, as well as what this means for the state of our economy in Canada. To begin, if you have a variable rate mortgage, since June you've seen your interest rate be cut by 1.75%, which is a major drop in interest rate. To put this into context, what this means is that for every $100,000 of mortgage money that you currently owe on…

2023 was another consecutive year of rising interest rates as we grappled with getting a hold on inflation.

However, the end of last year showed some light at the end of the tunnel. Due to inflationary numbers coming in much better than expected, Bank of Canada (BoC) choose not to continue the pattern of additional increases to the prime lending rate for all of last quarter avoiding further increases to variable rate holders.