Fixed Payment Variable Mortgages: If your payment is fixed, your payment remains unchanged. However, a greater portion of your payment will now go toward reducing your principal balance instead of paying interest. For example:

• A $500,000 uninsured mortgage with a 30-year amortization and rate of Variable Prime - 0.56% had a rate of 5.89% before the October cut with a payment of $2962.48. $508 of which went to principal. After October's cut, $717 of that payment would go to principal, and after December's cut $925 is going towards the principal, effectively dropping your amortization from 30yrs to just under 24yrs.

Adjustable Rate Mortgages: Your payment will decrease with this rate cut to maintain your original amortization schedule. For the same mortgage, your payment drops to $2,650.60, with $613 now going to the principal. This adjustment provides immediate relief to your monthly budget.

** Some banks will allow ‘fixed payment’ variable mortgage holders to adjust their payments. If a lower payment aligns more with your goals than shorter amortization; chat with your mortgage broker or call your bank directly to check your options.

Going Fixed: Fixed rates aren’t directly impacted by these cuts as they follow bond yields. Influenced by recent domestic political uncertainties, such as the recent resignation of Canada's finance minister, and global economic concerns impacting investor sentiment, the bond yields have only seen very slight downward trends when compared to the Bank of Canada decisions . If fixed is your preference, lock in your rate now but keep on your mortgage broker to push for better rates once you're under contract. 

Going Variable: Your purchasing power continues to grow as variable rates drop. This rate cut boosts borrowing capacity by another 4-5%. With more cuts potentially on the horizon, the trend is clear: Variable borrowers are in a strong position. But remember, as your buying power increases, so does everyone else’s. Acting now can help you beat the rush as sellers with listings that have sat over the holidays may be keen to move on to their next property.

Inflation Trends: Core inflation has been cooling but remains slightly above the Bank’s target range. Further cuts will depend on whether this trend continues.

Economic Growth: Recent GDP data suggests slowing growth, which supports further easing.

Global Influences: The Bank is also monitoring international monetary policies, particularly in the U.S., as well as global financial stability.

Ready to Buy: December and January are typically great times to be active as a buyer. This year inventory levels remain high, and many sellers are motivated. Acting now could give you a significant edge over spring competition.

Waiting for Another Cut: If your down payment or finances aren’t ready yet, there’s potential for rates to drop further. However, the spring market typically brings more competition and potentially higher home prices, offsetting the benefit of lower rates.

Mixing Fixed and Variable: Some buyers are opting for variable rates now and planning to lock into a fixed rate later in 2025. Discuss this strategy with your broker to ensure it aligns with your financial goals.

Fixed Payment Variable Mortgages: If your payment is fixed, your payment remains unchanged. However, a greater portion of your payment will now go toward reducing your principal balance instead of paying interest. For example:

• A $500,000 uninsured mortgage with a 30-year amortization and rate of Variable Prime - 0.56% had a rate of 5.89% before the October cut with a payment of $2962.48. $508 of which went to principal. After October's cut, $717 of that payment would go to principal, and after December's cut $925 is going towards the principal, effectively dropping your amortization from 30yrs to just under 24yrs.

Adjustable Rate Mortgages: Your payment will decrease with this rate cut to maintain your original amortization schedule. For the same mortgage, your payment drops to $2,650.60, with $613 now going to the principal. This adjustment provides immediate relief to your monthly budget.

** Some banks will allow ‘fixed payment’ variable mortgage holders to adjust their payments. If a lower payment aligns more with your goals than shorter amortization; chat with your mortgage broker or call your bank directly to check your options.

Going Fixed: Fixed rates aren’t directly impacted by these cuts as they follow bond yields. Influenced by recent domestic political uncertainties, such as the recent resignation of Canada's finance minister, and global economic concerns impacting investor sentiment, the bond yields have only seen very slight downward trends when compared to the Bank of Canada decisions . If fixed is your preference, lock in your rate now but keep on your mortgage broker to push for better rates once you're under contract. 

Going Variable: Your purchasing power continues to grow as variable rates drop. This rate cut boosts borrowing capacity by another 4-5%. With more cuts potentially on the horizon, the trend is clear: Variable borrowers are in a strong position. But remember, as your buying power increases, so does everyone else’s. Acting now can help you beat the rush as sellers with listings that have sat over the holidays may be keen to move on to their next property.

Inflation Trends: Core inflation has been cooling but remains slightly above the Bank’s target range. Further cuts will depend on whether this trend continues.

Economic Growth: Recent GDP data suggests slowing growth, which supports further easing.

Global Influences: The Bank is also monitoring international monetary policies, particularly in the U.S., as well as global financial stability.

Ready to Buy: December and January are typically great times to be active as a buyer. This year inventory levels remain high, and many sellers are motivated. Acting now could give you a significant edge over spring competition.

Waiting for Another Cut: If your down payment or finances aren’t ready yet, there’s potential for rates to drop further. However, the spring market typically brings more competition and potentially higher home prices, offsetting the benefit of lower rates.

Mixing Fixed and Variable: Some buyers are opting for variable rates now and planning to lock into a fixed rate later in 2025. Discuss this strategy with your broker to ensure it aligns with your financial goals.