For every 25 basis point drop, adjustable variable rate mortgage holders can expect to pay approximately $15 less per $100K in monthly mortgage payments, according to Victor Tran, Rates.ca mortgage and real estate expert.
“While a 25-basis-point cut will lead to lower variable rates, fixed rates have remained sticky, despite recent dips in bond yields,” Tran said.
“This overnight rate cut is unlikely to lead to substantial activity in the housing market, and the down market is likely to continue for the foreseeable future.
For those planning to buy in the near term, Tran suggests waiting to close until November, after the Bank of Canada releases its next overnight rate decision on October 29.
“While lower rates aren’t guaranteed, it’s possible we may see more overnight rate cuts before the end of the year, and closing later in the year will allow a homeowner to take…
