Finally, the news we’ve all been waiting for. The Bank of Canada interest rate cut!
The Bank of Canada cut the interest rates from 5% to 4.75%… for the first time in 4 years.
Bank of Canada interest rate cut, but what does that mean for you?
For every $100,000 borrowed, you save about $15 per month.
Calculating mortgage payments break down:
- At 5%, it used to cost $582/mo to borrow $100,000
- Now at 4.75%, it costs $567/mo to borrow $100,000
Here’s what you save each month based on your mortgage size:
| Mortgage Size | Monthly Savings |
|---|---|
| $400,000 | $60 |
| $500,000 | $75 |
| $600,000 | $90 |
| $700,000 | $105 |
For buyers, this means you may have to move at a faster pace than you were previously used to. Make sure to stay updated on property listings and secure your pre-approvals as soon as possible.
And for sellers, this could mean a good opportunity for a quick sale.
Month-over-month home sales have already picked up quite a bit, with national sales up 14.5% from March to April and 10.1% year-over-year.
If you’re curious about how this rate cut impacts you, our team is here to help. Send us an email at info@valery.ca and we’ll shoot over some more info.