# BoC Rate Date - December 11, 2024 ### December 11, 2024 # A rate cut! It's everything you wanted. [Email link](https://mailchi.mp/f5e3684282f8/monster-cut-5384118) ## You must be on the 'Nice' list. The Bank of Canada slid down the economic chimney and **delivered** a Santa-sized **0.50% rate cut** (just for you!) in time for the holidays — [bringing](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) its policy rate from 3.75% to **3.25%**! (A typical cut is an elf-sized 0.25%.) Most bank [prime rates](https://www.truenorthmortgage.ca/blog/prime-rate-mortgages-explained) will fall to 5.45% (from 5.95%), not including [lender](https://www.truenorthmortgage.ca/about-us/think-financial) discounts off prime. We left some milk and cookies for a job jolly well done. ## A gift that doesn't smack of 'last minute.' Mortgage holders of all stripes are **thrilled** with this thoughtfully-timed rate drop (though fixed-rate mortgagees won't likely enjoy the relief until it's time to renew into 'less high' rates). It **unwraps a little extra budget room** and months of ongoing value for those holding a [variable](https://www.truenorthmortgage.ca/blog/variable-vs-fixed-mortgage-rates)-rate mortgage or paying interest on a [HELOC](https://www.truenorthmortgage.ca/mortgage-solutions/home-equity-line-of-credit). > ## Sleigh bells ring, savings glisten. > > Every time you hear a bell ring, rates are dropping? Well, that's not how the saying goes, but it works for today. > > For a sample $500K mortgage, original 25-year amortization: > > - A 4.85% 5-year [variable rate](https://www.truenorthmortgage.ca/rates) (including discount off prime) will **drop** to **4.35%** > - You'll pay about **$140 less** interest per month (usually by the next full-month payment) if you have [floating](https://www.truenorthmortgage.ca/blog/adjustable-rate-mortgage-canada) payments > > The past 5 consecutive prime rate cuts (totalling 1.75%!) have filled your stocking with an **extra $490 a month** since June 2024! > > Do you have [fixed](https://www.truenorthmortgage.ca/blog/will-your-variable-rate-payment-drop-when-rates-do) variable payments (with a big bank)? Your amortization will tick down faster as **more $$$** goes towards your principal. ## Shining bright like Rudolph's nose — some advice to see you through. ### Tidings of comfort. Is more (rate-cut) joy on the way? There's a lot going on here in Canada and the U.S. that could derail future rate cuts. Keep up here, with insights from CEO Dan Eisner. **[RATE FORECAST 2025](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast)** ### Fixed rates get a lump of coal. Fixed mortgage rates don't budge with prime-rate drops. But your renewal will look a little happier if rates continue downward. **[WHAT MOVES FIXED RATES?](https://www.truenorthmortgage.ca/blog/fixed-rates-dont-change-when-prime-does)** ### Variable rate choice still on the naughty list? Prefer to be nestled all snug in a 5-year fixed-rate mortgage? Sure, but the variable rate choice is stirring more interest as time passes. **[RATE CHOICE 2025](https://www.truenorthmortgage.ca/blog/should-you-choose-a-variable-or-fixed-rate)** --- ## Contributing to today's rate drop: - October's headline [inflation](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) rate rose to 2.0%, but it's still within the BoC's target - A **rising** unemployment rate (up to 6.8% in November) works against the productivity needed to keep the economy out of a recession - Job wage growth is declining, especially in the private sector - An upcoming wall of [renewals](https://www.truenorthmortgage.ca/mortgage-solutions/renewals-transfers) (into higher market rates) will eat into Canadian household budgets - **Sluggish** economic growth and productivity are expected to cap 2024 and continue to look grim for 2025 ### The BoC must stop inflation from coming! - The **'G.S.T' holiday** is [costing](https://www.ctvnews.ca/business/implementing-gst-break-for-two-months-proving-to-be-a-nightmare-for-businesses-1.7126895) businesses money to manage, which may be passed on to consumers - Increased Canadian government spending is inflationary - Labour strikes may work their way into [higher](https://www.cbc.ca/news/canada/ottawa/as-canada-post-strike-drags-on-frustration-mounts-over-prohibitive-courier-costs-1.4273733) prices - Proposed G.S.T rebates could fuel consumer spending, substituting the effect of a rate cut (higher interest rates for longer = higher prices) - **Grinch-like** U.S. tariff proposals would raise prices, dent growth, and introduce more supply-chain disruption - **Wider** rate divergence from the U.S. would hurt the Canadian dollar, already sliding amid U.S. growth optimism - Increasing producer costs may also soon reflect at the till --- ## *From the True North Mortgage Pole to you: Rate Specials!* Now Dasher, now Dancer, now, Prancer and Vixen!\ On, Comet! on, Cupid! on, Donner and Blitzen! (These are some endeared True North broker nicknames; any similarity to Santa's guiding reindeer not intentional.) **To the top of the wall — we bring lower mortgage [rates](https://www.truenorthmortgage.ca/rates) for all!** --- ## Did you deck the halls … and ding your credit score? Holiday cheer is fun. But the debt hangover sometimes [isn't](https://www.truenorthmortgage.ca/blog/credit-101). Learn how lumping together holiday debt into **one mortgage payment** (through a mortgage refinance) can help you **save interest — and stress.** Or, a HELOC (home equity line of credit) may offer more **wiggle room** with this latest interest rate drop to help cover off higher-interest debt. **[CONSOLIDATE DEBT?](https://www.truenorthmortgage.ca/mortgage-solutions/refinancing-options)** · **[HELOC INFO](https://www.truenorthmortgage.ca/mortgage-solutions/home-equity-line-of-credit)** --- ## Don't be a cotton-headed ninny-muggins. ### Instead, be a smart elf and get your best rate *with* a better mortgage. While ultra-low rates may sparkle, they often come with **strings** attached, like inflexible terms, costly [fees](https://www.truenorthmortgage.ca/about-us/fees), or [penalties](https://www.truenorthmortgage.ca/blog/how-much-will-it-cost-to-break-your-mortgage) for changes you didn't see coming. Let our **True North Mortgage experts** unwrap the perfect combination: great rates paired with [flexible](https://www.truenorthmortgage.ca/mortgage-solutions/pre-payment-penalties-and-privileges) options that fit your unique needs — whether your mortgage details are straightforward or [complex](https://www.truenorthmortgage.ca/mortgage-solutions/complex-mortgages). ## [EASILY APPLY](https://apply.truenorthmortgage.ca) online now **OR** ## [TALK TO A BROKER](https://www.truenorthmortgage.ca/company) in your preferred language **[YULE LOVE OUR RATES](https://www.truenorthmortgage.ca/rates)** --- ### Tree-mendously good advice: - [Considering buying a home? A wintertime pre-approval is snow joke](https://www.truenorthmortgage.ca/blog/why-wintertime-is-a-hidden-gem-for-mortgage-pre-approvals) - [Is the Grinch sneaking cash from your variable rate offer?](https://www.truenorthmortgage.ca/blog/semi-annual-interest-compounding-vs-monthly) - [Let our expert brokers sleigh your renewal worries](https://www.truenorthmortgage.ca/blog/worried-about-your-mortgage-renewal) - [Are rate drops impacting housing markets?](https://www.truenorthmortgage.ca/blog/housing-market-forecast) - [How do declining rates affect interest-free Halal mortgages?](https://www.truenorthmortgage.ca/blog/halal-mortgage) / /