# BoC Rate Date - October 23, 2024 ![Halloween](https://d2r7yk1mqahd04.cloudfront.net/images/Halloween.png) ### October 23, 2024 # Trick or Treat! A (monster) rate cut is pretty sweet. [Email link](https://mailchi.mp/truenorthmortgage/monster-cut) The Bank of Canada posts a monster-sized [cut](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) of **0.50%** (cue the screams), bringing its policy rate from 4.25% to **3.75%**! (A typical cut is a baby-goblin-sized 0.25%.) Most bank [prime rates](https://www.truenorthmortgage.ca/blog/prime-rate-mortgages-explained) will fall to **5.95%**, not including [lender](https://www.truenorthmortgage.ca/about-us/think-financial) discounts off prime, and will directly affect variable mortgage and [HELOC](https://www.truenorthmortgage.ca/mortgage-solutions/home-equity-line-of-credit) rates. ## Are rates still giving off spooky vibes? The **hauntingly high** interest rates we've [endured](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) are officially creeping down the wall. Yet today's monster cut is a **jump scare** to get the economy's heart rate going again and a bat signal that rates are still too **restrictive**. Perhaps the spooky haunted (rate) house is a **bit less** intimidating — inside, it's a little old grandma serving still-warm, pumpkin-shaped cookies (aka **more rate cuts**) rather than a posse of budget-eating zombies. > ### It's 'Thriller Night' for Mortgage Payment Relief > > For example, on a $500K mortgage with an original 25-year amortization — going from a 5-year [variable](https://www.truenorthmortgage.ca/rates) rate of 5.25% to **4.75%** is about **$140 less** interest per month if you have [floating](https://www.truenorthmortgage.ca/blog/adjustable-rate-mortgage-canada) payments. > > The past four **consecutive** rate cuts (totalling 1.25%) have filled your candy bowl with an **extra $360** a month since June 2024. > > If you have [fixed](https://www.truenorthmortgage.ca/blog/mortgage-trigger-rate) variable payments (usually with a big bank), your amortization will tick down faster as **more $$$** goes towards your principal. ## There's still bats in the belfry and cobwebs in the foyer. Yes, this is a **bigger** rate-cut. And yes, True North's CEO Dan Eisner is expecting prime rates to continue their **decline** into 2025. But, he also cautions that the **economic cobwebs** haven't all cleared — the reaction to this latest cut (or global events) could spur out-sized spending or send up an inflation flare as year-end approaches. ### Will we see another double-cut? Keep up as Dan shines a light on the economic crawlies and lurking surprises to predict where rates may be going. **RATE FORECAST** --- ## Contributing to today's monster drop: - September's headline [inflation](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) rate was 1.6%, well below target - And an unemployment rate of 6.5%, with experts warning that 7% is on the horizon - Job wage growth is finally declining (last read was 4.6%) - Housing [markets](https://www.truenorthmortgage.ca/blog/housing-market-forecast) are still impacted by higher rates and eroded home [affordability](https://www.truenorthmortgage.ca/tools/affordability-calculator) - Tepid economic growth projected for Q3 and Q4 2024 ### What factors indicate a balanced economy? - Inflation around 2.0%, the BoC's target for setting its policy rate - Unemployment rate of around 6.0% - Job wage increases keeping to the 2% to 4% range - GDP growth of around 2% to 3% --- ## *They're heerrrrree.* ### Check out our Fixed Rate deals. Our **great rates** cut through the static — and the competition. Fixed mortgage rates **aren't** directly impacted by today's prime rate drop, already coming down [ahead](https://www.truenorthmortgage.ca/blog/how-government-bond-yields-relate-to-mortgage-rates) of prime rate changes. --- # Braving the variable scare. ### What's that noise in the basement?? As of late, more True North clients are cautiously checking out a 'terrifying' variable-rate mortgage and [deciding](https://www.truenorthmortgage.ca/blog/should-you-choose-a-variable-or-fixed-rate) it's just a cat (aka mortgage savings vs. rapid rate hikes). This September, about **27%** choose a variable (up significantly from the first-half of 2024), about **27%** choose a 5-year fixed, and about **23%** choose a 3-year fixed. **[HAVE VARIABLE FOMO?](https://www.truenorthmortgage.ca/blog/should-you-choose-a-variable-or-fixed-rate)** --- ## No tricks here — our service treats you right, year after year. Dare to check us out — don't accept your bank's first [purchase](https://www.truenorthmortgage.ca/mortgage-solutions/pre-qualify-in-minutes) or [renewal](https://www.truenorthmortgage.ca/mortgage-solutions/renewals-transfers) offer. We invest the time and effort to help you save [thousands](https://www.truenorthmortgage.ca/tools/savings-calculator) and avoid spooky mortgage [traps](https://www.truenorthmortgage.ca/blog/mortgage-traps) that limit your options or cost you more down the road. Whether your needs are straightforward or more [complex](https://www.truenorthmortgage.ca/mortgage-solutions/complex-mortgages), our **expert brokers** offer transparent advice, your best rates, and an exceptional mortgage experience. ## [EASILY APPLY](https://apply.truenorthmortgage.ca) online now **OR** ## [TALK TO A BROKER](https://www.truenorthmortgage.ca/company) in your preferred language **[UNBOOLIEVABLE RATES](https://www.truenorthmortgage.ca/rates)** --- ### The Great Pumpkin of mortgage advice - [How does the prime rate impact your mortgage?](https://www.truenorthmortgage.ca/blog/prime-rate-mortgages-explained) - [Scary mortgage situation? Maybe we can help](https://www.truenorthmortgage.ca/mortgage-solutions/complex-mortgages) - [Housing Market Forecast](https://www.truenorthmortgage.ca/blog/housing-market-forecast) - [Need fall funds? Ask about a refinance](https://www.truenorthmortgage.ca/blog/refinance-for-funds) - [See ALL of the recent mortgage rule changes](https://www.truenorthmortgage.ca/blog/will-mortgage-rules-change-canada) / /