# BoC Rate Date - September 4, 2024 ### September 4, 2024 # End-of-summer BoC rate cut! [Email link](https://mailchi.mp/truenorthmortgage/boc-rate-mow-down) The Bank of Canada [mows down](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) its policy rate by another **0.25%** — to **4.25%**. Most bank prime rates will fall to **6.45%** (not including [lender](https://www.truenorthmortgage.ca/about-us/think-financial) variable-rate discounts off prime). ## Freshly lowered rates can help you save. Your lawn isn't the only thing getting a crisp mow before the frost hits (if you already see Halloween decorations, you know it's coming.) This BoC rate cut rolls out a spongy rug of fresh **budget relief** under the feet of variable-rate mortgage and [HELOC](https://www.truenorthmortgage.ca/mortgage-solutions/home-equity-line-of-credit) holders in time for fall — and keeps the [pressure](https://www.truenorthmortgage.ca/blog/how-government-bond-yields-relate-to-mortgage-rates) off fixed rates. ## What relief does this latest cut provide? For example, going from our current 5-year variable rate of 5.50% to 5.25% on a $500K mortgage with an original 25-year [amortization](https://www.truenorthmortgage.ca/blog/extended-amortizations) — that's about **$70 less** interest per month if you have [floating](https://www.truenorthmortgage.ca/blog/adjustable-rate-mortgage-canada) payments. The total relief of the past three **consecutive** rate cuts has mowed **over $220** off your variable payments 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 start ticking down as more $$$ goes towards your principal. ## Fixed-rates get a trim. Along with lower variable rates, **fixed-rate specials** are taking a weed-whacker to your interest costs. Are you a [first-time](https://www.truenorthmortgage.ca/mortgage-solutions/first-time-home-buyers) buyer, next-timer, or looking for a better [renewal](https://www.truenorthmortgage.ca/blog/negotiate-a-better-mortgage-renewal-rate) deal? We've got you covered with great rates and a [better](https://www.truenorthmortgage.ca/mortgage-solutions) mortgage fit. **[SEE OUR 2-YEAR DEAL](https://www.truenorthmortgage.ca/rates)** --- ## Is a monster cut coming? Just in time for scary goblins and zombies (aka Halloween), the BoC could bring in another rate cut — and the watch is on for a **bigger** drop of 0.50%. With the latest GDP reading (Gross Domestic Product) showing possible zero growth for Q3, a larger **kickstart** may be in the cards to ward off a recession — assuming **inflation** stays tucked in the shadows. Keep up with CEO Dan Eisner's **2024 Mortgage Rate Forecast** to keep tabs on the economic crawlies we may encounter ahead. **[READ OUR 2024 RATE FORECAST](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast)** ### Some factors contributing to today's rate drop: - July's inflation rate [cooperated](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast), down to 2.5%, closing in on the BoC's 2.0% target - With a June unemployment rate of 6.4%, some experts warn of hitting 7% by year-end - Zero economic growth projected for Q3 2024 - Deflated business and consumer sentiment - Burdened Canadian household budgets (seen with increased debt per household and reduced retail spending) ### 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 growth keeping to the 2% to 4% range - GDP benchmark of around 2% to 3% - 5-year [bond yields](https://www.truenorthmortgage.ca/blog/how-government-bond-yields-relate-to-mortgage-rates) that calmly trend in alignment with a 'neutral' BoC policy rate (right now pegged around 3.0%) — give or take term premiums at hand --- ## Variables are dropping. ### Yet for many, the grass is still greener with a fixed rate. Despite the allure of the **variable's potential to go lower** during its 5-year term than **locking** into a 5-year fixed right now — more Canadian home buyers and owners have been sticking with fixed rates. (Usually, about 30% choose a variable over fixed.) **[PEERING OVER THE FENCH AT A VARIABLE?](https://www.truenorthmortgage.ca/blog/should-you-choose-a-variable-or-fixed-rate)** --- ## Your supped-up (mortgage) tool shed. | | | | |:---:|:---:|:---:| | **[MORTGAGE PAYMENTS](https://www.truenorthmortgage.ca/tools/payments-calculator)** | **FAB CALCULATORS** | **[HOW MUCH HOME?](https://www.truenorthmortgage.ca/tools/affordability-calculator)** | | **[COMPARE AND SAVE](https://www.truenorthmortgage.ca/tools/savings-calculator)** | Spin some numbers. Then [apply](https://apply.truenorthmortgage.ca/apply) with us for **personalized service** that helps you save a **pile** of cash. | **[THE CLOSING COSTS?](https://www.truenorthmortgage.ca/tools/closing-costs-calculator)** | --- ## Shorter days, but more savings. At True North, we're [obsessed](https://www.truenorthmortgage.ca/about-us/about-us) with lower rates — **mowing down** the competition (while we say 'sorry!' as good Canadians) with our extensive lender **access**, volume rate **discounts**, and supreme, unbiased broker **expertise**. Whether your mortgage needs are straightforward or [complex](https://www.truenorthmortgage.ca/mortgage-solutions/complex-mortgages), over 15,000 5-star [reviews](https://www.truenorthmortgage.ca/about-us/reviews) show how much we care about saving you cash and stress. Just like the best lawn on your street, the **time and effort** we put in **shows** in your savings. And be sure to contact us for a **rate hold** to protect you from rate volatility, just in case! ## [EASILY APPLY](https://apply.truenorthmortgage.ca) online now **OR** ## [TALK TO A BROKER](https://www.truenorthmortgage.ca/company) in your preferred language **[THE LATEST RATE CUTS](https://www.truenorthmortgage.ca/rates)** --- ### Unbiased mortgage advice, year round - [How does the prime rate impact your mortgage?](https://www.truenorthmortgage.ca/blog/prime-rate-mortgages-explained) - [Flexible mortgage solutions for when big banks say 'no'](https://www.truenorthmortgage.ca/mortgage-solutions/complex-mortgages) - [How to negotiate a better renewal rate](https://www.truenorthmortgage.ca/blog/negotiate-a-better-mortgage-renewal-rate) - [Will home prices go down in 2024?](https://www.truenorthmortgage.ca/blog/housing-market-forecast) - [Can the mortgage stress test rate affect your home price?](https://www.truenorthmortgage.ca/blog/what-is-the-mortgage-stress-test) / /