Welcome to the latest episode of Make Money Count! The Bank of Canada has officially lowered its key interest rate by 25 basis points, bringing the prime rate down to 5.2%. And this might just be the beginning—another rate cut is expected in March, with the overnight rate projected to drop to 3.95% over time. So, what does this mean for homeowners, investors, and borrowers? 

Variable vs. Fixed Rate Mortgages

Lenders are reducing discounts on variable rates, making it harder to secure the best deals. If you’re locked into a high fixed rate, is now the right time to break your mortgage and switch to variable?

Line of Credit Rates on the Rise

Even big banks like Scotiabank have increased line of credit rates from Prime + 50bps to Prime + 70bps. Banks are playing it safe—does this mean less attractive deals on home equity lines of credit?

The Housing Market’s Next Moves

Bond yields have dropped from 3.2% to around 2.85%, signaling a downward trend in long-term rates. With the market being oversupplied, particularly in condos, and reduced immigration slowing demand, will developers slow down new projects? This could impact construction jobs and the broader economy.

What’s Next for the Economy?

Employment numbers are weakening, and layoffs may increase as construction slows. With tariff concerns cooling down, does the uncertain economic outlook mean more challenges ahead?

What Should You Do Next?

Watch the full podcast now to get the latest insights and smart strategies to help you make the best move. If you’re thinking about switching to a variable rate or have a mortgage renewal coming up, now is the time to act!

Have questions about your mortgage strategy? Let’s talk! Our team is here to help you make the right choice in this changing market.

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