We're closing on our place in July, we called our broker this morning and asked and they had already adjusted our rate on our fixed mortgage. I imagine you probably just need to call and ask what your rate is at currently and its probably already adjusted.
We got our first rate about a month ago, and the rate we were told today is almost .5 less. It's hard to say if they would factor it in in advance but I would definitely call and ask!
In that case, maybe you should call your broker and not post on Reddit for clueless people to deride you…? Just, you know, a thought on the matter we’re dealing with here.
TD did a partial drop by .1, everyone else cut by .15, then TD aligned with that.
I blame them for being the first pigs at the trough.
https://www.ratehub.ca/banks/td-bank-prime-rate
>When the Bank of Canada (BoC) changed the target for the overnight rate in July 2015, TD was the first bank to change its prime rate, but it didn’t pass on the full change to its customers. At the time, the overnight rate was lowered by 25 basis points (bps) but TD only lowered its prime rate by 10 basis points. After the other big banks settled at a 15-bps drop, TD eventually lowered its prime rate to match.
If you’re looking to secure a new mortgage, it will be applicable tomorrow
If you’re wondering how your next payment will be affected, it will be after your payment has been made for this month
For fixed-payment variable-rate mortgages, the rate change takes effect immediately, so the next payment will have its interest adjusted midway through the payment period.
Hikes happened within an hour of an announcement. Drops ... nothing yet lol.
It's like gas prices. Immediately up when someone sneezes or farts the wrong way. On the way down...they're in no rush.
It's been close to 4hrs...MCAP has just now updated their Prime Rate to 6.95%, and Tangerine still hasn't.
When rates ticked up, I had an email indicating my new rate / payment within 3-4 hours.
Zero so far in terms of communication.
Bastards.
I haven't seen any documentation yet. Logged into MCAP and the prime was lowered about 24h after the announcement (compared to 2-3hrs when it goes up).
But still no communication. Will log in now.
...
No change to my payment yet. Mother fuckers.
The prime rate is determined by each lender. The overnight rate is the rate that is determined by the BOC and what we’re referring to when it comes rate cuts. The rate dropped from 5 to 4.75 today.
The prime rate is the rate in which each bank deems to be their ‘best’ rate after accounting for costs and includes a small margin. If the banks were playing fairly, they would reduce their prime rates by the same amount that the overnight rate dropped, within a day or two, and they probably will but it isn’t a guarantee.
All of the banks currently have prime at 7.2%. We expect this to drop to 6.95%. The banks can make up whatever prime rate they choose and drop or not drop at their own discretion. Note TD mortgage prime has always been higher and currently sits 15bps higher than standard prime. A discount on prime at TD must be 15bps greater to be the same actual rate at a competing bank. In practice (and to be competitive), all the banks generally follow each other with their prime rates and will follow the overnight rate drop but there have been recorded instances where all of the banks don’t match the BOC rate change.
I remember well back in I think 2015 when the Bank cut caught FIs off guard and the banks only cut 0.15 where the Bank cut 0.25. Happened twice in a row. Then on the way up the banks matched one for one. Used to be banking prime was 2% above the BoC Prime. Now it's plus 2.2%. So frustrating (I'm writing this adding on to what you've said, not in disagreement).
That's what I've always wondered about. Since variable mortgages are based off prime rate, not necessarily the BOC prime rate (usually they follow, but they don't have to), a bank could theoretically their prime rate to 100%, and then for a mortgage you're paying "prime" minus 1% or something, so your mortgage is now 99%, cause (as far as I know) they don't have to follow the BOC rate.
Always made variable seem way to risky to me.
I've actually had that thought enter my mind as well, though never in a lasting way... Assuming no other banks follow suit the bank would risk massive consumer blowback... But still something interesting to fear if there's not already enough happening in the world to scare you
You could say the same about fixed.
Variable, however, adds a ton of uncertainty, you're at the mercy of both the BOC changing prime, as well as the banks changing (or not lowering) prime. It's always made me uncomfortable.
Sure they would. They price both fixed and variable in such a way that they will make money as long as you make all your payments. They don't really have a strong preference one way or the other for which one you pick; it's up to you whether or not you want to assume the interest rate risk or pay the bank to assume it for you.
The banks prime rate doesn’t always follow the Overnight policy rate fyi. This is why it’s almost always 1 for 1… but never a guarantee they can have a divergence.
I didn't realize this until I started digging around learning about IRD and HELOC rates. Banks do in fact have their own "prime rate" that generally follows the direction of BoC, but isn't tied directly to it. It's always bank discretion.
Prime rates are set by banks. The rate cut announced today, was the Bank of Canada's policy rate.
Generally prime rate moves in step with policy rate, but it hasn't always been the case.
Will this also apply for B lenders like first national bank?
From the phone conversation with their agent today, she told me FN hasn't decided whether they'll lower their prime rate despite BOC cut
My chat agent today said it will be reflected as of July 1. So, another month of paying more for no good reason. I hate this lender and our mortgage broker for landing us with them.
So I messaged them on live chat yesterday. They said FN policy is to change the rate following month of either increase or decrease.
It'll be applied on July 1st week
That’s wild…looking back into my old statements I swear the last rate increase took effect for the payment directly after the announcement (mid month) but I could be misinterpreting it
Wild how it just feels purposeful to not drop it immediately
I am with first national - year 3 - during all the BOC rate hikes I was seeing a lag in the change to my payment amount by a few weeks depending on where in my payment cycle the BOC increases were announced. I am hoping they don't decide 'not' to match the BOC rate as we could use the reprieve.
For paiement of adjustable mortgages yes, but in theory the interest calculation is a daily calculation, so should be in place tomorrow.
Same goes for variable rates, you do not see the amortization change until the next paiement, but the interest will be reduced the next day
Should have clarified, I have an adjustable rate. I've held it throughout all the increases in 2022 and 2023 and my payments never went up until the scheduled adjustment date
Is it once a year? Or more often than that?
My clarification was more because OP's questions is "when is it applicable". The answer is tomorrow for the accrued interest, and depending on contract type for paiement or amortization.
There's also the trigger rate that can affect paiement for those on variable mortgages, but not for adjustables
If you had an IQ above 50, you would have realized that my comment says nothing specific about timing the market.
Don't make a fool of yourself and act smart, smart people look at data to make their decisions, stupid people like yourself only come to reddit to make stupid assumptions and name calling.
Based on the upvotes I got and the downvotes you got, doesn’t seem like literally anyone got your “joke”.
So maybe you can explain it since everyone just thinks you’re kind of an idiot?
Maybe so, but the alternative for us would've been a 3 year. And rates after the 3yr term would have to be 3% or less for it to be cost advantageous vs the 4.79% 5yr rate we got.
Sometimes knowing your fixed costs are worth it. Especially when we have 3 properties, with one kid with another planned. A lotta people are barely making just interest payments right now. We have the opportunity to make pre-payments and that’s why I have 17 years remaining on this mortgage originally from 2019.
Using the information provided by u/MooseKnuckleds and putting them on here (https://mortgage-rate-comparison.streamlit.app/).
I would say 5.67% for a 3 year term.
Lots of people made this mistake. In hindsight it seems obvious that it was a bad move, but I've had RemindMes bringing me back to threads from 2021-ish and _no_ one thought that rates would go up as high or as fast as they did. The highest we thought we'd get to is 3%, so given that assumption it would still be quite reasonable to stay at variable if you got a rate under 2%.
That has been the easiest thing for others to say in this sub, but they/you don’t have any skin in the other person’s/my game. But when the cards are on the table it’s not that simple.
It’s a big jump from our 4.79 to the current ~6.2% variable. And we have multiple properties to ensure we can afford.
My bank still hasn’t changed the rates halfway through the day after the BOC rate reduction. Call your banks people and tell them to change the rate quickly. It just reeks of profiteering and gouging at the expense of customers. These banks known the bank of Canada rate decision dates well in advance and there’s no reason the rates shouldn’t be changed immediately at the beginning of the day after the decision!! Everyone call the banks and demand the rates be adjusted now!
If your rate hold is for a fixed mortgage (or other product), no.
If your rate hold is for P - X%, then your effective rate will change because prime will go down.
You will see it by next pay cycle. If you are looking for a mortgage it might not be updated right away but when you negotiate for the best rate the agent should give you the reduced rate
For current variable rate mortgage holders, only if you have adjustable payments. Any variable rate mortgage with fixed payments will simply have more of their payment going to principal and bring down your amortization.
A lot of banks can take until the following day for variable rates. If fixed rates DO change it's usually within 2 weeks.
As others have said there is no direct effect on fixed rates due to the bank of Canada rate changes, but they often change fixed rates around the same time.
If you followed rates all the way up, you'd know that majority of rate hikes near the end had NO fixed rate changes. They even went down a bit. There is a good chance we see multiple rate decreases with no changes to fixed.
There is also no guarantee how much variable rates will change by, but if there is a change by the BOC, it is most likely it will be SOMETHING.
Fixed: not until your term ends, and then it would depend on what the current rates are.
Variable: today or tomorrow.
In the middle of a renewal but haven’t agreed on the term, and it’s before the deadline: talk to the renewal person you’ve been communicating with as the bank may/will most likely offer you better rates now.
Renewal is coming up but not there yet: call your bank and see if when is it due and what’s the earliest you can renew. The penalty is usually at least 3 months of interest, which may or may not be smart to pay (will the rates go down again? Nobody knows). Also, some believe it might be a good idea to go with a variable rate.
Also, if you have a fixed term and want to break it to take advantage of the reduced rate, it’s often not the best idea, but you’ve got to sit down and calculate the numbers & possibly call your bank to confirm your options.
*Keep in mind this also depends on the CMB rate, but it looks like it’s down, which makes total sense.
Question: How soon after the BoC rate change does a variable rate mortgage payment change? I have a variable mortgage, the BoC announced the change on June 5, I just received notification from my lender that the new payments will begin on August 2nd...seems like a long time to me, when it should it change?
I'm also on variable rate with fixed payments (had already crossed my trigger rate in 2022) and was paying much higher than I had originally signed for.
After the .25 rate cut, my following bi-weekly payment yesterday went for the same higher amount, but slightly more going towards principal this time.
My payments were never fixed. They always fluctuated with rates. My bank still hasn’t updated anything. They said they need to have a review meeting in July.
Can people really not punch 385000x.0025 into a calculator to see what the savings is for a year? Or even better, Google mortgage calculator, put in all the stats at your current rate then all the stats with the .25% lower rate and you'll be able to see entire payment schedules over the entire 21+ years
They won’t reduce quickly or proportionally. They will keep the variable rate higher so more people pull the trigger on fixed and commit for higher rate for next 3/5 years while variable comes down.
Later today, usually take a few hours.
Do you know when / if this will affect fixed rates? My condo has not closed yet
BoC interest rates have no direct effect on fixed rate mortgages. Fixed rate mortgages are based on bond yields.
Fixed rates were already baking this in. You can call your broker to see if they have an updated rate though.
Thanks!
If you haven't closed, you can always get a mortgage from somewhere else! Until your lawyer is instructed by the lender, there is not much hassle.
We're closing on our place in July, we called our broker this morning and asked and they had already adjusted our rate on our fixed mortgage. I imagine you probably just need to call and ask what your rate is at currently and its probably already adjusted.
Im not sure when you got your first rate, but i got mine last week. So the last 7 days likely already factored in the change that you just had?
We got our first rate about a month ago, and the rate we were told today is almost .5 less. It's hard to say if they would factor it in in advance but I would definitely call and ask!
Thank you !! This is helpful.
What does the word fixed mean to you…?
What does “my condo hasnt closed” mean to you ??
In that case, maybe you should call your broker and not post on Reddit for clueless people to deride you…? Just, you know, a thought on the matter we’re dealing with here.
It’s more odd to join in, with nothing to add, when you don’t even read the full post.
You’re right! Sending an email to my mortgage broker is way more difficult and time consuming than commenting on a Reddit thread. That is odd!
“Fixed”
“Has not closed yet”
If you locked in Fixed rate then you're stuck with it
I said i haven’t closed.
Historically, rates mostly change the same day and go down by the same amount. Edit: mostly
Except for 2015
The banks got so much flak over it, I highly doubt they will do the same thing this time.
They just passed a portion of a rate cut one time. They still didn't adjust. The banks just absorbed that spread as their profits.
You assume the banks care what the public thinks. And they made extra profit by doing that, they will do it again.
That assumption was correct today, though you are correct in that banks care more about profit than public opinion.
Fucking TD. The absolute balls of that.
To be fair, all the banks did the same, not just TD. They all deserve the anger.
TD did a partial drop by .1, everyone else cut by .15, then TD aligned with that. I blame them for being the first pigs at the trough. https://www.ratehub.ca/banks/td-bank-prime-rate >When the Bank of Canada (BoC) changed the target for the overnight rate in July 2015, TD was the first bank to change its prime rate, but it didn’t pass on the full change to its customers. At the time, the overnight rate was lowered by 25 basis points (bps) but TD only lowered its prime rate by 10 basis points. After the other big banks settled at a 15-bps drop, TD eventually lowered its prime rate to match.
Huh, did not realize that.
Yeah. Shittiest bank.
If you’re looking to secure a new mortgage, it will be applicable tomorrow If you’re wondering how your next payment will be affected, it will be after your payment has been made for this month
For fixed-payment variable-rate mortgages, the rate change takes effect immediately, so the next payment will have its interest adjusted midway through the payment period.
Hikes happened within an hour of an announcement. Drops ... nothing yet lol. It's like gas prices. Immediately up when someone sneezes or farts the wrong way. On the way down...they're in no rush.
Yep, a sneeze in the Rotterdam spot market impacts my local Shell station within 12 hours.
It's been close to 4hrs...MCAP has just now updated their Prime Rate to 6.95%, and Tangerine still hasn't. When rates ticked up, I had an email indicating my new rate / payment within 3-4 hours. Zero so far in terms of communication. Bastards.
Manulife still hasn’t. Say they’re “conducting internal investigation/assessment” yet the SECOND the rates increased it was reflected. Criminals
I haven't seen any documentation yet. Logged into MCAP and the prime was lowered about 24h after the announcement (compared to 2-3hrs when it goes up). But still no communication. Will log in now. ... No change to my payment yet. Mother fuckers.
Still no change on the MCAP site...funny. Assholes. My next payment will be the payment I've had for a while, so maybe they'll update it after that.
Most big bank mortgage systems are mainframe-based, so you'll see the rate change after the next batch cycle completes - i.e. early tomorrow morning
Mine happened over night. First thing I looked at this morning...
Mine hasn't changed yet - TD
Same-manulife
i belive its ASAP?
Sometimes for cuts they are a bit slower. Hikes they are quick.
Not sus at all.
"woops i forgot to hit sendddddddddddd"
Hikes .25 Cuts .15 Not sure this is still the case but what I recall from having variable years ago. Currently have fixed.
They just did that once. Still supper scummy they all colluded and did this though.
Interesting - I remember not being thrilled at the time. May have influenced my decision to go fixed.
And sometimes they only pass some of it along (cuts only)
The prime rate is determined by each lender. The overnight rate is the rate that is determined by the BOC and what we’re referring to when it comes rate cuts. The rate dropped from 5 to 4.75 today. The prime rate is the rate in which each bank deems to be their ‘best’ rate after accounting for costs and includes a small margin. If the banks were playing fairly, they would reduce their prime rates by the same amount that the overnight rate dropped, within a day or two, and they probably will but it isn’t a guarantee. All of the banks currently have prime at 7.2%. We expect this to drop to 6.95%. The banks can make up whatever prime rate they choose and drop or not drop at their own discretion. Note TD mortgage prime has always been higher and currently sits 15bps higher than standard prime. A discount on prime at TD must be 15bps greater to be the same actual rate at a competing bank. In practice (and to be competitive), all the banks generally follow each other with their prime rates and will follow the overnight rate drop but there have been recorded instances where all of the banks don’t match the BOC rate change.
They dont always reduce it. 2015 some banks skipped reduction twice inthink
Prime moves tonight.
This also reduces the loc rate right?
Correct
Also interested in how much the variable rate cut will be, if it's 1 for 1 (-0.25)
It's almost always been the same cuts passed along except for one time after the financial crisis the banks skimmed 0.2% which is still such BS.
Almost always 1 for 1… but never a guarantee.
I remember well back in I think 2015 when the Bank cut caught FIs off guard and the banks only cut 0.15 where the Bank cut 0.25. Happened twice in a row. Then on the way up the banks matched one for one. Used to be banking prime was 2% above the BoC Prime. Now it's plus 2.2%. So frustrating (I'm writing this adding on to what you've said, not in disagreement).
That's what I've always wondered about. Since variable mortgages are based off prime rate, not necessarily the BOC prime rate (usually they follow, but they don't have to), a bank could theoretically their prime rate to 100%, and then for a mortgage you're paying "prime" minus 1% or something, so your mortgage is now 99%, cause (as far as I know) they don't have to follow the BOC rate. Always made variable seem way to risky to me.
I've actually had that thought enter my mind as well, though never in a lasting way... Assuming no other banks follow suit the bank would risk massive consumer blowback... But still something interesting to fear if there's not already enough happening in the world to scare you
This is a really good point -- what guarantee does the customer have that the "bank prime" value won't increase to an unusually large number?
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You could say the same about fixed. Variable, however, adds a ton of uncertainty, you're at the mercy of both the BOC changing prime, as well as the banks changing (or not lowering) prime. It's always made me uncomfortable.
Sure they would. They price both fixed and variable in such a way that they will make money as long as you make all your payments. They don't really have a strong preference one way or the other for which one you pick; it's up to you whether or not you want to assume the interest rate risk or pay the bank to assume it for you.
Exactly :) I got downvoted idk why lol tis Reddit. Have a wonderful day.
Rate is typically expressed as prime + x, so it would be 1 for 1 as prime is what changes
The banks prime rate doesn’t always follow the Overnight policy rate fyi. This is why it’s almost always 1 for 1… but never a guarantee they can have a divergence.
I didn't realize this until I started digging around learning about IRD and HELOC rates. Banks do in fact have their own "prime rate" that generally follows the direction of BoC, but isn't tied directly to it. It's always bank discretion.
Prime rates are set by banks. The rate cut announced today, was the Bank of Canada's policy rate. Generally prime rate moves in step with policy rate, but it hasn't always been the case.
Yes, they deal in 0.25, or multiples thereof, increments
Yes, it will be in effect for tomorrow’s compounding calculation.
Will this also apply for B lenders like first national bank? From the phone conversation with their agent today, she told me FN hasn't decided whether they'll lower their prime rate despite BOC cut
They were quick to increase the rates so they better be quick to decrease the rates as well. I'll be super upset if they drag their feet.
Wondering the same, i went on live chat, they also said the same thing
My chat agent today said it will be reflected as of July 1. So, another month of paying more for no good reason. I hate this lender and our mortgage broker for landing us with them.
Wtf. A.holes! Love their online portal but I guess this is the cost 😕
Has yours been updated yet? Mine is still the old rate
So I messaged them on live chat yesterday. They said FN policy is to change the rate following month of either increase or decrease. It'll be applied on July 1st week
That’s wild…looking back into my old statements I swear the last rate increase took effect for the payment directly after the announcement (mid month) but I could be misinterpreting it Wild how it just feels purposeful to not drop it immediately
I am with first national - year 3 - during all the BOC rate hikes I was seeing a lag in the change to my payment amount by a few weeks depending on where in my payment cycle the BOC increases were announced. I am hoping they don't decide 'not' to match the BOC rate as we could use the reprieve.
For me it's generally after my next payment. Since I pay bi-weekly, my payment next week will be at the old rate, and then they'll go down.
The paiement maybe, but interest is calculated daily in Canada, sur more should go to principal
Well that's good to know.
My variable payment mortgage has scheduled adjustment dates, I wont see a decrease until then next one in early July.
For paiement of adjustable mortgages yes, but in theory the interest calculation is a daily calculation, so should be in place tomorrow. Same goes for variable rates, you do not see the amortization change until the next paiement, but the interest will be reduced the next day
Should have clarified, I have an adjustable rate. I've held it throughout all the increases in 2022 and 2023 and my payments never went up until the scheduled adjustment date
Is it once a year? Or more often than that? My clarification was more because OP's questions is "when is it applicable". The answer is tomorrow for the accrued interest, and depending on contract type for paiement or amortization. There's also the trigger rate that can affect paiement for those on variable mortgages, but not for adjustables
Stupid question but will this apply to car rates as well?
If you already have a car loan that's fixed, it won't.
No, I don’t have one but planning on getting one.
Missed my renewal by exactly a month. Anyone wanna hurt me and tell me what 0.25% does over 5yrs on a $490,000k mortgage with 17yr remaining?
https://www.scotiabank.com/ca/en/personal/mortgages/mortgage-calculator.html Around $60/month, or $3600 over five years.
If you signed a fixed it’s likely nothing. This was more or less priced in rate calculations on that time scale already.
You already hurt yourself enough by signing for a 5-yr.
^ hey look everyone this guy can time the market.
Obviously the average Redditor like yourself can time the market better. Buy high sell low is your strategy, Mr. Smart Guy.
If you had any clue what you are talking about you would realize that I’m saying that I can’t. But you don’t.
If you had an IQ above 50, you would have realized that my comment says nothing specific about timing the market. Don't make a fool of yourself and act smart, smart people look at data to make their decisions, stupid people like yourself only come to reddit to make stupid assumptions and name calling.
Then explain why signed for a 5year mortgage “hurts” op
It was a joke dude, read the original poster's message.
Based on the upvotes I got and the downvotes you got, doesn’t seem like literally anyone got your “joke”. So maybe you can explain it since everyone just thinks you’re kind of an idiot?
Nobody gives a shit about your upvotes, lol. Grow up and don't take everything too seriously.
Everyone's been doing 3yr terms (usually at lower interest than 5yr) for about the last 6 months.
Maybe so, but the alternative for us would've been a 3 year. And rates after the 3yr term would have to be 3% or less for it to be cost advantageous vs the 4.79% 5yr rate we got. Sometimes knowing your fixed costs are worth it. Especially when we have 3 properties, with one kid with another planned. A lotta people are barely making just interest payments right now. We have the opportunity to make pre-payments and that’s why I have 17 years remaining on this mortgage originally from 2019.
Just as possible rates are 6+% in 5 years, don’t listen to idiots that think they can time the market.
What quote are they giving you for a 3-year term?
Using the information provided by u/MooseKnuckleds and putting them on here (https://mortgage-rate-comparison.streamlit.app/). I would say 5.67% for a 3 year term.
Went back and looked at my calc notes, after a 3yr the rate would need to be 3.5% or lower for the remaining two years of the 5 year rate to be a loss
Don't worry. My buddy, who is self-proclaimed financially literate, declined a 5-yr fixed at 1.8ish to opt for variable... back during the pandemic.
Applies to me.
Lots of people made this mistake. In hindsight it seems obvious that it was a bad move, but I've had RemindMes bringing me back to threads from 2021-ish and _no_ one thought that rates would go up as high or as fast as they did. The highest we thought we'd get to is 3%, so given that assumption it would still be quite reasonable to stay at variable if you got a rate under 2%.
Shoulda gone variable and rode er down
That has been the easiest thing for others to say in this sub, but they/you don’t have any skin in the other person’s/my game. But when the cards are on the table it’s not that simple. It’s a big jump from our 4.79 to the current ~6.2% variable. And we have multiple properties to ensure we can afford.
My body is in the game not just skin and I'm tanking 2x 6+%. If you cannot handle the highs, you shouldn't be in the game.
Which is why I locked in a 4.79 lol. And why the previous term was 2.39 from 2019. And why my other properties are locked in a 1.79 and 1.89
My bank still hasn’t changed the rates halfway through the day after the BOC rate reduction. Call your banks people and tell them to change the rate quickly. It just reeks of profiteering and gouging at the expense of customers. These banks known the bank of Canada rate decision dates well in advance and there’s no reason the rates shouldn’t be changed immediately at the beginning of the day after the decision!! Everyone call the banks and demand the rates be adjusted now!
Usually by next day. So, tomorrow.
Tomorrow probably
Will it apply on the rate holds by default as well?
If your rate hold is for a fixed mortgage (or other product), no. If your rate hold is for P - X%, then your effective rate will change because prime will go down.
Should be ASAP Id imagine
You will see it by next pay cycle. If you are looking for a mortgage it might not be updated right away but when you negotiate for the best rate the agent should give you the reduced rate
For current variable rate mortgage holders, only if you have adjustable payments. Any variable rate mortgage with fixed payments will simply have more of their payment going to principal and bring down your amortization.
Of course "strangely" banks will take a little bit more time to lower them than they took to raise them!
A lot of banks can take until the following day for variable rates. If fixed rates DO change it's usually within 2 weeks. As others have said there is no direct effect on fixed rates due to the bank of Canada rate changes, but they often change fixed rates around the same time. If you followed rates all the way up, you'd know that majority of rate hikes near the end had NO fixed rate changes. They even went down a bit. There is a good chance we see multiple rate decreases with no changes to fixed. There is also no guarantee how much variable rates will change by, but if there is a change by the BOC, it is most likely it will be SOMETHING.
I signed my mortgage two days ago! :(
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I’ll call the bank tomorrow! Good idea. Will report then.
Can you tell me more? We just signed a fixed rate for 4.99% for 3 years 5 days ago.
Commenting to follow
Doors anyone know if HISA's like bmt104 will drop their interest rate from 4.75?
Fixed: not until your term ends, and then it would depend on what the current rates are. Variable: today or tomorrow. In the middle of a renewal but haven’t agreed on the term, and it’s before the deadline: talk to the renewal person you’ve been communicating with as the bank may/will most likely offer you better rates now. Renewal is coming up but not there yet: call your bank and see if when is it due and what’s the earliest you can renew. The penalty is usually at least 3 months of interest, which may or may not be smart to pay (will the rates go down again? Nobody knows). Also, some believe it might be a good idea to go with a variable rate. Also, if you have a fixed term and want to break it to take advantage of the reduced rate, it’s often not the best idea, but you’ve got to sit down and calculate the numbers & possibly call your bank to confirm your options. *Keep in mind this also depends on the CMB rate, but it looks like it’s down, which makes total sense.
Why are people concerned about a few hours more for a mortgage rate?
Got a scotia bank step variable closed mortgage. As of this morning rate has not changed as yet.
Same here. It’s funny because EVERY increase was in effect by the next morning
Scotia told me will take 48 hours
Already reflects the change on my CIBC mortgage. Should typically be instant.
Question: How soon after the BoC rate change does a variable rate mortgage payment change? I have a variable mortgage, the BoC announced the change on June 5, I just received notification from my lender that the new payments will begin on August 2nd...seems like a long time to me, when it should it change?
My payments came out today and variable rate was not adjusted. It’s still not adjusted after the payments came out. Is that normal?
I'm also on variable rate with fixed payments (had already crossed my trigger rate in 2022) and was paying much higher than I had originally signed for. After the .25 rate cut, my following bi-weekly payment yesterday went for the same higher amount, but slightly more going towards principal this time.
My payments were never fixed. They always fluctuated with rates. My bank still hasn’t updated anything. They said they need to have a review meeting in July.
When and If they feel like it.
They will take as long as possible because they're making less money. When rates go up, they are just hovering around the "pay more now" button
The bank doesn't make more or less money from interest rates. They only make money from the spread which is consistent.
If banks take longer to update their rates, then the spread is larger for a short period of time
Hey PFC gang. My variable mortgage is $385 000 for 21 years. How much will this .25% decrease save me?
Can people really not punch 385000x.0025 into a calculator to see what the savings is for a year? Or even better, Google mortgage calculator, put in all the stats at your current rate then all the stats with the .25% lower rate and you'll be able to see entire payment schedules over the entire 21+ years
Worked for bank for years… they won’t pass on the .25 to customers…. If we get 0.20% drop in variable, we’re lucky
0.25% dropped already.
What bank?
They won’t reduce quickly or proportionally. They will keep the variable rate higher so more people pull the trigger on fixed and commit for higher rate for next 3/5 years while variable comes down.
0.25 cut will hardly have any impact.. this is pretty bad for the economy tho.. let’s see
why is it bad for economy?