{"id":1936,"date":"2024-06-07T18:36:36","date_gmt":"2024-06-07T18:36:36","guid":{"rendered":"https:\/\/effortlessmortgage.ca\/blogs\/?p=1936"},"modified":"2024-06-07T19:29:25","modified_gmt":"2024-06-07T19:29:25","slug":"june-2024-rate-cut-how-the-0-25-drop-impacts-canadian-homeowners","status":"publish","type":"post","link":"https:\/\/effortlessmortgage.ca\/blogs\/june-2024-rate-cut-how-the-0-25-drop-impacts-canadian-homeowners\/","title":{"rendered":"June 2024 Rate Cut: How the 0.25% Drop Impacts Canadian Homeowners"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1936\" class=\"elementor elementor-1936\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-46528b68 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"46528b68\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6f49500f\" data-id=\"6f49500f\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-17424152 elementor-widget elementor-widget-text-editor\" data-id=\"17424152\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"content\" tabindex=\"0\"><div class=\"ac-container ac-adaptiveCard\"><div class=\"ac-textBlock\"><div class=\"content\" tabindex=\"0\"><div class=\"ac-container ac-adaptiveCard\"><div class=\"ac-textBlock\"><p>On June 5, 2024, the Bank of Canada made a pivotal decision to cut its key interest rate by 25 basis points, bringing it down from 5.00% to 4.75%.<\/p><p>A 0.25% rate decrease doesn\u2019t seem to be much on its own &#8211; for every $500,000 mortgage, your mortgage payment is approximately $70 lower. A small change like this is not enough to turn the tide of the housing market, however, it\u2019s a much welcomed start of (hopefully) a series of rate cuts in the coming months.<\/p><\/div><\/div><\/div><\/div><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cb3ce0f elementor-widget elementor-widget-heading\" data-id=\"cb3ce0f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Do Economists Say?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-951710d elementor-widget elementor-widget-text-editor\" data-id=\"951710d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Although the Bank of Canada remains cautious about future rate cuts, many economists anticipate a total reduction of 0.75% this year, bringing the overnight rate closer to 4.00%. This reduction could have a significant impact on the housing market by:<\/p><ul><li>Increasing borrowers&#8217; purchasing power by 10% or more, depending on the rate or term of their mortgage.<\/li><li>Stimulating more home buying activity.<\/li><li>Potentially leading to a more active housing market.<\/li><\/ul><p>The results? A more dynamic and accessible housing market for all.\u00a0<\/p><p><strong>T<\/strong><b>he rate cut affects existing, new, and renewal mortgage holders differently. Let&#8217;s break it down:<\/b><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2b6cd96 elementor-widget elementor-widget-heading\" data-id=\"2b6cd96\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">For Upcoming Mortgage Renewals <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8dc411b elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"8dc411b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>This group will benefit the most from the rate cut.\u00a0<\/p><p>If you were in a lower mortgage rate you got from 3 to 4 years ago and now you are anxious about an upcoming renewal this year, the news of rate cut is a saving grace for you. It will mean a much smaller rate shock when you get your renewal offer.\u00a0<\/p><p><i>Lenders are lowering their rates to compete for renewal clients. It\u2019s a great time to let an experienced mortgage broker shop the best deal for you.<\/i><\/p><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-04fb43b elementor-widget elementor-widget-heading\" data-id=\"04fb43b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">For Variable Rate Mortgage Holders <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d12de10 elementor-widget elementor-widget-text-editor\" data-id=\"d12de10\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>If your variable rate mortgage is a fixed payment product, your monthly payment will not change. However, your interest will be lowered by 25bps immediately, and more of your monthly interest will go to principal of the mortgage rather than interest. Your monthly payment will reset at renewal which will bring down your cash flow as well.<\/p><p>*<i>* If your variable rate mortgage is a floating payment product, you will likely see your monthly payment reduce, i.e. better cash flow, starting the next payment cycle. **<\/i><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d523bfb elementor-widget elementor-widget-heading\" data-id=\"d523bfb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span data-token-index=\"0\" class=\"notion-enable-hover\">For Fixed Rate Mortgage Holders<\/span> <!-- notionvc: 8e004c89-b1de-46ab-a6a0-00a6a77dd45f --><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fb5656c elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"fb5656c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>If you are in a fixed rate mortgage, this will not have any impact to your mortgage until you reach your time of maturity. However, the positive side effect of a rate reduction is that your home value will gradually increase &#8211; your home will likely be worth more in the near future.<\/p><p><i>If you were looking to refinance your mortgage, you will potentially have more home equity available for refinancing in 6 to 12 months.<\/i><\/p><p>\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f569299 elementor-widget elementor-widget-heading\" data-id=\"f569299\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span data-token-index=\"0\">For Home Buyers<\/span><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-54681cb elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"54681cb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Given the tight supply-demand condition in the Canadian housing market and a high ownership rate (70% of Canadians are homeowners), housing prices are forecasted to rise continuously in the next 5 to 10 years.\u00a0<\/p><p>Given the June rate cut and another potential rate cut in July, it is expected to bring increased home buying activity.\u00a0\u00a0<\/p><p>An economist at a Toronto housing conference noted, \u201ca lot of the home buyers searching for homes in this fall market will wish they had bought in the spring.\u201d<\/p><p><span style=\"color: var( --e-global-color-text ); font-family: var( --e-global-typography-text-font-family ), Sans-serif; font-weight: var( --e-global-typography-text-font-weight );\"><em>R<\/em><i>eminder, it\u2019s important to know how much you are able to qualify for before you start your search. Use our <a href=\"https:\/\/effortlessmortgage.ca\/blogs\/download-our-mortgage-pre-approval-checklist\/\" target=\"_blank\" rel=\"noopener\">Mortgage Pre-Approval Checklist<\/a> to guide you.<\/i><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d468438 elementor-widget elementor-widget-image\" data-id=\"d468438\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/effortlessmortgage.ca\/blogs\/download-our-mortgage-pre-approval-checklist\/\" target=\"_blank\">\n\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/effortlessmortgage.ca\/blogs\/wp-content\/uploads\/2024\/01\/mortgage-pre-approval-checklist-1024x576.jpg\" class=\"attachment-large size-large wp-image-1756\" alt=\"\" srcset=\"https:\/\/effortlessmortgage.ca\/blogs\/wp-content\/uploads\/2024\/01\/mortgage-pre-approval-checklist-1024x576.jpg 1024w, https:\/\/effortlessmortgage.ca\/blogs\/wp-content\/uploads\/2024\/01\/mortgage-pre-approval-checklist-300x169.jpg 300w, https:\/\/effortlessmortgage.ca\/blogs\/wp-content\/uploads\/2024\/01\/mortgage-pre-approval-checklist-768x432.jpg 768w, https:\/\/effortlessmortgage.ca\/blogs\/wp-content\/uploads\/2024\/01\/mortgage-pre-approval-checklist-1536x864.jpg 1536w, https:\/\/effortlessmortgage.ca\/blogs\/wp-content\/uploads\/2024\/01\/mortgage-pre-approval-checklist-2048x1152.jpg 2048w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a6e4dc4 elementor-widget elementor-widget-heading\" data-id=\"a6e4dc4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Lowest Rates Now<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9b006d3 elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"9b006d3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><b>Here are our lowest rates now (subject to qualification):<\/b><\/p><p><!-- notionvc: 6af8645e-dd1a-4b76-acaf-4fb573526ddf --><\/p><ul><li>Lowest 6 months fixed mortgage rates for Insured Mortgage (home purchase, &lt; 20% down payment, 680+ credit, and $1,000,000 purchase price): 4.34%<\/li><li>Lowest 5 year fixed mortgage rates for Insured Mortgage: 4.59%<\/li><li>Lowest conventional 3 year mortgage rates (20% down payment): 5.29%<\/li><li>Lowest Alternative Lender \/ B Lender Mortgage Rates 3 year rates: 5.95% \/ 6.24%<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d026d25 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"d026d25\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-407d115 elementor-widget elementor-widget-heading\" data-id=\"407d115\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">In Conclusion:<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-673863b elementor-widget__width-initial elementor-widget elementor-widget-text-editor\" data-id=\"673863b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>With the latest rate cut lowering it from 5.00% to 4.75%, it&#8217;s &#8216;small&#8217; yet a significant change which could mean big savings for mortgage holders and a boost in purchasing power for home buyers.<\/p><p>Whether you&#8217;re renewing, holding a variable or fixed rate mortgage, or planning to buy, this is crucial information you can&#8217;t afford to miss.<\/p><p>Discover how this rate cut affects you and what to expect in the coming months. Stay informed and make the most of these changes! Book a Call with an Effortless Mortgage Advisor today.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f4cd270 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f4cd270\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-53a3e08\" data-id=\"53a3e08\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8602ad3 elementor-widget elementor-widget-image\" data-id=\"8602ad3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/calendly.com\/mortgage-advisors\/quick-chat?month=2022-07\" target=\"_blank\" rel=\"noopener\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"364\" height=\"113\" src=\"https:\/\/effortlessmortgage.ca\/blogs\/wp-content\/uploads\/2021\/07\/Book-a-15-Min-Call.png\" class=\"attachment-full size-full wp-image-806\" alt=\"Book-a-15-Min-Call\" srcset=\"https:\/\/effortlessmortgage.ca\/blogs\/wp-content\/uploads\/2021\/07\/Book-a-15-Min-Call.png 364w, https:\/\/effortlessmortgage.ca\/blogs\/wp-content\/uploads\/2021\/07\/Book-a-15-Min-Call-300x93.png 300w\" sizes=\"(max-width: 364px) 100vw, 364px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f2d87ac elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f2d87ac\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-9643103\" data-id=\"9643103\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0c198e3 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"0c198e3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>On June 5, 2024, the Bank of Canada made a pivotal decision to cut its key interest rate by 25 basis points, bringing it down from 5.00% to 4.75%. A 0.25% rate decrease doesn&rsquo;t seem to be much on its own &ndash; for every $500,000 mortgage, your mortgage payment is approximately $70 lower. A small [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1942,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46,9,43,45,53],"tags":[],"table_tags":[],"class_list":["post-1936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-purchase","category-mortgage-basics","category-mortgage-options","category-mortgage-refinance","category-mortgage-renewal"],"_links":{"self":[{"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/posts\/1936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/comments?post=1936"}],"version-history":[{"count":5,"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/posts\/1936\/revisions"}],"predecessor-version":[{"id":1941,"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/posts\/1936\/revisions\/1941"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/media\/1942"}],"wp:attachment":[{"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/media?parent=1936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/categories?post=1936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/tags?post=1936"},{"taxonomy":"table_tags","embeddable":true,"href":"https:\/\/effortlessmortgage.ca\/blogs\/wp-json\/wp\/v2\/table_tags?post=1936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}