Bank Of Canada Rate Announcement Sept 4 2024 | How It Really Affects Rates?

 

Intro Sean Rampersaud The easiest way to get approved for a mortgage

topic intro

Hook: Wait until the end of this video to get the new absolute lowest variable rate in Canada,

 

On Sept 4 2024 the bank of Canada made another announcement about the key interest rate. “People” are advertizing this rate all wrong, so I wanted to give clarification to anyone thinking about making a post about this.

 

What does the key interest rate mean? The key Interest rate means the same thing as the benchmark rate. The key interest rate in Canada is now 4.25%

 

What is a benchmark rate in Canada? The benchmark rate is the rate lenders use to help qualify someone for a mortgage. The current benchmark rate is now 4.25%

 

What is the benchmark rate? The benchmark rate is now 4.25% Inflation has slowed to 2.5% A Great sign for all Canadians!

 

Is the variable rate now 4.25%? No The variable rate is not 4.25%. Many people get confused about this and many companies are advertising it this way. This is not correct.

 

How does this affect the mortgage rates? This will only affect the variable rate. The variable rates are now as low as 5.35% depending on the bank

 

What is the old rate? The old benchmark rate was 4.5%

 

What is the new rate sept 4 2024? The new benchmark rate is 4.25%

 

The reduction is a 0.25% reduction to the prime rate.

 

Who does this affect when it comes to mortgages? This will only affect those of you that are on a variable rate mortgage.  This will also allow a person to qualify for a larger amount.

 

Do fixed rates get affected? The last 2 times there was a reduction, the fixed rates also went down, however the fixes rates are not directly affected by the reduction. It is spinoff activity or trending activity that makes the fixed rates to go down. Only the variable rate is directly affected.

 

When will fixed rates go down? You can expect the first reductions to the fixed rates by Monday sept 9 2024

 

Can I qualify for a higher amount with the new rate? Yes the new rate will allow people to qualify for a higher amount! Take a look at this graph to compare what you could qualify for.

 

What is the bank prime rate? The bank prime rate is the rate the banks qualify you at. That will be reduced by 0.25%. The new bank prime rate is now 6.45%. Normally thhe variable rate will be prime (bank prime)- a specific amount. for example 1.15% making the variable rate 5.3%

 

What is the new lowest variable rate? The new lowest variable rate is now 5.3%

 

When is the next bank of Canada meeting? The next meeting is Oct 23 2024 (Hopefully they will reduce the rates again!

 

Don’t get caught falsely advertising this! Many people are explaining this wrong and this makes our industry look really bad.

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