Monday, July 20, 2015

WHAT TO EXPECT FROM YOUR VARIABLE RATE CUT

While the big banks may not be passing down all of the Bank of Canada's recent interest rate cut, most seem to be willing to part with at least 15% of it. So when can you expect to see these savings?

Depending on your lender, your mortgage rate may have already changed-or it will occur on a pre-scheduled variable rate adjustment date (likely next month). Your mortgage document will indicate how rate cuts (and increases) are approached.

Hopefully, you're planning on keeping your mortgage payments the same-or bumping them up-to pay down some additional principle. If you are, you may want to check with your lender to see whether you have to call in to do this. Sometimes they will automatically lower your payment along with the rate change-causing you to miss out on paying off additional principle.

If you have any other questions regarding this interest rate cut-or about your variable rate mortgage in general-please don't hesitate to give me a call. I'd be happy to help!

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