On March 27th 2020, the Bank of Canada made their second emergency inter-meeting rate cut. The key lending rate has now fallen from 1.75% at the start of the month to its current rate of 0.25%.
Following the Bank of Canada’s rate cut, many lenders have dropped their prime rates another 50 basis points to 2.45%.
However, mortgage lenders have been raising rates due to liquidity concerns and heightened credit risk.
The benchmark qualifying rate used to qualify borrowers under the stress test has also been reduced from 5.19% to 5.04% to make it a little bit easier for those to qualify.
If you are wondering how these changes may affect you, contact me today and let’s have a conversation!
Tatum Neufeld, BComm
Mortgage Broker • Mortgage Tailors