The Bank of Canada (BOC) recently lowered the bank of Canada overnight rate by a quarter of a percent in January. This came as a surprise to everyone and the few people who had variable rate mortgages were rubbing their hands together, looking forward to their payments decreasing. They did decrease but not the same .25%. All of the major institutions colluded and decided to make even more money off of the backs of Canadians and only lowered their prime rates by .15%.
This begs the question, Is a variable rate mortgage really worth the risk if lenders aren’t going to follow the Bank of Canada rates cuts? Read the below article from the globe mail on the this controversial topic.