Hey Reader,

The announcement that moves markets.

Eight times a year, the Bank of Canada announces its overnight lending rate. Financial news goes wild. Your social media fills up with takes. But what does it actually mean for your mortgage payment next month?

The short answer: it depends on what type of mortgage you have.

Variable rate mortgages: Direct impact

If you have a variable rate mortgage, your rate is directly tied to the prime rate — which typically moves in lockstep with the Bank of Canada's overnight rate. A 0.25% cut means your rate drops almost immediately. A hike? Same thing in reverse.

Variable rate holders feel rate changes in their wallet within weeks.

Fixed rate mortgages: Indirect impact

Fixed rates are driven by Government of Canada bond yields, not the overnight rate. These can move BEFORE the Bank of Canada acts, based on what bond markets expect to happen. This is why fixed rates sometimes rise even when the Bank of Canada hasn't moved yet.

What does this mean for buyers night Now?

The rate environment shapes what you can afford and which mortgage type makes sense. In a falling rate environment, variable rates can be very attractive. In a rising or uncertain environment, the stability of a fixed rate has real value.

The 'best' rate isn't always the lowest number, it's the right product for YOUR situation and risk tolerance.

This is exactly the kind of analysis I do for every client. Not just 'what's the lowest rate today' but 'what will serve you best over the life of your mortgage.'

Not sure if variable or fixed is right for you? I'll break it down, no strings attached.

Reply to this email or call/text anytime, I'm always happy to chat.

Have a great day,

Abdoul Traore | Mortgage Agent Level 1 | 416.315.5910 | abdoul@traoremortgage.com | www.traoremortgage.com

Mission35 Mortgages Lic. 12844