The Bank of Canada has reduced the overnight lending rate by 25 basis points to 3%, benefiting homeowners with variable-rate mortgages through lower monthly payments. While variable rates may offer immediate relief, fixed rates, influenced by bond yields, have also seen a downward trend. Predicting future movements is challenging, and borrowers should consider their financial situation and risk tolerance. A hybrid mortgage could balance stability and flexibility. Ultimately, the choice between fixed and variable rates depends on individual circumstances and market conditions.
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