Bank of Canada Lowers Key Interest Rate

The Bank of Canada recently reduced its interest rate to 4.50%, resulting in lower mortgage payments for homeowners. In the Greater Toronto Area (GTA), where the average home price is $1,162,167, a 20% down payment leads to a mortgage of $929,733. Previously, with a 6.95% bank’s prime interest rate, the monthly payment was approximately $6,521 for a 25-year amortization period. Now, with the new interest rate of 6.70%, the monthly payment decreases to $6,366, saving homeowners $155 per month, or $1,866 annually. This reduction makes it easier for people to afford homes and manage their finances.