Leah Zlatkin quoted in the Toronto Star: ‘Homeowners with variable-rate mortgages get relief with jumbo Bank of Canada rate cut — and fixed rates are likely to follow’

“The rate cut is good news for current variable-rate mortgage holders,” said Leak Zlatkin, licensed mortgage broker and COO of Mortgage Outlet.

“They’ll see an immediate decrease in their monthly payments, providing some relief amidst the rising cost of living. This also frees up some cash flow, which can be used for other financial goals, like paying down debt or increasing savings.”

Variable-rate mortgages are tied to interest rate changes by the Bank of Canada, moving up or down in step with the central bank.

A decrease of 50 basis points will lower the current prime rate at most lenders from 5.95 per cent to 5.45 per cent, said Zlatkin. The prime rate is the lending rate banks and financial institutions use to set interest rates for loans such as mortgages.