The Bank of Canada announced on June 5, 2024 that it would be cutting its overnight lending rate to 4.75%. This is the first time the BoC has adjusted its key interest rate since July 2023, when it reached 5%. The BoC's benchmark rate serves as a reference point for the interest rates that financial institutions charge to their customers on products such as mortgages and loans. As a result, homeowners on a variable rate mortgage will see more of their money going towards the principal amount on their mortgage and less towards interest. Homeowners looking to refinance their mortgages may also see lower rates. The next scheduled rate announcement from the BoC is scheduled for July 24.
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