Final 2024 BoC Announcement 🎁🎄| -0.50% Holiday Rate Cut!
BoC (-0.50%) Holiday Rate Cut! 🎄

The odds of a hefty rate cut leading up to this morning's announcement were nearly 90%, and the Bank did not disappoint! Holiday wishes were granted as the overnight rate was cut by another -0.50%, marking -1.75% of easing over the past 6 months!
🎁 Effective tomorrow, Canada's Prime Rate will drop to 5.45% 🎁
However, the Bank’s message (click for the official announcement) struck a more hawkish tone than anticipated. Here’s what stood out:
- Future Cuts: The Bank removed any hints of more immediate cuts, signalling a slower pace going forward—think 25 bps increments or even a pause. Markets now expect just two more cuts by mid-2025.
- GDP Growth: Governor Macklem noted a "softer outlook" for GDP growth, influenced by immigration reductions for 2025. This, along with slack in the labour market, contributed to today’s 50 bps cut instead of 25.
- Housing and Spending: Lower rates are spurring household spending, though the full effect won’t hit until next year. Housing activity is expected to pick up in 2025, but immigration remains a wildcard.
- Inflation Forecast: The Bank expects CPI to hover near its 2% target over the next few years, though uncertainty (insert Trump and tariffs here) clouds that projection.
Upcoming Announcement Odds
- Bank of Canada (Jan 29): 25 bps cut: 56%, No change: 44%
- Federal Reserve (Dec 18): 25 bps cut: 98%, No change: 2%

What does this mean for your Variable Rate Mortgage?
- Your mortgage payment has dropped ~$99 per 100k of mortgage since June!
- Based on OIS market predictions, if you are considering a 3-year fixed rate today, 4.39% (conservatively) or better is required for it to make sense to select fixed over variable over the same term.
On Deck: 2025 Mortgage Opportunities
Starting next week, some exciting mortgage updates could help you expand your buying options:
Lower Monthly Payments with a 30-Year Amortization
For qualified first-time buyers and anyone purchasing new construction, mortgages can now be amortized over 30 years. This means lower monthly payments and increased buying power—making it easier to afford the home that’s right for you.
Higher Purchase Prices with Smaller Down Payments
Homebuyers with less than 20% down will soon have access to properties priced up to $1.5 million. This opens the door to more opportunities, moving beyond condos and into single-family homes. Keep in mind, Mortgage Default Insurance will be required in these scenarios.
Funding for Secondary Suites
Looking to add a rental suite or a laneway home? Two key updates rolling out in January make it easier:
- Refinance Up to 90% of your home’s post-renovation value (up to $2M) with a 30-year amortization option.
- Access the Canada Secondary Suite Loan Program for up to $80,000 (which may increase) at just 2% interest over 15 years to help build or renovate a qualified secondary suite.
We’re expecting more details on these programs and additional housing affordability measures in the upcoming Federal Economic Statement (Dec 16th).
If you’ve been thinking about making a move, now’s the time to explore how these updates could work for you. Let’s start with a quick Pre-Approval to see what’s possible with your budget and today’s rates!





