Interest rate cut spells good news for variable-rate mortgage holders, experts say

Real estate experts indicate that the Bank of Canada's third consecutive interest rate cut is positive for those with variable-rate mortgages, but it may take time for lower borrowing costs to significantly impact sales. While the key lending rate is now 4.25%, many potential homebuyers find mortgage rates still unaffordable. Experts suggest that even a full percentage point drop won't greatly enhance buying power due to high home prices. Anticipation of further rate cuts may keep buyers on the sidelines.