Interest cut will bring relief to Islanders with variable-rate mortgages, says realtor [Video]

Prince Edward Island homeowners with variable-rate mortgages, as well as people shopping for a home, have cause for celebration after the biggest Bank of Canada rate cut since March 2020. 

Mary Jane Webster, a realtor at ReMax Charlottetown, said Wednesday’s overnight lending rate decrease to 3.75 per cent is a “continued step in the right direction.” She predicted more people will feel like entering the marketplace as it continues to drop.

“It certainly has stalled the market when the interest rates were higher,” Webster said. “So the intent is hopefully to trigger activity.”

Bank of Canada governor Tiff Macklem said Wednesday that further rate cuts can be expected if the lower interest rate helps the economy pick up.

By Wednesday afternoon, TD Bank, Scotiabank, BMO, CIBC, RBC and National Bank had all announced that they had lowered their prime rates by 50 basis points, from 6.45 per cent to 5.95 per cent.

Webster said …