Impact of a Bank of Canada rate cut

An interest rate cut of a quarter of a percentage point would only marginally reduce payments for many borrowers.

*This scenario assumes the best variable-rate mortgage available nationally to homebuyers declines from 5.95 per cent to 5.7 per cent. The rate decline would result in monthly payments that are $96 lower for a buyer putting 10 per cent down on a $703,446 home (the calculations include mandatory mortgage default insurance).
THE GLOBE AND MAIL Source: Data from Equifax Canada, Ratehub.ca, CMHC. Calculations: Ratehub.ca and Globe and Mail.