But what does that really mean? How is this going to impact me? Will my mortgage rate change?
It means that lenders will typically also lower their PRIME rate.
Will lenders lower their prime rate the full 50 BPS (half a percent)?
Historically no - lenders haven't passed that full savings on to the clients. As of March 5th, our lenders have not yet adjusted their PRIME rate. We anticipate today to begin receiving emails notifying us of rate drops on PRIME rate.
What does that mean?
It means that if you have a variable rate mortgage your rate (and monthly payment) is going to go down. On average it will equal about $27 for every $100,000 of mortgage money that you have.
What if I have a fixed rate?
Right now, this does not impact you. Your rate is the same. This is PRIME rate only.
Source: GLM Mortgage Group | Dominion Lending Centres
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