Should you choose a variable mortgage rate in 2024?

The Bank of Canada has said interest rates are high enough now . So, the wait is on for prime rates to start their drop and variable mortgage rates right along with them.

The thing is, many homeowners still have the jitters from enduring the fastest variable-rate rise in over 20 years. How fast might variable rates fall? Some economists and experts, like True North Mortgage CEO Dan Eisner, predict prime rates might fall 1.5% by year-end and go at least another 0.5% lower the following year.If we hit a recession, variable rates may decrease faster and further. If we rack up higher inflation, however, the risk is that the decline rate may be impeded or halted for a time.

Fixed rates have come down from their October 2023 peak, which may help you better handle locking into a fixed rate, choosing from your best term rates available.

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