Prime to be 2% LOWER in 15 months, Dates of drops, Variable rate wins: Fall 2024

Yes, with the writing on the wall for the coming Prime rate decreases the Variable rate is the way to go.

Variable rates are based on Consumer Prime, which moves the exact same as the Bank of Canada’s “overnight rate.”  The decreases in the overnight rate will be the same for Consumer Prime and they are below.

So Sept 4, 2024, Prime will go from 6.7% to 6.45%

Canadian Consumer Prime – what Variable Rates are based on – will be these rates here.

If your “discount is Prime – 0.95%” then your rate would be this number below – 0.95%. And as you can see, this is way better than the 3-year fixed at  4.84% or the 5- year fixed at 4.69% today.

• September 4, 2024: 6.45%
• October 23, 2024: 6.20%
• December 11, 2024: 5.95%
• January 2025: 5.70%
• March 2025: 5.45%
• April 2025: 5.20%
• June 2025: 4.95%
• September 2025: 4.70%
• October 2025: 4.45%
• December 2025: 4.20%

Article is here: Bank of Canada’s policy interest rate could dip to 2.75% by late 2025:

forecast:: https://dailyhive.com/vancouver/bank-of-canada-policy-interest-rate-forecast-2025-credit-1

Predictions of the article for the rate drops: Credit 1’s Bank of Canada policy interest rate forecast, as updated on August 26, 2024:

• • September 4, 2024: 4.25%
  • October 23, 2024: 4.0%
  • December 11, 2024: 3.75%
  • January 2025: 3.5%
  • March 2025: 3.5%
  • April 2025: 3.25%
  • June 2025: 3.25%
  • September 2025: 3.0%
  • October 2025: 2.75%
  • December 2025: 2.75%