BREAKING Bank of Canada cuts again - to 0.25% - March 27

[370Z]

What happens if there's a crazy devaluation of the Canadian dollar due to an even more astronomical level of debt, then they'd have no choice but to raise interest rates no?

[sabad66]

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Seems like a simple decision. Rates ain't going anywhere for a long time, the economy is fucked and isn't even at the bottom yet. A full percent savings is going to pay far more on your principal in the next 5 years than being locked in. And even if they do something insane like raise rates and further try to fuck the economy, it's not going to be a full a percent jump. Even with a 0.5% increase on your variable, you're way ahead of the game compared being locked in.

Yup, pretty much went with that exact thought process after thinking about it more. I sent in the papers last week for variable, no regrets.

This was my first renewal and I’m more surprised as to how easy the process was. For some reason I thought I would have had to requalify and do a full application again. Instead it was 3 signatures, scan and email, then done. New (lower) payment starts next month!

[Chester]

I'm also on variable for 2 more years.

[arcticcat522]

I'm variable for 2 more years at the rental as well 1.45 currently. Just before all the cuts I went fixed on the primary, 2.59, so shit. But least it's a consistent amount. Still lower than the previous rate

[Misterman]

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I'm variable for 2 more years at the rental as well 1.45 currently. Just before all the cuts I went fixed on the primary, 2.59, so shit. But least it's a consistent amount. Still lower than the previous rate

I was in the same boat. My variable had jumped to 3.6%, and the locked in rate was 2.39%. That was an obvious foreshadowing that the bank expected some interest rate drops, and they wanted everyone switching to fixed before the variable rates cratered. But I had no idea how long it would be before a drop came, and my renewal was up anyway, so I had to lock it in.

[revelations]

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What happens if there's a crazy devaluation of the Canadian dollar due to an even more astronomical level of debt, then they'd have no choice but to raise interest rates no?

Thats what common reason would indicate, but apparently there is nothing reasonable for what is about to happen.

The situation the world economy is in, is completely unprecedented and could go in so many directions (as a collective).

Volatility is the best answer right now.

[tirebob]

My variable started at 1.99 and was just at 2.45 and is now down to 1.75. Not complaining at all

[arcticcat522]

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I was in the same boat. My variable had jumped to 3.6%, and the locked in rate was 2.39%. That was an obvious foreshadowing that the bank expected some interest rate drops, and they wanted everyone switching to fixed before the variable rates cratered. But I had no idea how long it would be before a drop came, and my renewal was up anyway, so I had to lock it in.

I was like, "no way they'll drop more than .25. Definitely not more then a couple times" .....idiot me

[ExtraSlow]

Timmy has me set up with prime minus 1.0, (currently 1.45%) set to start in May for 5 years. I'm pretty comfortable with it, as I think it'll take decades before we can get back to what used to be called "normal" central bank prime rates.

[dirtsniffer]

Fixed at 1.45?

[ExtraSlow]

Nah brah. Variable at prime minus 1.0%

[dirtsniffer]

Hahah not sure where I got the fixed part from. I had a few drink last night!

It's good you still got prime -1. I heard that prime rates are closer to prime now. I need to renew in August so hopefully I can lock in a good rate soon.

[ZenOps]

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