The Bank of Canada lowered it’s benchmark rate

As the Bank of Canada lowered it’s benchmark rate for the first time in 4 years what should your do with your upcoming renewal. There are a lot of pros and cons in making this decision. The current trend seems to be 3 yr fixed term with the expectation rates will continue to fall. Variable rates are always in discussion but with the current spread over 1% between fixed and variable rates this would take some time to see savings. However, pre payment penalties on fixed products can handcuff the client if rates to drop. Yes, a complex discussion and my best advice is to give me a call well before the renewal date to develop a plan that works for youy.