Sean Rankin Mortgage Agent level 2

How Much Ottawa Homeowners Will Save Following the Latest Interest Rate Drop

Last week’s 25 basis point interest rate cut by the Bank of Canada (BOC) has brought welcome news for homeowners in Ottawa and across Canada. This reduction, which lowers the interest rate to 4.75%, is the first cut since March 2020, following a series of rate hikes between March 2022 and July 2023. At TopRankinMortgages, we’re excited to share how this change can benefit you.

Significant Savings on Monthly Mortgage Payments

According to Zoocasa, homeowners in Ottawa with five-year variable mortgages are set to see substantial savings. For a home valued at $643,000, monthly mortgage payments will decrease by approximately $286, adding up to an annual saving of $3,432. These savings are a direct result of the recent interest rate cut, making homeownership more affordable and manageable.

Impact Across Major Cities

The impact of this interest rate cut extends beyond Ottawa. In major cities such as Toronto and Calgary, monthly savings on mortgage payments range from $55 to $155, leading to annual savings of up to $1,860. Even in Regina, the most affordable city according to Zoocasa, homeowners will benefit from monthly savings of $75.60, totaling $907 annually.

Opportunities for Homebuyers

With further rate cuts potentially on the horizon, homeowners could see even greater savings or have the opportunity to pay down their mortgages faster. Zoocasa’s affordability report highlights that lower lending rates are likely to stimulate more sales activity in the real estate market. As prospective buyers take advantage of the current conditions, there is a potential for increased competition and rising home prices.

Carrie Lysenko, CEO of Zoocasa, advises, “Now is an excellent time to get off the sidelines, explore your options, and take advantage of the greater negotiating power you have with the current surge in inventory.” At TopRankinMortgages, we agree that acting now could be beneficial before competition intensifies.

The Bigger Picture: Interest Rates and Inflation

The BOC’s decision to cut interest rates comes after maintaining them at five per cent since July 2023. With the inflation rate at 2.7% in April, close to the BOC’s target of 2%, the environment is now favorable for borrowers. Variable mortgage rates, which have been lower than fixed rates for most of 2021 and early 2022, are becoming increasingly popular. Currently, variable-rate mortgages account for about one-third of total outstanding mortgage debt, up from 20% at the end of 2019.

James Laird, Co-CEO of, explains that we are now in the fourth phase of the pandemic rate policy: moving towards a less restrictive rate environment. This phase follows the initial aggressive rate drops, dramatic increases to combat inflation, and a period of elevated rates to stabilize the economy.

What This Means for You

At TopRankinMortgages, we believe these changes present a fantastic opportunity for both current homeowners and potential buyers. With interest rates lowered, now is an ideal time to review your mortgage options and potentially refinance to take advantage of the savings. For those looking to enter the housing market, the current conditions provide a window of opportunity to secure favorable mortgage rates and negotiate better terms.

If you have any questions or need personalized advice on how to make the most of the recent interest rate changes, our team at TopRankinMortgages is here to help. Contact us today to explore your mortgage options and take the first step towards maximizing your savings.

Feel free to reach out to us for a consultation or visit our website for more information on how we can assist you in navigating the evolving mortgage landscape.