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After the announcement, mortgage brokers surveyed by the Star reported that they are receiving more inquiries than usual for variable rate mortgages after years of consecutive rate hikes made many Canadians risk-averse.

Historically, variable rates have outperformed fixed rates, but are riskier should the Bank of Canada hike rates again.Ìý

“É«É«À²owners and even those looking to enter the market are starting to show more interest in a variable rate mortgage product, especially with speculation that there will be further cuts by the end of the year,” saidÌýDaniel Vyner, broker of É«É«À²-based boutique mortgage firm DV Capital.

Rates fell 1.25 per cent from five per cent since the Bank of Canada started cutting in June. For every 25-basis point decrease, variable-rate mortgage holders can expect to pay approximately $15 less per $100,000 of mortgage, according to an analysis by rate comparison websiteÌýRatesdotca.Ìý

And despite variable rate mortgages currently being more expensive than fixed, the anticipation of further cuts is enough to steer many Canadians to variable rate loans, Vyner said, especially since they have the option to switch to a fixed rate with their lenders at no cost.

Based on Vyner’s calculations comparing three-year fixed and variable mortgages, fixed rates outperform variable by 60 basis points for insured products and 80 basis points for conventional products on average.Ìý

Another mortgage expert contends that paying a little more for a variable mortgage now while the housing market is quiet might make more sense than waiting for more rate cuts.

“How much more would your mortgage cost if the next cut ignites the market and the home you want is the target of a bidding war?” Clay Jarvis,Ìýreal estate expert with personal finance company NerdWallet, wrote in an analysis.Ìý

Mortgage broker Ron Butler estimated that out of 100 calls his brokerage received since Wednesday, 30 were inquiries about variable rate mortgages. “It’s an absolute sentiment changer on the future of variable rates,” he said.Ìý

Recently, his general advice to borrowers has been to go for variable rate, and wait and see until rates seem to have reached a bottom, which will likely happen next spring.

“You’ve got to watch it carefully. It’s a little bit of work for the consumerÌý— for the borrowerÌý— but they’ve got to do it.”Ìý

When you suspect interest rates have hit bottom, said Butler,Ìýswitch to a five-year fixed mortgage. The same strategy applies to homeowners renewing their mortgages in the next four months or so, he added.Ìý