Following the Bank of Canada’s two consecutive interest rate cuts with potentially more to come by the end of the year, variable-rate mortgages are starting to pique homeowners interest again, mortgage brokers say.

Variable-rate mortgages are tied to rate changes by the Bank of Canada, which on July 24 dropped down by a 0.25 percentage point to 4.5 per cent. Meanwhile, most fixed-rate mortgages are tied to the five-year bond yield, meaning when the bond yield goes up so does the interest on fixed-rate mortgages — and when inflation rises, bond yields tend to follow suit. Bond yields have dipped recently, resulting in lower fixed-rate mortgages.