A rate cut by the Bank of Canada could be good news for anyone about to secure a mortgage or take out a loan, despite the chaos in the markets this week.

It's one silver lining to the black cloud of a U.S. recession that could be on the horizon.

That's what gave young condo buyer Tara King Brown the courage to stick with a variable rate mortgage despite the volatility in the market.

"Obviously it's variable, you expect a little fluctuation, whether that's a good or bad thing," she told CTV. "It doesn't make me nervous at this point, no."

The Bank of Canada slashed its prime lending rate by 25 basis points to 4 per cent, pushing the Canadian dollar up in value.

According to mortgage broker Milka Lukacevic, fewer people are willing to risk a variable mortgage even though it comes with a lower interest rate, and even more so after today.

"They typically have to be prepared that the rate may change because it is a bit more volatile than a fixed rate," she said.

The fixed rate right now is 5.99 per cent, she said, which is less attractive.

Vancouver condo king Bob Rennie said he didn't think the rate cut would increase housing prices.

"The lower interest rate just makes it easier for the consumer to get in the market or stay in the market," he said.