With another interest rate cut on Wednesday, borrowers may soon be able to get mortgages with rates in the 3-per-cent range.

Mortgages rates below 4 per cent are set to become mainstream as interest rates drop, breaking a psychological barrier for many prospective homebuyers and compelling them to leap into the market.

With the Bank of Canada cutting its benchmark interest rate Wednesday to 2.5 per cent from 2.75 per cent, lenders are expected to offer mortgages that could soon be in the 3-per-cent range instead of hovering around 4 per cent.

Although the rate drop would make home loans only slightly cheaper, mortgage rates that start with a three are seen as a psychological turning point for would-be buyers.

“Today’s decision will mean pretty much everyone is getting 3-point-somethi

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