Bank of Canada Cuts Rates ✂️. What Does It Means for You?

Exciting news for Canadians: the Bank of Canada just lowered the overnight rate by 0.25%, bringing it to 2.25%, and most lenders’ prime rates are now 4.45%.

If you have a variable-rate mortgage, adjustable-rate mortgage, or HELOC, your payments could drop soon. But this move isn’t just about saving a few dollars each month, it’s a sign of where the economy and housing market could be headed next.

Why the Bank Made This Move
Canada’s economy has been under pressure:

• GDP shrank by 1.6% last quarter
• Job growth is softening, especially in trade-sensitive sectors
• Inflation is stabilizing around 2.5%

With exports lagging and employment cooling, the Bank saw a chance to support recovery without risking runaway inflation.

What’s Happening in Real Estate
CREA reports that September 2025 was the strongest September for home sales since 2021, even with a small dip month-over-month. Supply is slowly growing, prices are stabilizing, and more buyers are stepping back in.

Today’s rate cut could give that momentum a boost heading into 2026.

Should You Make a Move?
If you’re:

• In a variable-rate mortgage
• Shopping for a new home
• Up for renewal or considering refinancing

…it’s a great time to revisit your strategy.

Next Important Date: The Bank of Canada will announce rates again on December 10, 2025, another shift could happen before the new year.

Let’s talk about what today’s change means for you and whether it’s time to update your mortgage game plan.