What the Bank of Canada’s latest move means for buyers, sellers and your next move

What just happened?

The Bank of Canada cut its target overnight rate by 25 basis points, bringing it down to 2.25%, with the Bank Rate at 2.50% and the deposit rate at 2.20%.
This marks a return to a rate-cutting cycle after several months of pauses, and one previous reduction in September, as the central bank responds to signs of slowing growth and softer inflationary pressure.

Why now?

• Canada’s economy contracted by roughly 1.6% in Q2, driven by weak exports and business investment.
• The labour market is softer: unemployment is elevated around 7.1 %, hiring is weak.
• While inflation remains close to target, core inflation is still sticky and risks remain. The Bank judged that with “less upside risk to inflation,” it was time to ease.

What this means for the real-estate market

Buying power & mortgage implications

• Borrowing costs should ease for variable-rate mortgages, and over time fixed rates could respond too — meaning better affordability for buyers entering or renewing.
• For sellers, this adds potential buyer-interest, especially those who had been sitting on the sidelines.

Inventory, prices and timing

• With borrowing becoming a little easier, buyer activity may pick up — helping absorb excess inventory.
• That said, prices are unlikely to rebound sharply overnight, especially in markets already facing affordability constraints. Expect a more gradual recovery or stabilization rather than dramatic jumps.
• If you’ve been waiting for the “rate relief” moment, this could act as trigger — but timing, property type and location still matter. In tighter sub-markets/less affordable zones, the impact may be delayed.

Sellers: what to keep in mind

• The improved rate backdrop is supportive — but it doesn’t override fundamentals. Inventory levels, property condition, neighbourhood demand, and pricing strategy remain critical.
• If you’re listing soon, positioning your home at sharp pricing with strong presentation will maximise benefits of this rate shift.
• For many buyers, this announcement can be the nudge to begin or resume their search — so acting early may capture demand ahead of competition.

What to watch next

• The Bank of Canadas next rate announcement is set for December 10^th, 2025— key data points to monitor: employment trends, inflation momentum (both headline & core), consumer/business confidence and global trade pressures.
• Mortgage rate spreads (fixed vs variable) — changes here will directly influence how the real-estate market reacts.
• Local inventory and days-on-market trends — seeing if buyer interest picks up will indicate if the rate cut is translating into real-estate momentum.

Bottom line

This rate cut is a meaningful signal: the credit environment is easing, which supports real-estate activity. But it’s not a silver bullet. For both buyers and sellers, success will depend on strategy, timing and local market dynamics.
If you’re thinking of making a move — buying or selling — now is a smart time to reassess where you stand and how you can best position yourself in this evolving landscape.

Need help navigating this shift?
Let our team walk you through what this rate change means for your neighbourhood, your budget and your real-estate goals.

We’ll handle the details — you focus on what’s next.

Sources For Further Reading:

1. Bank of Canada. (2025, September 17). Bank of Canada lowers policy rate to 2½% [Press release].
2. Bank of Canada. (2025, September 17). Press conference: Policy rate announcement – September 2025 [Transcript].
3. Ljunggren, D. (2025, September 17). Bank of Canada cuts rates to 2.50%, says ready to cut again if risks rise. Reuters.
4. Ljunggren, D. (2025, October 29). Full text — Bank of Canada lowers key rate to 2.25%. Reuters.
5. Ljunggren, D. (2025, October 27). Bank of Canada poised to cut rates to 2.25% amid economic slowdown. Reuters.
6. Ljunggren, D., & Mukherjee, P. (2025, October 20). Bank of Canada says firms’ outlooks remain subdued amid trade tensions. Reuters.
7. Reuters. (2025, October 29). Canadian dollar hits four-week high as BoC’s guidance turns more hawkish [News report].

TOP 5 reasons to work with R3 Hayes Real Estate Group!

Ready to make your real estate goals a reality? Reach out today...let’s get started!

R3 Hayes Real Estate Group – Your Neighbourhood Experts

  Call/Text:

Ryan: 604-561-2127

 Follow us on social media for more market updates!