Bank of Canada Cuts Interest Rate by 0.25%

Bank of Canada Cuts Interest Rate by 0.25%

The Bank of Canada just announced a 0.25% rate cut, bringing the policy rate down to 2.25%.

This means that if you have a variable or adjustable-rate mortgage or loan, you’ll likely see your rate, and your payment, drop right away. Fixed rates, however, aren’t directly affected by this change.

Quick Overview

• Rate change: -0.25% (25 bps)

• Policy rate: 2.25%

• Most lenders’ prime rate: 4.45%

• Next Bank of Canada announcement: December 10, 2025

Why the Cut?

This move is meant to support economic growth by lowering the cost of borrowing.
The Bank expects inflation to stay stable, but noted that rate cuts can only do so much to offset global challenges like ongoing trade conflicts.

💡 What This Means for You

Thinking of buying?
Now could be a great time to start planning your move:

• 🏠 Lock in a rate hold - it protects you if rates bounce back up later.

• 📉 Lower rates can make borrowing more affordable, though in areas with higher housing supply, prices might not jump too quickly.

Even a small rate change can make a noticeable difference in monthly payments, especially for first-time buyers.

Want more info? Contact me and I'll put you in touch with a mortgage professional