Particle.news
Download on the App Store
4 ARTICLES
·
6h ago

Bank of Canada Cuts Key Rate to 2.25% as Lenders Trim Mortgage Costs

Lower borrowing costs are starting to flow through to mortgages, with signs of a tentative housing rebound.

When the Bank of Canada changes its benchmark interest rate, it can affect you in many ways.

Overview

  • The central bank lowered the overnight rate by 25 basis points to 2.25%, extending this year’s easing cycle.
  • Mortgage pricing moved down quickly, with the lowest five-year fixed insured rate reported at 3.79%, just above leading variable options.
  • Variable-rate borrowers stand to see modest payment relief, while fixed-rate shoppers are being urged to lock pre-approvals to preserve discounts.
  • Recent data from CREA and TRREB show firmer activity, including the busiest September for sales since 2021 and an 8.5% year-over-year sales gain in Toronto.
  • Forecasts for 2026 diverge, with BMO seeing 2.0%, CIBC and TD expecting 2.25% to hold, and Scotiabank projecting 2.75%, as economists caution the cutting phase may be nearing its end.