Good News! The Bank of Canada cut its key interest rate by 0.25%. This move was widely anticipated and marks the Bank’s latest step in easing borrowing costs.
Here’s how today’s cut may affect you:
- Variable-rate mortgages: Expect a drop in your interest rate and monthly payments once lenders adjust their prime rates. Most are expected to lower to 4.70%, with TD’s mortgage prime rate slightly higher at 4.85%.
- Fixed-rate mortgages: No immediate impact today. Fixed rates are tied more closely to bond markets, which can still shift in response to the Bank’s actions and broader economic conditions.
- Lines of credit and other loans tied to prime: Borrowing costs should ease slightly as prime rates move lower.
What you can do next
- Renewal in the next few months? Let’s discuss rate-hold options and timing.
- Considering a purchase or refinance? I can run the numbers and see what today’s cut means for your budget.
The Bank’s next rate decision is October 29, 2025. Between now and then, inflation and economic data will guide the path from here.