Today's Prime Lending Rate | 4.70% | Next Bank of Canada Meeting - October 29th, 2025 |
Variable Rates: * |
||
Home Equity Line of Credit | P + .25% (4.95% today) | No Change |
5 Year Closed - 25 year amortization Purchases Only | P - 0.75% (4.20% today) | No Change |
5 Year Closed - 30 year amortization Refinances | P - .45% (4.45% today) | No Change |
Residential Owner Occupied Fixed Mortgage Rates From: ** |
1 Year Closed | 5.24% | No Change |
2 Year Closed | 4.49% | No Change |
3 Year Closed | 4.29% | No Change |
4 Year Closed | 4.44% | No Change |
5 Year Closed - Refinances and conventional purchases | 4.44% | .10% Increase |
5 Year Closed - CMHC/Sagan insured purchases and transfers | 3.99% | .40% Decrease |
7 Year Closed - CMHC insured for purchases and transfers | 5.14% | .20% Decrease |
10 Year Closed - CMHC insured for purchases and transfers | 5.24% | .20% Decrease |
Federal Government / Bank of Canada Qualifying Rate or contract rate plus 2% (the higher) |
Bank of Canada Update – September 19, 2025
The Bank of Canada lowered its policy rate by 0.25% at its September 19 meeting, bringing the overnight rate to 2.50%, the Bank Rate to 2.75%, and the deposit rate to 2.50%. This is the Bank’s first move since July and follows a total of 2.50% in rate cuts since June 2024.
Headline inflation continues to cool, with CPI easing to 1.8% in August, dipping slightly below the Bank’s 2% target. However, core inflation (excluding indirect taxes) remains elevated around 2.4%, a sign that underlying price pressures are easing but not yet fully anchored.
The Canadian economy contracted by an estimated 0.7% in Q3, a milder decline than earlier in the year but still reflecting weak consumer spending and a sluggish export sector. The labour market shows further signs of softening, with unemployment rising to 7.1% in August. Wage growth has moderated but remains somewhat above levels consistent with the inflation target.
Global uncertainty remains a key factor, particularly around U.S. trade policy and commodity prices. The Bank again presented multiple scenarios in its Monetary Policy Report, refraining from offering a clear base-case projection given the risks.
Governor Tiff Macklem emphasized that the Bank remains prepared to adjust rates further if growth continues to disappoint while inflation stays within the 1–3% control range. Markets are now pricing in the likelihood of another cut before year-end, which could bring the overnight rate to 2.25%.
For mortgage borrowers:
Variable-rate holders tied to prime (~4.70%) will see their rates decline modestly with this move.
Fixed-rate borrowers may benefit if government bond yields continue to ease in anticipation of further cuts.
The mortgage stress test remains unchanged, requiring qualification at 2% above the contract rate—meaning approvals are still assessed in the 6.25% range or higher for most borrowers.
The next Bank of Canada rate decision is scheduled for October 30, 2025, with policymakers reaffirming a data-dependent approach, focused on inflation, labour market conditions, and global developments.