The Bank of Canada has held its key interest rate at 2.25%, marking the sixth consecutive decision to leave rates unchanged since the last cut in October 2025.
To put this stretch in context: the rate dropped steadily through 2025, moving from 2.75% in the spring down to 2.50% in September and then to 2.25% by late October. It’s stayed right there through six announcements since January, March, April, June, July, and now September.
With inflation running close to the Bank’s 2% target and continued uncertainty in the global economy, the Bank has chosen to hold rather than move in either direction. Cutting further could risk reigniting inflation; raising rates could slow a market that’s still finding its footing. Staying put lets the Bank watch how things unfold before its next move.
What This Means for Buyers
For buyers, today’s announcement doesn’t change much in the immediate term.
If you have a variable-rate mortgage, your rate remains tied to the Bank’s policy rate, so there’s no change there today. If you’re considering a fixed-rate mortgage, remember that fixed rates are influenced more by the bond market than by the Bank of Canada’s announcements, so it’s worth watching bond yields separately if you’re timing a purchase.
For many buyers, the bigger takeaway is simply predictability. After a period of significant rate movement, a steady rate gives buyers a little more confidence in planning their next move – and in getting a pre-approval number that’s likely to hold steady while they shop.
What This Means for Sellers
A stable rate environment can also be helpful for sellers.
Stable borrowing costs remove one of the easiest excuses to wait. Not every buyer will move right away, but for those already leaning toward a decision, that consistency can be the push that turns “maybe soon” into “let’s go.” It also gives sellers a more predictable financing landscape to work with, which is useful when structuring offers or negotiating timelines with a buyer.
The Bottom Line
Today’s decision isn’t a surprise, but it does add to a growing sense that we’re settled into a stretch of stability. Whether you’re buying, selling, or just watching from the sidelines, having a clear read on where rates stand makes it easier to move forward with confidence.
The Bank’s next scheduled announcement lands on October 28, alongside a full Monetary Policy Report, which will give a fuller picture of the Bank’s outlook heading into 2027.
Have questions about what the current rate environment means for your plans in Midtown Toronto? We’re always happy to talk it through.
Lome Irwin Real Estate Team
clientcare@lomeirwin.com