By: Geoff Harris, Real Estate Broker
Spring’s in full swing, and the last Bank of Canada announcement added a new twist to the spring market. After seven consecutive rate cuts, the Bank has chosen to pause - holding its key interest rate steady at 2.75%.
As someone who lives and breathes real estate every day, I know how much these decisions affect everything from mortgage affordability to buyer confidence. Here’s a quick breakdown of what’s going on and how it could impact your next move.
Why the Pause?
The short answer: uncertainty.
While inflation is easing, the global economic outlook—particularly around U.S. trade policies and tariffs - is murky. That’s making it tough for the Bank of Canada to predict what comes next.
Here’s what we’re seeing behind the headlines:
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Trade tensions are making businesses more cautious and slowing consumer spending.
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Canadian businesses are hitting pause on hiring and investment.
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Households are showing more restraint, thinking twice before making big purchases.
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Inflation came in at 2.3% in March. Some prices may drop thanks to lower oil prices and the carbon tax phase-out, but others could rise due to supply chain issues and tariffs.
Instead of continuing to cut, the Bank is opting to pause and monitor - taking a smart, wait-and-see approach before making the next move.
What Does This Mean for You?
Whether you’re buying, selling, renewing your mortgage, or exploring refinancing options - timing and strategy matter more than ever.
Here’s my advice:
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For Buyers: Today’s rate pause keeps things stable in the short term. If you’ve been waiting for the “right” time to make a move, this could be a great window to lock in a rate and make a competitive offer before the market shifts again.
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For Sellers: Serious buyers are still active - and low inventory in many markets is working in your favour. Presentation and pricing are key, and our team can help you maximize value.
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For Homeowners with Renewals Coming Up: Let’s talk. Depending on your goals, this could be a good time to review your options and get ahead of any changes.
What’s Next?
The next Bank of Canada update is scheduled for June 4, 2025. I’ll be watching it closely and will share key updates again when the time comes.
In the meantime, if you have questions about what today’s announcement means for your plans—whether that’s buying, selling, or just staying informed - let’s connect. No pressure, just practical advice tailored to your goals.
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