The Bank of Canada Cuts Its Key Interest Rate by 0.25%

Breaking news: The Bank of Canada just cut its key interest rate by 0.25% on September 17, 2025.

This means most lenders’ prime rate should fall to 4.70% in the coming days. Here’s what that could mean for you and your mortgage.

1️⃣ Adjustable Rate Mortgage Holders: If your mortgage is tied to prime, your payments will drop. You can expect to pay approximately $15 less per month for every $100K of mortgage.

2️⃣ Static Variable Mortgage Holders: Your payment will stay the same, but more of your payment will go toward principal instead of interest. ✅

3️⃣ More Buying Power - Lower rates = bigger approval amounts with the same income, as we use a lower qualifying rate.

4️⃣ Your Home Equity Line of Credit (HELOC) & Lines of Credit interest rate will be dropping! Anything with an interest rate tied to prime (such as HELOCs) will result in lower payments.

5️⃣ Fixed Rates Unchanged (for now): No immediate change, but cuts can signal a downward trend in fixed rates. That’s because fixed rates don’t follow the Bank of Canada; they follow something else called Canada Bond Yields (basically, how much the government pays people who lend it money).

6️⃣ Hotter Market Activity - Cheaper borrowing often sparks more buying, selling, and refinancing opportunities.

What does this mean for you?

Lower borrowing costs could create opportunities for homeowners and buyers alike.

Let’s chat about how this impacts your mortgage options! ✨