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Bank of Canada Cuts Interest Rate to 2.25% — What It Means for Calgary Homebuyers

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Bank of Canada Cuts Interest Rate to 2.25% — What It Means for Calgary Homebuyers

Date: October 29, 2025

Overview

The Bank of Canada lowered its key interest rate by 25 basis points to 2.25%, marking its first adjustment since mid-2025. The decision reflects ongoing economic softness, stable inflation near the 2% target, and concerns over global trade disruptions.
➡️ Read the full Bank of Canada statement

Key Takeaways

  • Rate Cut: Overnight rate now at 2.25%, down from 2.50%.

  • Inflation: Stable around 2%, giving the Bank room to ease policy.

  • Economic Growth: Canadian GDP contracted 1.6% in Q2, driven by weak exports and business investment.

  • Labour Market: Unemployment steady at 7.1%; hiring remains soft.

  • Next Update: December 10, 2025.

Impact on Homebuyers and Homeowners

Lower borrowing costs could bring modest relief to mortgage holders and create a more favorable environment for new buyers. Variable-rate mortgage holders may see immediate payment reductions, while fixed-rate borrowers could benefit from lower renewal rates.

As affordability improves slightly, Calgary’s housing market may experience renewed activity across key communities, particularly among first-time buyers and upgraders.

Local Market Insight

Communities with strong demand for family housing and new developments may benefit most:

Explore more active listings across all Calgary communities on our Neighbourhood Guide.

What Buyers Should Watch

  1. Mortgage Rate Adjustments: Lenders may begin updating rates in the coming weeks.

  2. Inventory Shifts: Lower rates can spark buyer competition in entry and mid-tier markets.

  3. Economic Signals: Keep an eye on employment data and consumer spending ahead of the December 10 update.

Bottom Line

The rate cut aims to support economic stability while keeping inflation near target. For Calgary buyers, it’s a window to secure lower financing and act before market demand strengthens.

Learn more about mortgage options and property listings at Calgary Listing Hub.

Tags: #BankofCanada #InterestRates #RealEstateCanada #CalgaryRealEstate #C21Canada

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