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:
Mahogany Homes for Sale – Consistent buyer interest and modern amenities.
Legacy Calgary Homes – Attractive for move-up buyers seeking more space.
Cornerstone Calgary Homes – Growing northeast hub with new inventory options.
Auburn Bay Homes – Lakeside living continues to appeal to families.
Explore more active listings across all Calgary communities on our Neighbourhood Guide.
What Buyers Should Watch
Mortgage Rate Adjustments: Lenders may begin updating rates in the coming weeks.
Inventory Shifts: Lower rates can spark buyer competition in entry and mid-tier markets.
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
