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On September 17, 2025, the Bank of Canada announced it is lowering its policy interest rate by 25 basis points to 2.50%, with the deposit rate at 2.45% and the Bank Rate at 2.75%. This decision comes in response to signs of slowing economic activity, including weaker export performance and a cooling labour market. For the real estate market, this shift in policy rate is notable. A reduction in rates can influence borrowing conditions, particularly for those with variable-rate mortgages or upcoming renewals. While the broader economy has experienced headwinds from trade-related pressures and moderated business investment, the housing market continues to be supported by consumer demand and easing inflationary trends. Impacts on Buyers and Sellers With inflation moving closer to target and shelter price growth moderating, affordability remains in focus. The Bank’s adjustment provides a signal of easing financial conditions, which may support stability in mortgage lending and borrowing decisions in the months ahead. For sellers, the lower rate environment could help sustain buyer interest as households continue to navigate broader economic uncertainty. Employment has shown some signs of cooling, yet household spending remains resilient, contributing to continued activity in the housing sector. Looking Ahead The Bank’s decision reflects an effort to balance slowing growth with the need to keep inflation near its 2% target. Ongoing global trade developments, domestic labour market conditions, and business investment trends remain key factors shaping the economic outlook. The next interest rate announcement is scheduled for October 29, 2025. Until then, the new policy rate will help set the tone for market conditions heading into the fall season.  Have questions about how this affects your buying or selling plans? Contact us today for a personalized conversation about your next steps in the current market.

Join us on October 24th for a Special Night of Hockey & Heart On Thursday, October 24, the Storm’s Cause Marketing Game—sponsored by Coldwell Banker—will donate 50/50 proceeds to the Guelph Wish Fund. The Guelph Wish Fund for Children is a local charity dedicated to making dreams come true for children in Guelph and Wellington County who are facing life-altering illnesses, serious medical challenges, or significant disabilities. For over 40 years, the organization has been creating moments of joy, comfort, and hope for these children and their families—whether through dream vacations, unforgettable celebrations, or providing essential equipment that enhances their quality of life. By supporting this remarkable cause, you’re helping bring light to the lives of local kids during some of their toughest times—and showing that CBN proudly stands with our community’s young heroes, both on and off the ice.