Date: October 29, 2025
The Bank of Canada cut its overnight rate by 0.25% to 2.25% on October 29, 2025. The Bank Rate is now 2.50% and the deposit rate 2.20%. Bank of Canada
What changes right away?
- Variable mortgages: These are tied to lenders’ prime rates. Banks typically adjust prime shortly after a BoC move, so variable rates should ease quickly (watch for lender announcements). RBC Royal Bank
- Fixed mortgages: Fixed rates don’t follow the BoC directly. They track Government of Canada bond yields at a spread, especially the 5-year. If bond yields dip, lenders may trim fixed rates over the next few days. True North Mortgage+2nesto.ca
Local snapshot: more choice for buyers
Heading into fall, the Hamilton–Burlington area sat near a 35% sales-to-new-listings ratio with roughly five months of supply—firmly a buyer-leaning setup. That means well-priced, well-presented homes sell, while overpriced homes sit. rahb.ca+2WOWA
What we expect in the next few weeks
- A modest lift in showings and pre-approvals, especially for entry-level townhomes and detached in Hamilton and townhomes in Burlington and Niagara North.
- No return to bidding-war mania. Elevated inventory and a 35% SNLR should temper price spikes, even with slightly cheaper payments. rahb.ca
Action steps if you’re moving soon
Buyers
- Update your pre-approval to capture the new rate and confirm payment at today’s qualifying rate.
- Watch bond yields—if the 5-year dips, ask your lender about fixed-rate holds. True North Mortgage
Sellers
- Price to the market you have, not last year’s. Buyer leverage rises when supply is high.
- Dial in presentation (repairs, staging, photography). In this inventory environment, sharp listings win faster.
Everyone
- Compare the all-in cost across lenders: rate, fees, prepayment, portability, and penalties—not just the headline rate.
- If you’re torn between fixed and variable, match the product to your income stability and risk comfort. RBC Royal Bank
Bottom line
This cut improves affordability at the margins and should nudge activity, but the local market still rewards smart pricing and clean documentation over hype.
Wondering how today’s move affects your timing, budget, or strategy?
Call or text Team Bush at 905-308-1877, or DM us. We’ll model your options and connect you with vetted mortgage pros.
Sources
- Bank of Canada press release and key rate table (Oct 29, 2025): target rate 2.25% (-0.25%). Bank of Canada
- Why fixed rates track bond yields; variables track prime/BoC: RBC, True North Mortgage, nesto, Forbes. Forbes+3RBC Royal Bank+3True North Mortgage+3
- Local conditions (SNLR ~35%, ~5 months of supply): RAHB market update; Hamilton market aggregators. rahb.ca+2WOWA
WHAT’S YOUR HOME WORTH?
Find out what your home may sell for in today’s market. Are you thinking of selling your home or interested in learning what a neighbor’s house is selling for? We can help you see what it’s worth.
