Best Real Estate Agent for Condos in Toronto | Bank of Canada Cuts Key Rate to 2.25%. What This Means for Toronto Real Estate

🏠 Bank of Canada Cuts Key Rate to 2.25% — What This Means for Toronto Real Estate

On October 29, 2025, the Bank of Canada announced a 0.25% policy rate cut, bringing the key interest rate down to 2.25%. The Bank cited continued economic softness and stable inflation near its 2% target as key reasons for this decision. 🔗 Read the official release by clicking here. 

What This Means for Homebuyers

Lower interest rates often translate into slightly more affordable borrowing costs. For Toronto buyers, this adjustment could open up new opportunities to qualify for a larger mortgage or lock in a better rate on upcoming renewals. It’s a small but meaningful shift that may help increase overall confidence in the housing market.

What This Means for Sellers

For homeowners considering selling, lower rates tend to draw more buyers into the market — particularly those who were waiting on the sidelines for more favorable lending conditions. This increased activity can support stronger showing traffic and potentially shorten market times heading into the winter months.

The next rate announcement is scheduled for December 10, 2025, when we’ll see whether this trend continues or stabilizes.

💬 Thinking about buying or selling in Toronto or the GTA?

Karen’s team can help you understand how changing interest rates may impact your next move and position you for success in this evolving market.