Canada’s 2025 Mortgage Outlook: How the Bank of Canada’s 2.75% Hold Impacts You

 

Canada’s 2025 Mortgage Outlook

The Bank of Canada has held its overnight rate at 2.75% (July 30, 2025), signaling stability for now while leaving the door open for modest cuts later this year. For Canadian borrowers, this pause offers a unique opportunity to reassess their mortgage strategies.

What This Means for You

  • Variable‑rate borrowers: Payments remain stable, but potential cuts could mean savings by year‑end.
  • Fixed‑rate borrowers: Five‑year fixed rates are hovering near 3.9–4.1%, with limited movement expected until bond yields shift.
  • Renewals: Over 1.5M mortgages are renewing this year—acting early can prevent payment shock.
  • First‑time buyers: Extended amortizations and hybrid products may improve affordability in high‑cost markets.

Regional Highlights

In Abbotsford and Surrey, affordability remains tight due to strong demand and limited inventory—making creative mortgage structuring vital. Edmonton, with its stable pricing and improving supply, offers opportunities for buyers to lock in competitive terms.

Strategies to Consider

  • Stay flexible: Variable or short‑term fixed products can help you benefit from future cuts.
  • Plan renewals early: Negotiating ahead of your term’s end can save thousands.
  • Explore refinancing: Take advantage of potential rate drops to consolidate debt or access home equity.

For more insights, see:

The Bottom Line

Whether you’re buying in Surrey, renewing in Abbotsford, or refinancing in Edmonton, now is the time to review your mortgage plan.

Sandhu & Sran Mortgages helps clients across BC and Alberta secure competitive rates and tailor strategies for their goals.

Contact us today to create a mortgage plan that works for you: sandhusranmortgages.com

Location: 2328 Clearbrook Rd, Abbotsford, BC V2T 2X5, Canada

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