Bank of Canada Interest Rates: What to Expect in September 2025
As we move into September 2025, all eyes are once again on the Bank of Canada and whether it will finally start easing interest rates. Over the past year, Canadians have faced higher borrowing costs, impacting everything from mortgages to lines of credit. While inflation has cooled from last year’s highs, the economy is still showing mixed signals—making the next rate decision one of the most anticipated in recent months.
Will the Bank of Canada Cut Rates?
Economists remain divided. Some point to weaker consumer spending and softer housing demand as reasons the Bank could make a small cut. Others believe the Bank may hold off until later this fall, wanting more confidence that inflation is firmly under control. Either way, the trend suggests we’re moving closer to a turning point.
What This Means for Real Estate
Interest rates play a major role in shaping the housing market. Here’s what buyers, sellers, and investors should keep in mind:
For Buyers: Even a modest rate cut could improve affordability, making mortgage payments more manageable. If rates hold steady, today’s conditions still offer negotiating power with motivated sellers and more inventory to choose from.
For Sellers: Timing is everything. A future rate cut could bring more buyers back into the market, increasing competition and driving stronger offers. If you’re considering listing, staying informed about rate changes will help you maximize your strategy.
For Investors: Market shifts can quickly change the math on rental returns and property values. Tracking rate announcements will be key in planning your next move.
The Bottom Line
While no one can say with certainty what the Bank of Canada will decide this September, the overall outlook suggests we’re nearing the end of the high-rate cycle. Whether you’re planning to buy, sell, or invest, staying ahead of these changes ensures you’re ready to take advantage of new opportunities as they arise.