Bank of Canada Rate Cuts 2025: What September’s Move Means for Vancouver Real Estate
Breaking news for Vancouver homeowners and buyers — on September 17, 2025, the Bank of Canada cut its key rate by 0.25% to 2.5%, responding to elevated unemployment (7.1%), slow GDP, and inflation now back within target range. With trade disruption still a risk, most analysts expect another cut as soon as October 29 and further movement before year-end.
Key Rate Announcement Dates
Monitor these dates for moves that will affect mortgages, buying power, and price trends:
- January 29, 2025
- March 12, 2025
- April 16, 2025
- June 4, 2025
- July 30, 2025
- September 17, 2025 – Cut to 2.5%
- October 29, 2025 – 48% chance of another cut
- December 10, 2025
Why More Rate Cuts May Be Ahead
- Trade war effects slowing exports and business investment
- Unemployment at a nine-year peak outside Covid years
- Core inflation receding, near 2–2.5%
- GDP contracted −1.6% in Q2; forecast remains weak
With risks weighted toward economic weakness and subdued inflation, odds favor further easing in 2025.
How Vancouver Real Estate Responds
For Buyers: Lower rates increase affordability, qualifying buyers for $25K–40K more in mortgage. Anticipate more competition in Q4 2025 as sidelined groups enter the market.
For Sellers: More buyers and affordable rates mean quicker sales and competitive bidding this fall.
For Variable Mortgage Holders: Immediate payment reduction; fixed rates may drop next quarter.
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- October–November: Q4 inventory + lower rates optimize deals
- Pre-approval: Act now to lock lowest rates possible
- Take advantage of GST rebates (up to $50K on new builds)
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