Bank of Canada Cuts Interest Rates to 2.75%

The Bank of Canada has just lowered its policy interest rate by 25 basis points to 2.75%, bringing some financial relief to homeowners with variable-rate mortgages and lines of credit.

Most lenders are expected to adjust their prime rates to 4.95% in the coming days, making borrowing more affordable for many Canadians. TD Bank, which typically sets its mortgage prime rate slightly higher, is likely to decrease its rate to 5.10%.

For those with variable-rate mortgages and adjustable payments, this reduction translates to savings of approximately $14 per $100,000 of mortgage balance on a 25-year amortization. If your mortgage has fixed payments, a larger portion will now go toward reducing your principal. While fixed-rate mortgages remain unchanged for now, lower rates in the future could create favorable conditions for renewals or refinancing.

The Bank of Canada will continue monitoring inflation and economic trends, including potential impacts from U.S. trade policies. The next rate announcement is scheduled for April 16 — stay tuned for further updates!

If you’re considering buying, selling, or refinancing, reach out to Cripps Realty. We’re here to help you navigate the market with confidence.