On September 17, 2025, the Bank of Canada announced a 25-basis-point cut to its policy interest rate, bringing it down to 2.5%. This is the first rate decrease since March 2025, driven by economic concerns, including risks related to tariffs and a slowdown in global growth. The decision aims to stimulate economic activity by making borrowing less expensive.

Immediate effects on mortgage rates

In the real estate sector, the rate cut quickly translates into lower mortgage rates, particularly for variable-rate loans. For buyers, this can mean significant monthly savings, making homeownership more affordable.

In Montreal, where the housing market remains very active, this measure could encourage more families and investors to purchase or invest in real estate. Concretely, this may lead to stronger demand, a faster pace of transactions, and, in certain sought-after neighborhoods, upward pressure on prices.

A window of opportunity for sellers

For sellers, the context is favorable. A larger pool of buyers, supported by easier financing conditions, means that properties are likely to sell more quickly and often under advantageous terms.

Contact a member of our team today to take full advantage of this evolving real estate landscape.