Date: June 5, 2025
By: Andrea Peart Williams, Real Estate Coach & Founder, PW Wealth
After seven rate cuts since last June, the Bank of Canada (BoC) has decided to hold its key interest rate steady at 2.75% — no surprise here, as most economists had predicted this pause. But the tone is worth watching: cautious, data-driven, and noncommittal.
A Strategic Pause, Not a Pivot
This is the second consecutive hold since the aggressive rate-cutting cycle began. We’ve now seen rates drop 2.25% from a peak of 5%. For borrowers and investors alike, this is a welcome easing of pressure, but don’t mistake it for a guaranteed path back to ultra-low rates.
Read the full Bank of Canada announcement here https://www.bankofcanada.ca/2025/06/fad-press-release-2025-06-05/
What This Means for Real Estate Investors
As someone watching the market closely — and coaching others through it — here’s what I’m paying attention to:
✅ Variable-rate mortgage holders are starting to breathe again
✅ Refinance opportunities are improving
✅ Rental property margins may begin to recover
✅ Buyer confidence could return in some markets — but slowly
But let’s be real: inflation still matters, and so do your fundamentals. This is the time to fine-tune your numbers, not overextend.
What Should You Do Now?
Here are a few action steps to consider:
- Review your mortgages: Especially if you’re approaching renewal, let’s talk strategy.
- Run your numbers again: Lower rates shift your cashflow picture — update your forecasts.
- Consider refinancing: A drop of even 0.5% can create breathing room in your budget.
- Stay alert, not reactive: The BoC is watching. So should you. Stick to the data.
Let’s Talk About It
Are you thinking about:
- Selling or refinancing soon?
- Buying while rates are still low-ish?
- Locking in before another shift?
Let’s talk about your strategy.
💡 Book a Strategy call with Andrea
📣 Or join the conversation in our PW Wealth Builders Private Community, where we break down the latest news and how it affects your bottom line.
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At PW Wealth, we believe information only becomes power when it’s paired with action. Don’t just watch the market — move in it with clarity and confidence.
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