🏦🇨🇦 April 2025 Interest Rate Update: What the Bank of Canada's Hold Means for Homeowners

Today, the Bank of Canada announced that it will hold the overnight rate steady at 2.75%, following a string of rate cuts earlier this year and going back into 2024.

Bank of Canada Head Office, Ottawa

While many Canadians were hoping for another drop, the Bank has decided to pause and reassess, largely due to recent economic uncertainty brought on by new U.S. tariffs.

Why did the Bank pause rate cuts?

The Bank of Canada is navigating a fine balance between supporting the economy and controlling inflation. With trade tensions heating up and no clear resolution in sight, the Bank is taking a more cautious, data-driven approach. In today’s press release, they noted that while inflation has been trending downward, the risks of a prolonged trade disruption could push it back up—potentially into uncomfortable territory.

A look at the past year

Over the last 12 months, we’ve seen a clear downward trend in interest rates. Here’s a quick snapshot of the Bank of Canada's rate announcements:

This sequence of cuts was intended to ease pressure on borrowers, stimulate the economy, and help bring inflation back to target. But with this hold, the Bank is signalling that we may be entering a period of “wait and see.”

What this means for you

Even though rates didn’t change today, that doesn’t mean you should stay on the sidelines. In fact, this might be the perfect time to take a fresh look at your mortgage and your overall financial picture.

Whether you're:

• On a fixed rate that’s coming up for renewal,

• Managing high-interest debt and struggling with cash flow,

• Or wondering if now is the right time to refinance or consolidate,

  
  

…it’s worth having a conversation.

I help homeowners just like you navigate moments like this—looking at your goals, your budget, and your unique situation to see what options make the most sense. Sometimes that means a full refinance. Other times it’s a simple strategy to help you stay ahead without taking on more debt.

Let’s talk strategy

If you're wondering what today’s announcement means for your mortgage or your monthly budget, I’d love to help you figure that out. No pressure, no obligation—just honest advice and a clear plan.

📩 Send me a message or book a time here to chat.

—Melissa

Melissa Kuczepa, AMPC, Mortgage Agent Level 2

(905) 925-4762

melissa@mkmortgagesolutions.com

Mortgage Architects #12728