Bank of Canada Rate Cut September 2025: What It Means for Ontario Mortgages

What changed

The Bank of Canada announced a 25 basis point rate cut, lowering the overnight rate to 2.50%. The Bank Rate is now 2.75% and the deposit rate is 2.45%. The Bank of Canada rate cut September 2025 directly affects variable mortgages and influences lender pricing for fixed options.

Why the Bank of Canada rate cut September 2025 matters

• Inflation pressures are easing, giving the central bank room to act.

• The labour market has softened, with unemployment trending higher.

• Trade uncertainty and weak exports have weighed on GDP.

These shifts create a more favourable environment for Ontario mortgage borrowers.

Current Ontario Mortgage Rates

Here are the ranges buyers and homeowners are seeing across Ontario today:

Mortgage Term / Type	Typical Ontario Rate Range
3-year fixed (brokerages, low risk)	3.60% – 4.70%
5-year fixed (brokerages, insured)	3.70% – 4.80%
3-year fixed (big bank special offers)	4.30% – 4.50%
5-year fixed (big bank posted rates)	4.50% – 4.80%
Variable rate (linked to prime)	3.80% – 4.50%

What the Bank of Canada rate cut September 2025 means for mortgages

Situation	Impact
Locking in a fixed mortgage	Rates in the high-3% to low-4% range provide stability at more affordable levels than earlier this year.
Considering or holding a variable mortgage	Variable offers are adjusting lower with prime, some closer to 3.80%. This creates monthly relief.
Buying a home now	Lower borrowing costs improve affordability. Even a 1% rate difference saves hundreds each month.
Renewing or refinancing	Renewals are still higher than the lows of recent years, but today’s cut softens the increase. Reviewing options now can reduce costs.

Monthly Payment Example

For a $600,000 mortgage with a 25-year amortization:

• At 3.70% → about $3,070/month

• At 4.70% → about $3,405/month

That difference is about $335 per month or over $4,000 per year.

Key questions to ask after the Bank of Canada rate cut September 2025

• How quickly will lenders pass on the full 0.25% cut?

• What spreads are you seeing between fixed and variable products?

• Which mortgage term best fits your financial goals?

• How do your down payment and credit score affect your rate?

• Do you have buffer room in your budget if rates rise again?

Bottom line on the Bank of Canada rate cut September 2025

This cut is positive news for buyers, renewers, and refinancers across Ontario. It lowers borrowing costs and creates opportunities to secure better mortgage deals. Affordability challenges remain, but today’s decision strengthens your negotiating position.

At Seventy Seven Park, every mortgage is structured around your financial picture. Whether you are buying, renewing, or refinancing, our team will guide you through the options and help you secure the most competitive solution available.

Contact us today

Seventy Seven Park Mortgages

(416) 350-8448 | info@seventysevenpark.ca

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