# BoC Rate Date - April 16, 2025 ![Apr16](https://d2r7yk1mqahd04.cloudfront.net/images/Apr16.png) ### April 16, 2025 # Rate rope burn? [Email link](https://mailchi.mp/truenorthmortgage/april-2025-rate-pause-5384552?e=85e94d3902) ## BoC holds its rate at 2.75%. April 16, 2025 – Bank of Canada **holds the rope** on its rate-cut agenda, pausing its policy rate at 2.75% and most bank [prime](https://www.truenorthmortgage.ca/blog/prime-rate-mortgages-explained) rates at **4.95%**. It's the first **no-cut** since June 2024. (We'll pause here for a second of sadness.) ## Caught in an economic tug-of-war. When was the last time *you* were in a tug-of-war? If you can't remember, that's probably a good thing. On one side of the mud pit, it's the economy (we can't bring ourselves to say "stupid"). On the other side, gosh-darn inflation. Interest rates are caught in the [tug-of-war](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) **between** economic weakening from the U.S. trade disruption and rising inflation. The BoC is trying to **avoid rope burn** with this rate pause — there's strain and struggle, hanging on until the way to win becomes clear. **It's usually not over 'til someone's in the mud.** If the rate-cut side eventually wins, a struggling Canadian economy will mute the celebration. ## It's all fun and games until someone pulls a hamstring. A pause in prime rates means home [affordability](https://www.truenorthmortgage.ca/tools/affordability-calculator) improvement also digs in for the rope-hold treatment. - No change for variable mortgage and HELOC interest rates - Those renewing soon may need to tap out and lock in (with one of our great [rates](https://www.truenorthmortgage.ca/rates), of course) - Some of our clients may side with a [shorter](https://www.truenorthmortgage.ca/blog/trumps-term-vs-your-mortgage-term) term, hoping that if rates drop, they can save sooner - 49% of recently [surveyed](https://www.royallepage.ca/en/realestate/news/a-tale-of-two-markets-real-estate-activity-trending-up-in-canadas-more-affordable-regions-treading-water-in-the-most-expensive/) home buyers plan to [continue](https://www.truenorthmortgage.ca/blog/housing-market-forecast) holding off — though some may find a deal if they *need* to buy now ### Trump's Term vs. Your Term The wavy-haired economic factor is **yanking** the mortgage savings math in all directions. Which **rate and term** is your steadier choice? [**OUTLAST TRUMP'S TERM?**](https://www.truenorthmortgage.ca/blog/trumps-term-vs-your-mortgage-term) --- # Our rate forecast is always right… …is something we would never say out loud. But, we do try — we happily take on this (suspenseful) tug-of-war on behalf of our clients. Forecasting rates is a 50/50 game. That's why we **lay out** the main economic [factors](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) that can push and pull rates, to help keep you in the **know** to see where rates might go. ### **The rate tension is rope-real.** Rates will be a close call over the next few months. What will end up in the **mud** — the economy or inflation? Keep up with CEO Dan Eisner's insights and factoids here. [**REAL-TIME RATE FORECAST 2025**](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) > ### Burly factors that dug in for today's rate pause: > > - Today's pause aims to keep **demand-pull** inflation in [check](https://www.truenorthmortgage.ca/blog/how-trumps-tariffs-could-shape-mortgage-rates-in-2025) as long as possible > - There's not enough immediate data showing economic weakening > - A pause allows the BoC to assess how inflation's pace will behave amid the trade disruptions > > ### Brawny factors pulling towards another rate cut. > > - Demand-pull inflation [cooled](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) in March > - March labour market lost a bigly 33K jobs, and the unemployment rate pulled up to 6.7% > - Tariffs are restraining business expectations for revenue, hiring, and investment > - Big-ticket [spending](https://ca.finance.yahoo.com/news/canadians-cutting-spending-delaying-purchases-154522913.html) plans, including home purchases, are looking pretty frayed > - A recently-higher CDN dollar, lowering oil prices, and higher unemployment are **disinflationary** --- # Dig in. Lean back. Repeat. Here's some helpful mortgage advice and you-should-know news to keep you onside with savings. ### Should you lean into a variable rate? It's the good-old FOMO or JOMO variable-rate decision struggle. What are clients choosing lately? Should you pile on? [**VARIABLE-RATE PULL**](https://www.truenorthmortgage.ca/blog/should-you-choose-a-variable-or-fixed-rate) ### Want to land a better rate? It can start with your score. Here's a breakdown of how mortgage lenders **gauge** your credit score when offering you a rate. [**CREDIT SCORE POWER**](https://www.truenorthmortgage.ca/blog/what-credit-score-to-unlock-lower-mortgage-rates) ### Mortgage stress test losing its grip? OSFI may eliminate the stress test entirely for uninsured mortgages by year-end 2025. But would that help or hurt your mortgage approval? [**MORTGAGE RULE SHIFT?**](https://www.truenorthmortgage.ca/blog/is-mortgage-stress-test-going-away) ### How are mortgage rates set? Come on, you've always wanted to clear up the **mystery** of what pushes and pulls interest rates (and fixed and variable rates). [**PULL BACK THE RATE CURTAIN**](https://www.truenorthmortgage.ca/blog/how-are-mortgage-rates-set) --- > ## **Did you know?** > > **Tug-of-war** dates back to ancient Egypt, Greece, and China, where it was used to train warriors and test strength — basically the original gym membership. --- # You had me at "tug." We're all pull, no chill — every ([rate](https://www.truenorthmortgage.ca/rates)) notch **counts** to help you save thousands. [**CALCULATE RENEWAL PAYMENTS**](https://www.truenorthmortgage.ca/tools/renewal-calculator) --- ## Heels dug, knuckles white — all to help you save. Our expert brokers are **digging in** and leaning back to **steady** the mortgage rope for our clients. We work as a team, hitting that "low-rate" rhythm to bring in the most savings. It's about who lets go last, and that's ***not*** us. (And that's why our brokers don't skip leg day.) We've been here for over 18 years, **pulling out all the stops** for your stress-free process that makes you [cheer](https://www.truenorthmortgage.ca/about-us/reviews) — no matter if your needs are straightforward or more [complex](https://www.truenorthmortgage.ca/mortgage-solutions/complex-mortgages). ## [EASILY APPLY](https://apply.truenorthmortgage.ca) online now **OR** ## [TALK TO A BROKER](https://www.truenorthmortgage.ca/company) in your preferred language [**KNOT YOUR AVERAGE RATE**](https://www.truenorthmortgage.ca/rates) --- ### There's victory in (mortgage) grit: - [Could lower rates help Canada deal with Trump's tariffs?](https://www.truenorthmortgage.ca/blog/how-trumps-tariffs-could-shape-mortgage-rates-in-2025) - [True North rockets growth (with former Rocket Canada brokers)](https://www.truenorthmortgage.ca/blog/rocket-brokers-hired) - [2025 Election Housing Promises](https://www.truenorthmortgage.ca/blog/2025-election-housing-platform-promises) - [How "Canadian" is your mortgage?](https://www.truenorthmortgage.ca/blog/how-to-buy-canadian-when-getting-a-mortgage) - [Set up a renewal reminder now!](https://www.truenorthmortgage.ca/tools/mortgage-renewal-reminder) / /