# BoC Rate Date - October 29, 2025 ![Oct 29](https://d2r7yk1mqahd04.cloudfront.net/images/Oct-29.png) ### October 29, 2025 # One swing, big savings. [Email link](https://mailchi.mp/truenorthmortgage/october-2025-cut-5385098) **October 29, 2025** – The Bank of Canada took another swing, slashing its policy rate by **0.25%** to **2.25%** — the low end of its [neutral range](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast). It's the kind of cut Canadian homeowners will find pleasantly cathartic. Most bank [prime rates](https://www.truenorthmortgage.ca/blog/prime-rate-mortgages-explained) will plunge to **4.45%**, excluding [lender](https://www.truenorthmortgage.ca/about-us/think-financial) discounts on variable rates. --- ## Heard the screams? Those were the rates. If you were a higher rate hiding in a cabin in the woods, you shouldn't have checked out that noise in the tool shed. This October rate cut is a **slasher-movie sequel** to the September cut. It leans into the plot twist no one saw coming: **the loss of U.S. trade certainty** and a mounting body count of economic woes, such as slower growth and rising unemployment. The BoC slash deepens the savings on your [variable-rate](https://www.truenorthmortgage.ca/blog/should-you-choose-a-variable-or-fixed-rate) mortgage and [HELOC](https://www.truenorthmortgage.ca/mortgage-solutions/home-equity-line-of-credit), and has eased tension on new fixed-rate mortgages. --- ## How deep does this latest rate cut go? **For floating variable rate payments:** - Using an example $500K mortgage with an original 25-year amortization — going from a 5-year variable [rate](https://www.truenorthmortgage.ca/rates) of 3.85% to **3.60%** is about **$70 less** interest per month if you have [floating](https://www.truenorthmortgage.ca/blog/adjustable-rate-mortgage-canada) payments. - The past two consecutive rate cuts (a total 0.50% drop) fill your popcorn bowl with an **extra $140** a month. **For fixed variable payments (usually with a big bank):** - Your [amortization](https://www.truenorthmortgage.ca/blog/will-your-variable-rate-payment-drop-when-rates-do) will tick down faster as **more $$$** goes towards your principal and less towards interest. **Fixed-rate mortgages:** - Your rate [stays put](https://www.truenorthmortgage.ca/blog/fixed-rates-dont-change-when-prime-does). But if you're getting a new mortgage soon — whether for a [purchase](https://www.truenorthmortgage.ca/mortgage-solutions/pre-qualify-in-minutes), [renewal](https://www.truenorthmortgage.ca/mortgage-solutions/renewals-transfers), or [refinance](https://www.truenorthmortgage.ca/mortgage-solutions/refinancing-options) — rates recently dropped, which could help you save (mortgage) cash. **[CALCULATE YOUR RATE SAVINGS](https://www.truenorthmortgage.ca/tools/savings-calculator)** --- # When everyone thinks it's over. ## Is the rate-slashing entirely dead? With today's BoC decision, many economists have [declared](https://www.ctvnews.ca/business/article/bank-of-canada-to-cut-interest-rate-once-more-on-oct-29-say-economists/) '**rate-cut season**' finished. The cuts already made will take time to creep through the economy, and some believe the tariff terror will soon fade, bringing clarity for businesses and markets. ### The economic boogeyman may rise again. Yet, ongoing U.S. trade-war threats and tariff pressures keep **resurrecting economic fears**. If inflation stays in check and the economy looks to worsen, **another rate slash** could emerge from the mist. **[ARE RATE CUTS DONE?](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast)** --- ## Unmasking this rate cut: - BoC's current focus is on supporting a weakening economy. - Despite a 2.4% headline [inflation](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) rate in October, the main risk is from tariffs, not overheated demand. - The unemployment rate remains high at 7.1%. - GDP growth is in the basement, where dank things dwell. - Business outlooks give scream-queen vibes — a [recent survey](https://financialpost.com/news/economy/negative-cusma-outcome-biggest-risk-canadian-economy-business-leaders?utm_source=Sailthru&utm_medium=email&utm_campaign=Financial%20Post%20Top%20Stories%20-%20Weekday%202025-10-27&utm_term=FP_HeadlineNews) found that 79% of business respondents expect to reduce their workforce, with 68% needing to pass tariff costs on to customers. ## Lurking in the woods for the next rate date (December 10): - Core inflation is up to 3.1%, above the [BoC's target range](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast). - Government stimulus and spending are expected to add an inflationary [$67B](https://subscriptions.cbc.ca/newsletter_static/messages/mindyourbusiness/2025-10-27/) to the deficit. - Trade uncertainty is currently considered the biggest risk to the Canadian economy. - **North American free trade lies in a shallow grave** — and the new tariff reality is already haunting Canadian companies and consumers. --- # *Get R-rated savings.* ### (That's R for REAL.) ### We advertise rates that most can get. Unlike [rate comparison sites](https://www.truenorthmortgage.ca/blog/mortgage-rate-comparison-sites) that tease ultra-low rates to capture your info, we prefer to keep it real — with lower rates that don't come with [tricks](https://www.truenorthmortgage.ca/blog/mortgage-traps). [Watch the video](https://vimeo.com/1099770779/ddf609ed0f?fl=pl&fe=sh) ## *You've been warned.* ### Expect the best, real rates for your situation to help you save. --- # Shhh, what's that noise? ### It's okay — that was just the 3-year fixed rate subduing other rate choices. One by one, more True North clients disappeared into our great **3-year fixed mortgage rates**, which offer calm shelter and an earlier chance to renew, vs. the more ominous risk of variable-rate changes. This September 2025: - **36%** choose a 3-year fixed - **26%** choose a variable rate (down considerably from earlier in the year) - Only **22%** choose a 5-year fixed (usually, 60% of clients go with this rate stalwart). **[WHICH SHOULD YOU CHOOSE?](https://www.truenorthmortgage.ca/blog/should-you-choose-a-variable-or-fixed-rate)** --- ## With the pluckiness of the last one out, we help you save more. Like the last one standing in every slasher flick, your True North expert broker helps inject **maximum confidence** into your next mortgage moves. Whether your details are straight forward or more [complex](https://www.truenorthmortgage.ca/mortgage-solutions/complex-mortgages) — our exceptional service gives your mortgage budget **the skills to survive** whatever comes knocking. ## [EASILY APPLY](https://apply.truenorthmortgage.ca) online now **OR** ## [TALK TO A BROKER](https://www.truenorthmortgage.ca/company) in your preferred language **[SEE KILLER RATES](https://www.truenorthmortgage.ca/rates)** --- ### That tap on your shoulder? More great advice: - [Is a recession and lower rates lurking under the bed?](https://www.truenorthmortgage.ca/blog/could-a-recession-bring-rates-back-to-rock-bottom) - [Scary mortgage situation? Maybe we can help](https://www.truenorthmortgage.ca/mortgage-solutions/complex-mortgages) - [Got a side hustle going? Non-trad income sources can support your mortgage approval](https://www.truenorthmortgage.ca/blog/mortgage-non-traditional-income) - [Need a fall funds rescue? Ask about a refinance](https://www.truenorthmortgage.ca/blog/refinance-for-funds) - [Trump's term vs. your term — here's what to consider](https://www.truenorthmortgage.ca/blog/trumps-term-vs-your-mortgage-term) / /