# BoC Rate Date - September 17, 2025 ![Sep17](https://d2r7yk1mqahd04.cloudfront.net/images/Sep17.png) ### September 17, 2025 # BoC drops the rate to 2.50%. [Email link](https://mailchi.mp/truenorthmortgage/boc-rate-down-sep-2025-5384980) *September 17, 2025* – The Bank of Canada just flowed low into the downslope, cutting its policy rate **by 0.25% to 2.50%** to support an economic (aka trade) slowdown. Its rate is now a halfpipe, compared to the 5.0% peak (held from July 2023 to June 2024). Most bank prime rates will glide to **4.70%** (not including [lender](https://www.truenorthmortgage.ca/about-us/think-financial) variable-rate discounts off prime). --- ## This kickturn into lower rates is welcome news. It brings some end-of-summer relief for Canadian homeowners looking to save on their mortgage — especially for those with a variable rate or [HELOC](https://www.truenorthmortgage.ca/mortgage-solutions/home-equity-line-of-credit), or [about to buy](https://www.truenorthmortgage.ca/mortgage-solutions/pre-qualify-in-minutes) a home or [renew](https://www.truenorthmortgage.ca/mortgage-solutions/renewals-transfers) their mortgage term. Some economists had forecast no more rate cuts this year (we're looking at you, RBC), and this one comes on the heels of recent slowdown news, despite inflation concerns. **Will the rate shredding continue in 2025?** That's the question of the day (or month or year). Read on. > ### The last time the rate was this low? > On July 13, 2022, the BoC raised its rate by a whole 1.0%, a [quadruple hike](https://www.truenorthmortgage.ca/blog/july-13-rate-increase), to 2.50%. It didn't hang out there for long, reaching 5.0% a year later. --- ## A jolt on a skateboard? Bad. ## A jolt to your savings? Good. **Variable-rate jolt:** About **$70 savings** per month if you have [floating](https://www.truenorthmortgage.ca/blog/adjustable-rate-mortgage-canada) mortgage payments. Or **more $$$** towards your principal if you have a [fixed payment](https://www.truenorthmortgage.ca/blog/mortgage-trigger-rate) variable mortgage (usually with a big bank), as your amortization ticks down. **New fixed-rate jolt:** Technically, fixed rates [don't change](https://www.truenorthmortgage.ca/blog/fixed-rates-dont-change-when-prime-does) when prime does. But for those buying or renewing soon, the 5-year fixed has recently dropped about 0.10%, for nearly **$2,380 in savings** per 5-year term. *Based on our current best-advertised 5-year fixed or variable rate, $500K mortgage, and original 25-year [amortization](https://www.truenorthmortgage.ca/blog/extended-amortizations).* ### Calculate *your* rate savings — or connect with your [expert broker](https://www.truenorthmortgage.ca/company). **[COMPARE LOWER RATES](https://www.truenorthmortgage.ca/tools/savings-calculator)** --- # Lean hard, hold the edge. Canadians are leeeeaning into this latest economic turn, taking it with our knees (it's what the pads are for), not our face — as our nation carves away from a long-standing trade relationship with the U.S., now fraught with tariff turmoil. Stay on board, learn where rates may be headed next in our **2025-2027 Mortgage Rate Forecast** blog. **[RATE CUTS ON THE LINE?](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast)** ### Some factors impacting today's rate drop: - Rate cut comes despite [sticky core inflation](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) over 3% - The BoC is expecting inflation to be tempered by a soft labour market and the removal of counter-tariffs - Unemployment rate hit 7.1%, the highest in 9 years (excluding the pandemic) - Economy contracted at a -1.6% annualized pace in Q2 2025 - Businesses are holding back on hiring and investment, which impacts productivity - Speaking of productivity, business output [dropped by 1%](https://financialpost.com/news/economy/canada-productivity-suffers-biggest-plunge-three-years) in Q2, the sharpest decline since the pandemic - 5-year [bond yields](https://www.truenorthmortgage.ca/blog/how-government-bond-yields-relate-to-mortgage-rates) eased off recent highs, reacting to recessionary signals ### What factors reflect a balanced economy? - Headline inflation around 2.0%, and core inflation between 1% and 3% - Unemployment rate around 6.0% - Monthly job creation of 50K to 60K - Job wage growth rate between 2.5% and 3.5% - GDP annualized growth of 1.5% to 2.0% --- # Sharp curve ahead? ## Amid recession talk, you're wondering if rates could hit rock bottom again. The Bank of Canada rate fell to the floor during the past two recessions. Here's what really has to crack for mortgage rates **to go that low** — and what stands in the way. **[COULD RATES CRASH?](https://www.truenorthmortgage.ca/blog/could-a-recession-bring-rates-back-to-rock-bottom)** --- ## Fixed and variable rate choices are riding side-by-side. **[WHAT RATE SHOULD YOU CHOOSE?](https://www.truenorthmortgage.ca/blog/should-you-choose-a-variable-or-fixed-rate)** --- # Stick your (mortgage) landing with our lower rates. Our expert brokers help you ride away cleanly — to save thousands. **[CALCULATE PAYMENT](https://www.truenorthmortgage.ca/tools/payments-calculator)** | **[GET YOUR BEST RATE](https://apply.truenorthmortgage.ca/apply-online/start)** ## We skate circles around the competition — for your savings win. Your mortgage savings aren't just about your best rate. **Your perfect mortgage fit matters, too**. We put you first, not the lender. We're salaried, non-commissioned, and have access to many lenders and [products](https://www.truenorthmortgage.ca/mortgage-solutions) — freeing you from the obstacles of big bank servitude. The result is thrilled clients and over 16,000 5-star [reviews](https://www.truenorthmortgage.ca/about-us/reviews). Whether your mortgage needs are straightforward or [complex](https://www.truenorthmortgage.ca/mortgage-solutions/complex-mortgages), we care about saving you money, time and stress. ## [EASILY APPLY](https://apply.truenorthmortgage.ca) online now **OR** ## [TALK TO A BROKER](https://www.truenorthmortgage.ca/company) in your preferred language **[WHEELIE GOOD RATES](https://www.truenorthmortgage.ca/rates)** --- ### More board-erline brilliant mortgage advice: - [Trump's term vs your mortgage term](https://www.truenorthmortgage.ca/blog/trumps-term-vs-your-mortgage-term) - [Don't let your renewal date lapse into a higher rate](https://www.truenorthmortgage.ca/blog/renew-it-or-lose-it-mortgage-renewal) - [No comply? Here's how rate sites capture your info](https://www.truenorthmortgage.ca/blog/mortgage-rate-comparison-sites) - [Should you switch at renewal for a better rate?](https://www.truenorthmortgage.ca/blog/renewal-should-you-stay-or-switch-lenders) - [What rate can you carve out for a prefab home?](https://www.truenorthmortgage.ca/blog/prefabricated-home-mortgage-canada) - Want to store your board in your own home? [Check your home affordability](https://www.truenorthmortgage.ca/tools/affordability-calculator) / /