The Bank of Canada dropped their overnight rate today by .25%, meaning that the bank prime rate, which affects variable rate mortgages, is now at 4.70%. We could see another .25% drop in late October, however the Bank will be monitoring inflation closely and it's not a sure thing as inflation remains near the upper end of the bank's preferred range.

Canada has lost almost 100,000 jobs in the last two months. This was the main factor in the Bank's decision as the effects of the new tariffs are starting to take a toll on our economy.

Bond yields, which directly affect fixed rate mortgages, are down .30% over the last month, but we haven't yet seen a corresponding drop in the fixed rates. Banks love to make money, and with most of them having a fiscal year end of October 31st, I think they are doing their best to keep their shareholders happy.

The Canadian real estate market had it busiest August in four years, and this seems like a good sign, but in most major markets, prices are down from last year.

As I have said before, the word of 2025 is 'uncertainty'. I will do my best to keep you updated as we navigate through this uncharted territory.

As always, please call or email me anytime if you have questions about your mortgage. And please feel free to share these updates. I get asked these questions every day so I know there are a lot of people out there looking for direction.

Many thanks,...Patrick

905-299-4665