Bank of Canada Cuts Rate to 2.5%: What It Means for Families in Surrey and Abbotsford

A Shift in Canada’s Mortgage Landscape On September 17, 2025 , the Bank of Canada lowered its policy rate to 2.5% , marking a 25-basis-point cut. This decision comes as Canada grapples with weaker exports, slower growth, and a softer labour market. Inflation is cooling — headline CPI was 1.9% in August — but underlying pressures like housing costs remain sticky. For families in Surrey and Abbotsford , where affordability has been a persistent challenge, this rate cut offers a chance to revisit mortgage strategies. Whether you’re renewing, refinancing, or preparing to buy, the new rate environment shapes both opportunities and risks. To better understand how affordability is measured, see mortgage affordability and its key factors in Canada . What the Rate Cut Means for Borrowers Fixed Mortgages Falling bond yields are pushing fixed mortgage rates lower , with 5-year fixed options now available in the 4.2%–4.6% range . These are the most competitive levels seen ...