Bank of Canada Cuts Key Rate to 2.25%: What It Means for Homebuyers and Borrowers in British Columbia
The Bank of Canada’s October 29, 2025 decision to reduce its overnight rate by 25 basis points to 2.25% has renewed optimism among Canadian borrowers. The Bank Rate now stands at 2.50% , and the deposit rate at 2.20% , underscoring that inflation is under control and stimulus is once again on the table. After a 1.6% GDP contraction and a rise in unemployment to 7.1% , policymakers are seeking to stabilize consumer confidence and keep mortgage affordability intact. For homebuyers and investors in British Columbia , especially in Surrey and Abbotsford , this cut represents a critical inflection point. To understand how to take advantage of the new lending climate, Satbir Bhullar Mortgages explains how the change affects renewals, refinancing, and first-time purchases. Why the Bank of Canada Acted Now After a year of subdued exports and trade tension, the BoC lowered rates to sustain spending and offset soft labour data. Inflation is expected to hover around 2%,...