Bank of Canada Rate Drop: What It Means for Ottawa Real Estate

The Bank of Canada just lowered its key interest rate to 2.25%, marking its second consecutive cut. For Ottawa’s real estate market, this move could create new opportunities for both buyers and sellers.

Why It Happened

The Bank made this move to support the slowing economy while keeping inflation near its 2% target. Borrowing is now a little cheaper, which could encourage more activity in the housing market.

For Home Buyers

If you’ve been waiting for the right time to buy, this could be it.

• Variable rates may drop, lowering monthly payments.

• Affordability could improve, giving you more buying power.

• Confidence may rise as more buyers re-enter the market.

Still, every situation is different. Talk to your mortgage professional to understand what this rate drop means for your own financing.

For Home Sellers

Lower rates can attract more buyers and increase competition, which is good news if you’re planning to sell.

• Expect more showings and stronger offers.

• If you’re selling and buying again, you could benefit from lower borrowing costs.

• Use this time to prepare your home and price it strategically.

What It Means for Ottawa

From Orleans to Rockland, Russell, and Kanata, inventory remains higher than in past years. Lower rates could help balance things out as more buyers start searching again. Well-priced homes will attract attention, especially in desirable neighbourhoods.

Looking Ahead

The Bank of Canada hinted that this could be the end of the rate-cutting cycle, so stability may be returning. Whether you’re buying, selling, or renewing your mortgage, this is the time to review your options and plan ahead.