Bank of Canada holds key interest rate following seven consecutive cuts

Many people are still struggling to find affordable homes in Atlantic Canada.

Canadians weren’t treated to an eighth consecutive interest rate cut from the Bank of Canada Wednesday. The nations central bank held it’s policy rate at 2.75 per cent.

The decision to not make another cut to the number was largely due to the uncertainty surrounding global trade started by tariffs imposed by United States President Donald Trump.

“The future is no clearer,” Bank of Canada Governor Tiff Macklin says about Wednesday’s decision. “We still do not know what tariffs will be imposed, whether they’ll be reduced or escalated, or how long all of this will last.”

The decision to hold the rate at this time does not come as a surprise to those in the real estate business.

Matt Honsberger, president of Royal LePage Atlantic, says for those with a variable rate mortgage, Wednesday’s announcement will have no impact on them, while fixed rate mortgages could see some movement.

“Generally when you see no change, it means that mortgage rates are going to be steady for the next little while,” Honsberger says.

“Honestly, steadiness isn’t a terrible thing either. I would have preferred, obviously, to see rates continue to come down that spur on more activity in housing, but some degree of steadiness out there is not a bad thing either.”

At the start of 2025, Honsberger says the market was hot in Atlantic Canada. He says things have slowed a bit as of late, with many people waiting to see what the tariff impact may be before getting into the market.

In Saint John specifically, rates holding won’t make a difference in the market. The problem in the Port City housing market is demand heavily outweighs supply.

Bob McVicar is a long-time realtor in Saint John. He says most homeowners will average 10 or more offers that are well over the asking prize.

“In the affordable medium price range of, let’s say between $200,000 and $500,000, there’s still multiple offers on just about everything,” says McVicar, noting most sales in Saint John are coming in at eight to 10 per cent above the listed price.

“I wrote an offer two weeks ago and there were 19 competing offers.”

With demand outweighing supply, it’s a difficult time for first-time home buyers to get their foot in the door. One resident told CTV News off camera about a house in her neighbourhood that just sold for over $100,000 more then the asking price.

McVivcar admits he has seen tears from home buyers who are frustrated with the process.

“I have clients that are looking for nine months and 40 or 50 showings and have written eight to 10 offers on different properties before they finally won one,” McVicar said. “So, it’s really discouraging.”

McVicar points out, over the past several years governments have been trying to incentivize developers to build not-for-profit or entry level housing. He says the decision hasn’t been working and it’s time to focus on building affordable homes again.