Metro Vancouver homeowners eye relief as Bank of Canada cuts key rate again

The Bank of Canada has lowered its key interest rate again, a move that could offer some relief to Vancouver homeowners.

The Bank of Canada has lowered its key interest rate once again — bringing the overnight rate down to 2.25 per cent — a move that could offer at least some relief to Metro Vancouver homeowners squeezed by high prices and steep borrowing costs.

Bank of Canada Governor Tiff Macklem said the cut is meant to help Canadians through “a period of adjustment,” as the country faces slowing growth and new U.S. tariffs.

“U.S. tariffs and trade uncertainty have weakened the Canadian economy,” Macklem said. “We expect very modest growth through the rest of the year, with some pickup in 2026.”

He added that while weaker demand is helping keep price increases in check, tariffs are also driving up business costs.

“The trade conflict is also adding costs for many businesses, putting upward pressure on inflation,” he said. “We have lowered our policy rate by 50 basis points over the last two meetings and by 100 basis points since the start of the year.”

Small but meaningful savings

The central bank’s decision translates immediately to lower payments for anyone with a variable-rate mortgage.

Rebecca Casey, president of the Canadian Mortgage Brokers Association of British Columbia, said the change might sound small, but it adds up quickly.

“Anybody who’s carrying a variable-rate mortgage will feel a reduction of about $13 per $100,000 you owe,” she said. “On a $500,000 mortgage, that’s about $65 a month.”

Casey said the move is also helping rebuild confidence after a long stretch of uncertainty.

“People start feeling a little bit more encouraged to come off of the sidelines, maybe purchase their first home,” she said.

Casey is already seeing more clients reaching out to explore their options and more first-time buyers testing the market after months of hesitation.

A buyer’s market taking shape

In Metro Vancouver’s housing market, Adil Dinani with Royal LePage said the rate cut is landing at a time when listings are high and prices have softened.

“We’re in a buyer’s market here in Greater Vancouver,” he said. “We’re sitting at over 17,000 listings — the first time in over a decade.”

Dinani said buyers now have more leverage, but sellers need to stay realistic.

“This is not a market for aspirational sellers,” he said. “The most motivated seller in the neighbourhood is going to set the new market price for that sub-area.”

That shift, he said, makes accurate pricing and presentation crucial for anyone hoping to sell before year’s end.

Economists say a pause could be next

At the Vancouver School of Economics, Paul Beaudry said the rate cut was widely expected — but the bank’s message stood out.

“What was kind of a bit more of a surprise was how clear they were that they think that that’s where they’ll be stopping for now,” Beaudry said.

He said the central bank appears ready to pause and see how the economy responds before making further moves.

“They think this is enough to kind of let the economy grow slowly out of these difficulties,” Beaudry said.

Beaudry noted that while certain sectors — including manufacturing, steel, and aluminum — are struggling under U.S. tariffs, consumers have so far kept the economy from sliding further.

What’s next?

The Bank of Canada’s next interest rate decision comes Dec. 10.

Macklem said policymakers will be watching how the economy reacts to the recent cuts and whether inflation continues to ease toward its two per cent target.

For Metro Vancouver families, even modest rate relief is welcome news — but experts warn the path ahead still depends heavily on trade tensions and global growth.