On March 12, 2025, the Bank of Canada announced a further 25-basis-point cut to its policy rate, directly impacting borrowers with variable-rate mortgages. This decision drew media attention, with interviews featuring our mortgage brokers Patrick Maheux and Véronique Caron in outlets such as TVA Nouvelles and Le Journal de Montréal. In this article, we summarize their advice for navigating this economic environment.
The impact of the rate cut on variable rates: good news for some
Patrick Maheux explains that this policy rate cut will have a direct impact on variable-rate mortgages. For example, a borrower with a $300,000 mortgage could save around $40 per month. However, he cautions that fixed rates remain unchanged, as they depend on other factors, including Canadian bond yields.
Patrick recommends that borrowers carefully assess their repayment capacity before choosing between a fixed or variable rate.
Choosing the right rate: fixed or variable based on your financial capacity
For her part, Véronique Caron notes that variable rates are currently around 4.25%, while fixed rates are around 4.09%, depending on the transaction. According to her, the choice of rate will depend on the buyer’s ability to manage financial risk. She strongly advises buyers to consult a mortgage broker to determine the best option based on their budget and borrowing capacity, and not to wait until the last minute to make a decision.
Why work with a mortgage broker?
In this context of falling rates and a competitive real estate market, it is essential to work with a mortgage broker. An expert can guide you through the financing options best suited to your needs, while taking market fluctuations into account.