On July 30, 2025, the Bank of Canada announced it will hold its key interest rate at 2.75%, maintaining its current policy stance for the third straight time. While not unexpected, this decision provides a sense of stability in what has been a shifting economic landscape.
So, what does this mean for Toronto real estate right now, especially for buyers and sellers?
For Buyers: Predictability & Opportunity to Plan
With rates holding steady, borrowing costs remain consistent, which gives buyers a clearer picture when planning their next move. Variable-rate mortgage holders won’t see a change, and fixed rates have remained relatively flat in recent weeks.
- More time to plan: With no surprise rate hikes, buyers can take their time assessing the market.
- Room to negotiate: Stable conditions mean less competition in some areas, giving buyers flexibility when making offers.
- Affordability may improve later this year if further rate cuts happen, as many economists expect.
For Sellers: A Window of Market Stability
For sellers, a steady interest rate helps maintain buyer confidence and supports pricing stability across the Toronto market.
- Well-presented listings are still moving, especially in established neighbourhoods and family-friendly pockets of the city.
- Motivated buyers are still active, particularly those who have locked in pre-approvals or are moving up or downsizing.
If you’re thinking of listing, this period of rate stability offers a predictable selling environment before any new changes come in the fall.
What’s Next?
Most experts anticipate that the Bank of Canada may begin lowering rates again as early as September, depending on inflation trends and job market data. If that happens, it could help bring more buyers back into the market and create momentum heading into the fall.
The Bottom Line
The Bank of Canada’s decision to hold at 2.75% signals steady conditions for Toronto real estate. While not a game-changer, it’s a welcome pause that gives both buyers and sellers a chance to move forward with more confidence and less uncertainty.
Do you have questions about what this means for you? Contact us today, we’re ready to help!
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