The Bank of Canada rate hold for 2025 is here. Last week, the central bank kept the overnight lending rate steady at 2.25%. After two cuts earlier in the year, the Bank has shifted to a more cautious approach heading into the winter. This decision could create ideal conditions for motivated buyers, especially in East Toronto real estate, where buyer-friendly trends continue.
Why This Rate Hold Matters
The Bank’s decision reflects its belief that the current rate is sufficient to maintain inflation near the 2% target. For buyers, this means variable mortgage rates are unlikely to drop much further in the short term. However, they remain attractive, with some five-year variable terms as low as 3.45%.
Meanwhile, fixed mortgage rates are starting to edge higher due to rising bond yields. Ratehub.ca reports that the best fixed rate has increased to 3.89%, translating to higher monthly payments. Buyers should act now to lock in a rate before further increases.
Winter 2026 Brings Buyer-Friendly Conditions
Winter is typically quieter in the housing market, but it also brings opportunity. According to a recent report, the Greater Toronto Area is firmly in buyers’ territory. Homes are taking an average of 56 days to sell, giving buyers more time to make decisions.
In East Toronto neighbourhoods like The Beaches, Birchcliff, and Cliffcrest, active listings are staying on the market longer, which means more negotiating power and less competition for buyers.
Act Now Before the Spring Market Surge
Experts predict that buyer demand will increase in early 2026. That makes this winter a strategic time to explore options, especially with ample inventory and relatively stable mortgage rates. Experts note that affordability is better now than it has been in years, despite economic uncertainty.
If you’re planning to buy, getting pre-approved now will lock in your rate and protect you from future changes in lending conditions. Don’t wait until the spring rush when more buyers enter the market and competition heats up.
What the Bank of Canada Rate Hold Means for You
The Bank of Canada rate hold 2025 offers a timely opening for Toronto home buyers, especially those eyeing East Toronto real estate. With stable rates, longer days on market, and slower competition, this winter could be the perfect time to make your move.
