The Bank of Canada has held its overnight rate at 5.00% today, October 25. Its new outlook shows the earlier increases are slowing spending, but inflation is not yet coming down steadily enough to promise relief on borrowing costs.
The policy settings
| Measure | Setting | Why it matters |
|---|---|---|
| Target overnight rate | 5.00% | Anchor for the Bank's monetary-policy stance |
| Change at this decision | No change | Most direct signal for variable-rate borrowing |
| Bank Rate | 5.25% | Rate charged on one-day advances to financial institutions |
| Deposit rate | 5.00% | Rate paid on deposits held at the Bank |
Why the Bank makes this choice
Growth and jobs. Consumption, housing demand and business investment are softening, job gains trail labour-force growth and the economy is approaching balance after a long period of excess demand.
Inflation. September CPI is 3.8%; food inflation is easing, but rent, mortgage-interest costs and wage pressure keep core inflation from showing convincing downward momentum.
The policy judgment. After September’s 5.00% hold, the Bank sees clearer evidence that high rates are cooling demand. It expects inflation to average about 3.5% through mid-2024 and return to 2% in 2025. Slow core-inflation progress and higher inflation risks still leave another increase possible.
What changes for borrowers
A hold leaves the Bank's policy setting unchanged; it does not freeze every mortgage quote. Variable products remain anchored to lender prime rates, while fixed offers can still move with bond yields, funding costs, term length and competition.
Because the policy rate does not move, there is no new Bank-driven basis-point change to apply to a balance today. Existing payment pressure remains, and individual lender offers can still change.
When comparing fixed and variable products, look beyond the starting rate. Payment structure, prepayment privileges, portability, penalties and conversion terms affect the cost of changing plans. Ask a lender or licensed mortgage professional to calculate the result for your balance and expected time in the home.
For Greater Sudbury buyers
For a Greater Sudbury purchase, I would check the lender quote you can actually use today. A Bank hold does not pin down a fixed mortgage offer, especially when bond yields are moving. Build the offer around a comfortable payment, leave room for closing costs and repairs, and compare the home with recent relevant sales rather than assuming soft demand makes every asking price fair.
- Refresh the pre-approval and confirm the rate-hold expiry.
- Test the payment at the offered rate and a higher renewal rate.
- Keep closing costs and a repair reserve separate from the down payment.
- Match financing and inspection conditions to the property’s actual risks.
For owners approaching renewal
If you are renewing, today’s hold is useful context but it is not a mortgage offer. I would ask for comparable fixed and variable payment schedules, including the cost of switching lenders and the flexibility you may need during the term. If a longer amortization makes the payment manageable, ask how much more interest it could cost over time.
For sellers
The Bank reports softer housing demand and a more balanced economy. I would expect buyers to scrutinize monthly costs and competing listings. Price a Greater Sudbury home against current relevant sales, disclose its carrying costs and condition clearly, then respond to qualified showing and offer feedback instead of waiting for a rate headline to do the marketing.
What to watch next
I am watching whether core inflation finally starts to fall, not just whether the next headline CPI number moves. The Bank is also weighing wages, inflation expectations and business pricing. A purchase or sale plan should work under today’s borrowing terms while that evidence develops.
Read the official Bank of Canada announcement.
For a local plan, explore the Buyer Experience or Seller Experience. You can also browse the Bank of Canada Decisions & Mortgage Rate Context Archive.
Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage