VANCOUVER (January 29, 2025) – The Canadian Mortgage Brokers Association – British Columbia (CMBA-BC) is welcoming today’s decision by Bank of Canada Governor Tiff Macklem to lower the overnight rate by 25 basis points, from 3.25 per cent to 3.0 per cent. This move comes as the central bank grapples with mounting economic uncertainty and the potential economic fallout from U.S. tariffs. The Bank of Canada Governor has also indicated the possibility of further rate reductions in the coming months.
The rate cut is a timely measure to provide financial relief to British Columbians, including mortgage holders and first-time homebuyers, as they face rising affordability challenges and economic volatility. With variable-rate mortgages and Home Equity Lines of Credit set to benefit immediately from the reduced prime lending rate, the announcement offers further breathing room for homeowners and those renewing their mortgages.
“While today’s decision by the Bank of Canada is encouraging, it reflects the precarious state of the economy and the need for further measures to protect Canadians,” said Rebecca Casey, President of CMBA-BC. “Tariff threats and broader economic pressures are fueling uncertainty, and we believe additional rate cuts will be necessary to stabilize the housing market and ensure financial security for British Columbians.”
CMBA-BC has consistently advocated for policy measures that support mortgage holders and homebuyers, particularly during periods of economic instability. Today’s announcement underscores the importance of a supportive interest rate environment, especially as the broader economic outlook remains fragile.
Last month, Canada’s unemployment rate remained stubbornly high at to 6.7%, the second highest reported rate since January 2017 excluding the pandemic. The added strain of potential tariffs from the U.S. further reinforces the need for a responsive and proactive monetary policy to navigate economic headwinds.
“This rate cut is a step in the right direction, but the journey is far from over,” added Casey. “We urge the Bank of Canada to remain responsive to the evolving economic landscape and consider additional rate cuts to support mortgage holders, homebuyers, and the broader economy.”
As economic conditions continue to evolve, CMBA-BC remains steadfast in advocating for the interests of mortgage holders and homebuyers. The association is committed to fostering affordability, stability, and opportunity in British Columbia’s housing market during this time of economic uncertainty.
