Bank of Canada Keeps Rates Steady at 2.75%
What Happened This March — And What It Means for Buyers and Sellers
If you’ve been keeping an eye on the market or just wondering if now’s the right time to make a move, we’ve got good news. The numbers for March 2025 are in, and they tell a story of a market that’s calming down, balancing out, and giving both Buyers and Sellers new opportunities.
Compared to the fast-paced, competitive scene we saw last year, this spring feels different. There are more homes for sale, some price dips in key areas, and less pressure all around. Whether you’re buying your first home, thinking of moving up, or getting ready to sell, here’s what you should know.
Bank of Canada Keeps Rates Steady at 2.75%
The Bank of Canada announced today, April 16, 2025, that it is keeping the key interest rate at 2.75%, ending a streak of seven straight monthly rate cuts.
This decision was made during a time when there is a lot of uncertainty around the global economy—mainly because of new tariffs and changing trade policies in the U.S. In the Bank’s words: “Forecasts for economic growth are of little use as a guide to anything.”
So instead of offering one prediction, the Bank gave two possible scenarios. In both, the future will depend heavily on how global trade issues play out.But here’s the good news: even with these challenges, Ottawa’s real estate market continues to stay strong, and this pause in rates brings some stability at a time when many people were waiting for more clarity.
What Is the Bank of Canada Interest Rate?
The interest rate set by the Bank of Canada affects how much it costs to borrow money including for mortgages. When the Bank raises or lowers this rate, lenders usually change their rates too.
By keeping the rate steady at 2.75%, the Bank is giving Canadians a bit of breathing room. It means we likely won’t see a sudden jump in mortgage rates for now.
Why Did the Bank Pause After So Many Cuts?
Since last summer, the Bank has been lowering interest rates every month to help the economy. But with trade tensions and other countries also slowing down, it’s now being more careful.
Governor Tiff Macklem said: “We are prepared to act decisively if incoming information points clearly in one direction.” In simple terms, they’re waiting to see what happens next before making another move.
What Does This Mean for Buyers in Ottawa?
If you’re planning to buy a home in Ottawa, this is a time to stay positive and be prepared.
Here’s how the rate hold can help you:
- Mortgage rates may stay low for a while, making monthly payments easier.
- More homes are hitting the market this season, giving you more choices.
- Lenders and brokers have more clarity, so it’s a good time to get pre-approved and lock in a rate.
Even with the news about inflation and global markets, this pause gives buyers the chance to make clear, confident decisions.
What Should Ottawa Sellers Know Right Now?
For homeowners looking to sell, this is also encouraging news.
- A stable interest rate means buyers are still motivated.
- Spring and early summer are busy seasons for real estate, so listing now could attract serious interest.
- Even if the economy is slowing, housing demand in Ottawa stays strong, especially in family-friendly and central neighborhoods.
Sellers can feel reassured knowing that rates aren’t going up right away, which helps keep demand steady.
What’s Next? Will Rates Go Up or Down?
The Bank of Canada didn’t give a timeline for future rate changes. Instead, they’re watching how things unfold—especially with U.S. trade talks, inflation, and job growth.
They said: “There is an unusual degree of uncertainty… We will proceed carefully.”
So while nothing is certain, for now, the message is simple: no sudden changes, and Canadians can plan ahead with a little more peace of mind.
Ottawa Remains a Resilient Market
Even with global concerns, Ottawa continues to be one of the most stable real estate markets in Canada. Strong public sector jobs, solid infrastructure, and steady demand for housing all help to protect the local market.
At PREMIER, we’ve seen firsthand how buyers and sellers succeed when they have the right support—especially during times like this.
Let’s Talk About Your Next Step
Whether you’re thinking about buying your first home, selling your current one, or just want to talk about what’s going on in the market, we’re here to help.
We’ll walk you through the numbers, explain what the latest interest rate means for you, and help you make a plan that feels right.
Reach out to us today! We’re just a call, message, or email away.
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For more information and personalized guidance on navigating today’s housing market, contact PREMIER Real Estate today!
