Whether rates stay the same or start to fall, here’s how to stay ahead with your mortgage strategy. As we move deeper into 2025, the Bank of Canada’s recent decision to hold the key interest rate at 2.75% has left many Canadians wondering: What should I do next? Will rates go down? Should I lock in now? Is this the time to refinance?
At Cannect, we believe the best strategy is to be ready, no matter which way rates move. In this blog, we’ll break down what a rate hold means, what a potential rate cut could bring, and how to position yourself for financial success in either scenario.
What Does a Rate Hold Mean?
When the Bank of Canada holds interest rates steady, it’s a sign of cautious optimism. The economy isn’t hot enough to demand a rate hike, but it’s also not weak enough to require a cut.
For homeowners and buyers, this creates a window of opportunity:
- Mortgage rates remain relatively stable
- Variable rate holders continue paying close to current levels
- Fixed-rate options remain competitive
What you should do:
- If you’re up for renewal soon, now’s a good time to review your options.
- If you’re considering a home equity loan, you’ll benefit from a stable interest environment.
- For investors in Cannect MIC, a stable rate helps maintain predictable returns.
What Happens If Rates Get Cut?
With inflation cooling and economic uncertainty lingering, some experts predict that the Bank of Canada may start cutting rates in the months ahead.
A rate cut could mean:
- Lower monthly payments for variable-rate mortgage holders
- Reduced borrowing costs for home equity loans and lines of credit
- Increased affordability for new homebuyers
But here’s the catch: Waiting for a rate cut could mean missing out on current opportunities. When rates drop, housing prices might rise again, offsetting the savings.
What you should do:
- Consider switching to a variable rate if you’re comfortable with short-term fluctuations and want to benefit from possible drops.
- Refinance or consolidate high-interest debt while rates are still manageable.
- Act fast if you’re planning to invest in real estate — you’ll beat the rush when more buyers jump in post-rate cut.
How to Be Prepared Either Way
At Cannect, our strategy is simple: Plan smart. Stay flexible. Act when it counts.
Here’s how we help you stay ahead:
- Mortgage renewals with the lowest rates and the right advice
- Home equity loans that don’t require jumping through bank hoops
- Expert guidance that puts your financial goals first
- Investments through Cannect MIC, offering consistent returns, even in a changing rate environment
Final Thoughts: Control What You Can
You can’t control what the Bank of Canada does — but you can control how you respond.
Working with a mortgage partner like Cannect ensures that you’re not just reacting to the market, but proactively making choices that serve your long-term financial future.
No matter where rates go, our expert strategies and tools will keep you ahead. Connect with us today.
📞 Ready to review your mortgage or access your home equity?
Contact Cannect for a free consultation — no obligation, just solid advice.
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