By Josh Tagg, mortgage broker · Mortgages for Less with INDI Mortgage · Calgary, serving all of Alberta ·
On September 17, I joined Jay Lewis to discuss the Bank of Canada’s latest announcement — one that could have an impact on home buyers here in Alberta. For the first time since March, the Bank of Canada cut its interest rate by a quarter percent, and it has left the door open for another cut later this year.
Why did the Bank of Canada cut its rate?
As I explained during the interview, Governor Tiff Macklem cited three main reasons behind the decision:
A soft labour market. “Unemployment is now at 7.1% nationally, the highest since August 2021,” I noted. “It’s especially impacting Ontario’s auto industry, but here in Alberta we’re feeling it too.”
Encouraging inflation numbers. Inflation has eased to 1.9% in August, down from earlier this year. “Core CPI is still just above 3%, but recent trends are encouraging,” I said.
The removal of retaliatory tariffs. Ottawa’s decision to lift tariffs on many imported U.S. goods has helped ease inflationary pressure.
GDP also fell by 1.5% in the second quarter. “If we see another quarter of negative GDP, that’s officially a recession,” I explained. “That would give the Bank of Canada even more reason to cut rates again, provided inflation stays under control.”
Should buyers choose a fixed or variable mortgage?
Jay asked me the question many buyers are wondering: Should you choose a variable or fixed mortgage today?
“Right now, a five-year fixed mortgage is available around 3.99% to 4.25%,” I explained. “Variable is about the same, at 4%. The Bank is likely to cut rates again in December, but if you look at the next five years, you’ll probably end up paying more with a variable than with a fixed.”
| 5-year fixed | Variable | |
|---|---|---|
| Rate quoted | About 3.99% to 4.25% | About 4% |
| Outlook | Locked for the term | Likely to drop if the Bank cuts again in December |
| Josh’s view | Makes more sense for most buyers | Only if you’re confident rates fall quickly, or you’re selling within a year |
In my view, fixed rates make more sense for most buyers today — unless you’re confident that rates will continue to fall quickly or you’re planning to sell your home within a year.
What does the rate cut mean for Alberta buyers?
Lower rates can improve affordability and help with qualifying for a mortgage, but the decision between fixed and variable remains critical. My advice: run the numbers carefully and make sure your mortgage strategy fits your long-term plans.
Where can you watch the full interview?
You can watch my full conversation with Jay Lewis on YouTube here: Watch the video
If you find the video helpful, don’t forget to like, subscribe, and leave a comment. We’d love to hear what topics you’d like us to cover in the future. And don’t be afraid to reach out to me directly with your personal circumstances and home ownership goals.
How an Alberta mortgage broker helps after a rate cut
A rate announcement changes the numbers. A broker turns them into a decision:
- Run fixed and variable side by side over your full term, not just today’s rate.
- Show how a lower rate changes what you can qualify for.
- Match the term to your plans, including if you might sell within a year.
- Shop multiple lenders, including when your bank has said no.
Buying in Alberta this year?
Get your real numbers on fixed and variable before you commit.
Apply Online → Book a Discovery Call → Serving Calgary, Edmonton & all of Alberta · Mortgages for Less with INDI MortgageQuestions about the September 2025 rate cut
Why did the Bank of Canada cut rates in September 2025?
How much did the Bank of Canada cut its rate?
What were fixed and variable mortgage rates after the cut?
Should I choose a fixed or variable mortgage?
Was Canada heading into a recession?
How do lower rates help Alberta home buyers?
This article was written in September 2025, right after the Bank of Canada’s September 17 decision. Rates and forecasts quoted are from that time and have since changed. It is general information for Alberta home buyers, not financial, mortgage, tax or legal advice. Rates, products and qualification rules vary by lender. Please speak with a licensed mortgage professional about your specific circumstances. Mortgages for Less with INDI Mortgage.
