Today, Jay and I discussed some big news: Bank of Canada Governor Tiff Macklem announced another quarter-point cut to the key interest rate, bringing it down to 2.25%, the lowest since July 2022. This change was highly anticipated over the past six weeks, with many Canadians, especially here in Alberta, wondering how it would affect mortgages and borrowing.

What Was Announced

On our video, Jay started the conversation: “Tiff Macklem just made an announcement about the Bank of Canada’s key interest lending rates. How are you and what can you tell us?”

I replied, “Well, the Bank of Canada cut its interest rate by another quarter percent. This was highly anticipated, and now the bank rate is down to 2.25%. We haven’t seen rates this low since July of 2022.”

For Albertans with variable rate mortgages, this is welcome news. If you’re renewing a fixed-rate mortgage, the downward movement in rates can also benefit you. To put it into perspective, on a $400,000 variable mortgage, monthly payments could drop by roughly $157 per month. While not everyone has the same mortgage size, it gives a useful benchmark.

The Bigger Economic Picture

Of course, low rates are good news for borrowers—but there’s some tough reality to consider. Canada is currently facing high unemployment, over 7% nationally, and certain sectors, including energy in Alberta, are struggling. As I explained: “The manufacturing sector in Ontario is screaming that they’re losing auto manufacturing to the United States. Inflation feels a lot worse than the numbers indicate. If you’ve been at the grocery store recently, prices are going up faster than 2.4%.”

September’s inflation did officially rise to 2.4%, and GDP growth remains sluggish,with negative growth in the third quarter of 2025. The Bank is projecting just over 1% GDP growth over the next couple of years. This means that while borrowers may benefit from lower interest rates, the overall economic climate is still challenging, particularly for those seeking employment.

Opportunities for Alberta Buyers

Jay pointed out an interesting perspective: “History is looking to be repeating itself maybe, and there might be an opportunity coming up here, especially in Alberta for some buyers.” Indeed, if you’re a first-time homebuyer, lower rates could make entering the market more manageable. I also reminded viewers about our first-time homebuyer webinar, which is running again soon. You can reach out to us to get a link and join the session.

Watch the Full Video

For those who want the full discussion, including insights on Alberta’s housing market and what this rate cut means for local buyers, you can watch this video and more on our YouTube channel. For any questions, or to get started on your own homebuying journey, contact me!