On October 29, 2025, the Bank of Canada lowered its overnight rate from 2.5% to 2.25%, marking another step toward easing borrowing costs after a period of rate hikes.
What This Means
The Bank noted slower economic growth, easing inflation, and aims to support stability while keeping prices in check. For Islanders, this shift could influence both mortgage rates and market activity heading into winter.
For Buyers
Lower rates often lead to more favourable mortgage terms. If you’ve been waiting to enter the market, now’s a great time to get pre-approved and start watching listings in your price range.
For Sellers
A rate cut can increase buyer demand, helping homes sell faster and closer to the asking price — especially if priced strategically and presented well.
Final Thoughts
This move signals renewed confidence in Canada’s economy and could make real estate more accessible for PEI families. If you’re thinking about buying or selling, let’s chat about how today’s lower rates can work in your favour.
