What to expect from Wednesday's Bank of Canada interest rate update
How mortgage changes could look
The following hypothetical scenario uses Ratehub.ca’s mortgage payment calculator. The home price used in the example was the average home price in Canada in December, per the Canadian Real Estate Association.
Maha is a homeowner who put a 10% down payment on a $676,640 home. Her five-year variable rate is 4.45%, amortized over 25 years. Her total mortgage is $627,854, and her monthly mortgage payment is $3,458.
fizkes/Shutterstock
If the BoC announces a 25-basis point rate cut, her variable mortgage rate will decrease to 4.20%, and her monthly payment will decrease to $3,371.
Maha will pay $87 less monthly or $1,044 less yearly on her mortgage payments.
Keep up with BoC updates in 2025
Those keen on staying on the pulse of the market should follow the BoC’s X account and look at morning updates on the following dates:
- Wednesday, January 29, 2025 (rate update, monetary policy report, and commentary)
- Wednesday, March 12, 2025 (rate update only)
- Wednesday, April 16, 2025 (rate update, monetary policy report, and commentary)
- Wednesday, June 4, 2025 (rate update only)
- Wednesday, July 30, 2025 (rate update, monetary policy report, and commentary)
- Wednesday, September 17, 2025 (rate update only)
- Wednesday, October 29, 2025 (rate update, monetary policy report, and commentary)
- Wednesday, December 10, 2025 (rate update only)
All announcements typically drop at 9:45 am ET (6:45 am PT). You can also subscribe to email updates.
This article was originally published on January 23, 2025. It has since been updated.