Bank of Canada Cuts Interest Rate: What It Means for Québec’s Real Estate Market

The Bank of Canada announced a cut to its key interest rate this morning, lowering it from 2.75% to 2.5%. This marks the first decrease since March, and many analysts already expect further reductions by the end of the year. The decision is based on two key observations: inflation appears under control—Canada’s Consumer Price Index rose only 1.9% in August—and the economy is slowing, with GDP contracting and unemployment on the rise.

This rate cut has direct implications for the real estate market, especially in Québec. For buyers, it’s welcome news: lower interest rates generally increase borrowing power and slightly improve affordability. This move could make homeownership more attainable, particularly for first-time buyers who are sensitive to monthly payment changes.

For current homeowners, especially those with variable-rate mortgages or who are due for renewal soon, this shift could mean lower monthly payments. After more than a year of rapid rate hikes that stretched many household budgets, this easing offers some breathing room.

Sellers may also benefit from renewed market momentum. With improved financing conditions, many buyers who had been on the sidelines could re-enter the market this fall. That activity could help stabilize or even boost prices in certain areas—especially suburban markets where supply remains relatively high.

In short, the Bank of Canada’s rate cut marks a turning point for Québec’s real estate landscape. While the impact won’t be immediate or dramatic, it does create a more favorable environment for both buyers and sellers, and may help stimulate residential activity in the coming months.

For any questions about this article or to obtain specific real estate advice, feel free to contact Dominique Marchand, your residential real estate broker at the company Royal LePage Tendance.

Dominique is at your disposal to assist you and answer all your questions about the real estate market in the regions of Montreal and Outremont. Thanks to her in-depth knowledge of these areas, she will be able to guide you effectively, whether you are looking to buy, sell, or simply get an evaluation of your property.

For direct contact, you can reach Dominique Marchand at (514) 621-2116. She is also available by email at dominique@royalepage.ca for professional exchanges.

Visit Dominique's website for more information: dominiquemarchand.ca. There you will find useful resources as well as properties currently on the market in the areas she serves.

Contact Dominique Marchand today for any questions or real estate needs in the regions of Montreal and Outremont. She stands ready to assist you with all your real estate endeavors with expertise and dedication.