Rate update dated October 29, 2025.
The Bank of Canada reduced its target for the overnight rate by 0.25 percentage points on October 29, 2025, bringing the target to 2.25%. The rate had also been reduced to 2.50% on September 17, 2025. This article explains why policy-rate changes matter to mortgage and savings-calculator users.
Why the policy rate matters
- Variable-rate mortgages and home-equity products can respond more directly to changes in short-term rates.
- Fixed mortgage rates are influenced by bond yields and lender pricing, so they do not always move by the same amount or at the same time.
- Savings-account and GIC rates can change when market conditions and lender funding costs change.
How to use this information
When comparing mortgage scenarios, use the rate you are actually offered rather than assuming the Bank of Canada policy rate is your mortgage rate. For savings or GIC planning, use the advertised account rate and check whether it is promotional, variable, or fixed.
Compare payments with the Canadian mortgage calculator, review current lender information on our mortgage rates page, and estimate savings growth with the Canadian savings calculator.
The Bank of Canada’s official policy interest-rate table contains the current rate and historical changes. Rates and lender offers can change without notice.