The Bank of Canada cut the policy rate by 25 bps to 2.25% today. Canada’s big banks (e.g., TD) are dropping prime to 4.45% effective Oct 30, which affects variable mortgages and HELOCs almost immediately. Fixed rates don’t follow the policy rate directly; they’re influenced by bond yields, so lender pricing may adjust in the coming days, or even weeks. If you’re renewing and uninsured, you can switch lenders at maturity without re-stress-testing (straight-switch exemption)—that can sharpen offers. Let’s walk through what that means in real monthly dollars for real people in Edmonton. (Bank of Canada)
What changed, and why it matters here
The Bank of Canada lowered the overnight rate to 2.25% and signalled it sees policy as appropriately set for now amid a softer growth backdrop. That single line translates into lower bank prime (what variables and HELOCs ride on) and, often, a small confidence bump for buyers who have been waiting for better cash-flow math. In Edmonton—where price points are still approachable compared with other major Canadian markets—even a 0.25% move can pull fence-sitters into the search. (Bank of Canada)
Fixed vs. variable: how the cut flows through to you
Variable / adjustable mortgages & HELOCs: When banks cut prime (TD has already moved to 4.45% effective Oct 30), your rate and interest costs drop in step once the change hits your account. If you’re on a true adjustable payment, the payment itself can fall; with static-payment variables, more of your payment goes to principal. Watch your lender notice for the exact effective date. (TD Stories)
Fixed mortgages: Lenders price fixed terms off Government of Canada bond yields, not the BoC rate. Bond desks will digest today’s message; if yields move, lenders may re-price fixed mortgages. That’s why you sometimes see fixed changes within days of a BoC decision rather than the same afternoon. (nesto.ca)
The Edmonton lens: buyers, sellers, homeowners (and investors)
Buyers: A quarter-point cut isn’t earth-shattering, but it’s tangible. A quick rule of thumb: ~$21/month per $100,000 of mortgage (interest component) on a variable product is what you can expect. On $450,000, that’s roughly $95/month back in your pocket once new prime takes effect. In communities like Edgemont, The Hamptons, Rosenthal, Glenridding and Secord, that small win can be the difference between “thinking about it” and writing an offer. Update your pre-approval right away so your payment and rate-hold reflect post-cut pricing.
Sellers: Expect a slightly deeper buyer pool and stronger early-weekend traffic on well-priced listings—especially in entry-level detached and townhomes. But remember: a rate cut won’t rescue over-pricing. Your first 7–10 days still make or break the sale. Presentation (staging, pro media, floorplans, drone), plus pricing to the last 2–3 weeks of comps, is how you capture the extra demand.
Homeowners not moving (renewals & Home Equity LOCs): If your renewal is within 6–12 months, start shopping the file. Thanks to OSFI’s straight-switch exemption, uninsured borrowers can switch lenders at maturity without the prescribed stress-test—which often means better offers for you without re-qualifying hoops (so long as balance and amortization stay the same). HELOC and variable borrowers should see the prime change reflected from their lender’s effective date (e.g., Oct 30 for TD). (OSFI)
Investors: Lower carrying costs can nudge your DSCR (Debt Service Coverage Ratio)in the right direction for suited homes and newer duplexes, but underwrite conservatively—rents, vacancy, and maintenance still drive the outcome. If you’ve been on the fence about a refinance to improve cash flow or fund upgrades, today’s move is a good prompt to reassess with current pricing.
Real-world math
Think in monthly cash flow, not just rates. On a $500,000 variable mortgage, a 0.25% cut is roughly $105/month in interest savings at today’s prime once it flows through (your exact payment behavior depends on whether your variable is adjustable or static). Redirect even half of that into lump-sum prepayments or winter maintenance (furnace service, insulation tune-ups, roof checks) and you’re building equity and protecting the asset—very “Edmonton-smart” during the cold months.
What to do next (your simple action plan)
Buyers: Refresh your pre-approval and payment model today; keep both fixed and variable scenarios on the table until you’re writing. Shortlist the neighbourhoods that match your day-to-day (schools, trails, commute), then hunt for “good bones” before “flashy features.”
Sellers: Price to the current market (not last quarter) and launch like a product: staging, pro visuals, a strong first-weekend strategy. A pre-listing inspection can reduce renegotiations and help justify your price.
Homeowners: Call your lender—or ask me for intros—to discuss early renewal, blend-and-extend, or a switch at maturity. Re-balance your budget: top up the emergency fund, tidy higher-interest debt, or make a smart prepayment.
FAQ
Did my rate drop today?
Variables/HELOCs: Yes, from your lender’s effective date (e.g., Oct 30 at TD). Fixed: not directly; watch for bond-driven lender re-pricing over the next few days. If you’re on a fixed rate, the numbers will be driven by the bond market and will not be impacted directly. (TD Stories)
So… fixed or variable?
It depends on timeline, income stability, and your “sleep-at-night” factor. We’ll model both paths for your budget and risk comfort, then align product choice with your next 3–5 years.
What’s the “stress-test” situation at renewal?
For uninsured straight-switch renewals (same balance and amortization), OSFI no longer prescribes the MQR—which makes true comparison shopping at maturity easier. If you’re changing the loan amount or amortization, you’re back in full qualification territory. (OSFI)
Will Edmonton see bidding wars again because of this?
Cuts can heat up popular price bands, but strategy still beats luck. The homes that sell fastest are the ones that are priced right and marketed properly—not just the ones on the market during a rate cut.
How long will this last?
The Bank signalled rates are appropriately set for now and is watching the data. Translation: don’t build a plan that only works if rates keep falling—make sure your numbers stand even if things wobble. (Reuters)
Sources
Bank of Canada decision: policy rate cut to 2.25% (Oct 29, 2025). (Bank of Canada)
TD prime cut to 4.45% effective Oct 30, 2025. (TD Stories)
Fixed vs. bond yields (how lenders price fixed terms). (nesto.ca)
OSFI: straight-switch exemption for uninsured renewals (no prescribed MQR). (OSFI)
Context/market tone (post-decision coverage). (Reuters)
Let’s put this to work for you
If you’re buying in West Edmonton, selling anywhere in the city, or renewing soon, let’s run your numbers with today’s rates and map a step-by-step plan. I’ll also connect you with a top Edmonton mortgage broker so you can compare fixed vs. variable, renewal vs. switch, and timing options—without sales pressure.
DM me on Instagram: @pabianrealty or head to PabianRealty.ca to book a quick strategy call. We’ll make the next move your best one yet.
