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.

If this article has piqued your interest and you have questions regarding real estate, do not hesitate to contact Marie-Eve Dufresne, your residential and commercial real estate broker. She will be delighted to help you realize your real estate projects in the regions of Saint-Sulpice, L'Assomption, Repentigny, and Lavaltrie.

Representing the company Royal LePage Patrimoine, Marie-Eve Dufresne is available to answer all your questions and guide you in your real estate transactions with professionalism.

To reach her, you can call her at (514) 679-0810 or write to her at the following email address: marie-eve.dufresne@outlook.com. Also visit her website for more information: www.marie-eveavendu.com.

Do not wait to contact your real estate broker from Royal LePage Patrimoine and benefit from her expertise in the regions of Saint-Sulpice, L'Assomption, Repentigny, and Lavaltrie.