The Bank Held Rates - Here’s What That Means for Toronto Buyers and Sellers in 2025

By Karly – Real Estate Representative in Toronto

April 2025 Update: The Bank of Canada Holds at 2.75%

On April 16, 2025, the Bank of Canada chose to hold the policy rate steady at 2.75%, following seven consecutive cuts since June 2024.

Why no change this time?

✔️ Inflation is stable around 2%

✔️ Ongoing trade tension with the U.S.

✔️ Caution heading into mid-year market activity

This decision keeps borrowing conditions favorable — but it also signals that now’s the moment to act strategically, whether you’re buying, selling, or still deciding.

What This Means for You

If You’re Buying:

• Mortgage rates remain attractive, giving you more purchasing power than you had a year ago.

• Competition is returning, especially in high-demand areas.

• If rates drop again in June, expect a flood of buyers — and less negotiating power.

  
  

If You’re Selling:

• More buyers are stepping in now that rate cuts have created confidence.

• Strategic pricing is key — homes priced right are selling fast.

• Prepare now (photos, staging, paperwork) so you’re ready to list when the next wave hits.

What My Clients in Toronto Are Really Asking Me (And What I Tell Them)

“Karly, I have $60,000 saved. What can I afford?”

With $60K down, you could be in the market for a $550K–$600K home, depending on your income and debts. That might mean a condo in the city or a starter townhome outside the core. Mortgage payments at today’s rates? Around $2,800–$3,200/month. Want to break it down together? I’ve got you.

“Karly, I’ve found the perfect home. Should I act now or wait?”

If the home fits your life and your budget, now is a smart time to act. Rates are still low, and buyer traffic is picking up. Waiting could mean more competition or higher sale prices — especially if the Bank cuts again.

“Karly, I’m renting a 2-bedroom for $2,500. Should I keep renting or try to buy?”

If you're already paying $2,500/month, you're in the range of many first-time buyers. With even a 5% down payment and a stable income, you could own instead of rent — and start building equity.

“Karly, I want to help my daughter buy her first place. What can I do without risking my finances?”

You’ve got options:

• 💸 Gift part of the down payment

• ✍️ Co-sign the mortgage

• 🏘️ Buy together and build equity as a family

Let’s explore the best way for you to support her without overextending yourself.

“Karly, I’m self-employed. My income looks low on paper. Do I still have a chance?”

Yes, you do! Many lenders offer alternative documentation mortgages for entrepreneurs. If you’ve filed at least 2 years of taxes or have strong bank statements, you’re in the game. Let’s prep properly.

“Karly, I’m going through a separation. Can I buy on my own?”

Absolutely. Many people start fresh on their own. If you’ve got stable income and manageable debts, we can build a plan that fits your new chapter. You’re not alone — and I’m here to help guide it with care.

What’s Coming Next

If the Bank cuts again in June, we may see:

• 🔥 More competition

• 💬 Faster sales

• 🧾 Less room to negotiate

  
  

If they hold again:

• 🧘 Market stability continues

• ⏳ You get a quieter window to act

  
  

Either way, what you don’t want to do is sit back and wait with no plan. Now is the time to prepare, get pre-approved, and know your real options.

Bottom Line

Toronto’s market is shifting — and people are moving with it. Whether you're buying your first home, planning to sell, or just trying to understand how far your savings can go, you don’t need to figure it out alone.

Let’s build your strategy now so you’re ready, not rushed.

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📲 DM me, text me, or send a quick email — even if it’s just to ask, “Where do I start?”

Next update coming after the Bank of Canada’s June decision. Until then, stay ready — and stay connected.