Interest Rates March 2025

The Bank of Canada's recent interest rate cut to 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%, could have significant effects on the Montreal real estate market. Lower interest rates typically make borrowing more affordable, potentially boosting demand for housing. Given the solid economic position of Canada in early 2025, with low inflation and strong GDP growth, the rate cut may encourage more people to enter the housing market. Moreover, with signs of an improving market in Montreal, as indicated by a 7-8% increase in volume of sales from February 2024 compared to February 2025, this rate cut could further support the market’s recovery. However, ongoing trade tensions with the United States and other economic uncertainties may still influence long-term market stability.