The Bank of Canada Just Cut Again. Here's What It Means for You.

Hi there,

Big news on September 17th — the Bank of Canada cut its policy rate by another quarter point, bringing it down to 2.50%. That's the seventh cut since this easing cycle started in June 2024, when rates were sitting at 5%. We've now come down 250 basis points in just over a year.

This month: what this cut means for your wallet, why fall is the most important season for renewals, and a quick thank you.

Feature

BoC Drops to 2.50% — What This Means for Different Homeowners

The Bank cited a weakening labour market (unemployment hit 7.1% in August), easing inflation at 1.9%, and the ongoing drag from U.S. tariffs and trade uncertainty. The economy contracted about 1.5% in Q2, and the BoC wants to provide some support heading into fall.

Here's what this means depending on your situation:

If you have a variable-rate mortgage:

Your rate just dropped again. Since June 2024, your rate has fallen 2.5 full percentage points. On a $400,000 mortgage, that's roughly $600/month less than what you were paying at the peak. If you went variable, your patience is paying off in a big way.

If you have a fixed-rate mortgage:

Your current rate doesn't change mid-term. But fixed rates are influenced by bond yields, and they've been trending down. If your renewal is coming up in the next 6–12 months, you're looking at renewing into a much better rate than what was available a year ago. Call me before you sign your bank's renewal offer.

If you're buying:

Your purchasing power just increased. Lower rates mean you qualify for more, and your monthly payments are smaller. If you've been sitting on the sidelines waiting for rates to drop — they've dropped. The fall market has less competition than spring. This is a smart time to move.

The BoC's next decision is October 29th. Many economists expect another cut. If you've been waiting to act — on a purchase, renewal, or refinance — the window is open.

See Today's Alberta Mortgage Rates →

Renewals

Fall Is Renewal Season — Don't Let Your Bank Set the Price

A massive wave of mortgages are coming up for renewal right now. Many of these were locked in at 5-year terms during 2020 and 2021, when rates were historically low. Homeowners are bracing for higher payments.

But here's the thing — rates have come down dramatically over the past year. If your bank sends you a renewal letter, that rate is almost certainly not the best they can do. And it's almost certainly not the best rate available in the market.

Here's what I do for every renewal client:

→ Shop your mortgage across 20+ lenders — including your current bank

→ Negotiate the rate down — often by 0.25% to 0.50% or more

→ Review the fine print — prepayment privileges, portability, penalty structure

→ Tell you if switching lenders makes sense (sometimes it does, sometimes it doesn't)

→ Handle all the paperwork

My service is free — the lender pays my fee. If your renewal is in the next 6 months, call me before you sign anything. A 15-minute conversation could save you thousands.

Read My Renewal Guide →

A Personal Note

Thank You

Quick personal note this month.

Since announcing the move to High River last month, the response has been incredible. I've had so many people reach out — past clients checking in, new conversations started because someone passed my name along, and a few coffee invitations I fully intend to take up.

I want to say a genuine thank you to everyone who's referred a friend, family member, or colleague to me. My business runs on trust and word of mouth. When you tell someone "call Shawn" — that's the highest compliment I can receive. I don't take it lightly, and I make sure every person you send my way gets the same level of care you got.

Here's to a great fall. Talk soon.

— Shawn

Quick Links