As the Bank of Canada announces its sixth consecutive interest rate cut, local real estate and mortgage professionals are assessing the impact on buyers, sellers, and homeowners. With inflation hovering around two percent and economic concerns—including the looming threat of U.S. tariffs—affecting market sentiment, the 25-basis-point rate reduction could play a pivotal role in shaping Ontario’s housing market in 2025.
Real estate agent Andrea Stanbridge, who has been in the industry for six years after a career as a legal assistant, and Brooke Lynn, a mortgage agent with nearly six years of experience in the financial sector, share their insights on how the latest rate cut is expected to influence housing affordability, buyer confidence, and financing decisions in the Brant-Brantford region.
According to Stanbridge, lower interest rates typically enhance affordability, particularly for first-time buyers. The latest cut may encourage sidelined buyers to enter the market ahead of the busy spring season. However, she warns that economic uncertainty, including potential U.S. trade tariffs, could temper some of this enthusiasm.
“Lower borrowing costs will make it easier for buyers to qualify for mortgages and afford homes, but many will remain cautious,” she explains. “While this could drive momentum in the spring market, some buyers may still take a wait-and-see approach, using this period to save for a larger down payment rather than rushing into a purchase.”
While a lower interest rate environment is generally positive for real estate, Stanbridge believes broader economic concerns will continue to influence market behavior.
“This rate cut is one piece of the puzzle. Economic uncertainties—like potential tariffs—mean some buyers and sellers may remain hesitant,” she says. “However, those who are ready and financially secure may take advantage of lower rates to act before competition intensifies in the spring.”
She also highlights the potential benefits for sellers: “For those considering listing their homes, this is an opportunity to attract buyers who want to lock in a lower rate before home prices respond to increased demand.”
Stanbridge notes that the rate cut will likely have a more pronounced effect on entry-level homebuyers than on luxury buyers.
“First-time buyers are the most rate-sensitive, so we expect an increase in demand in this segment. However, heightened competition could push prices even higher, maintaining affordability challenges,” she says.
In contrast, luxury buyers, who often rely less on financing, may see minimal impact from the rate cut. “For high-end properties, demand won’t shift significantly. However, it could create opportunities for those looking to upgrade or invest.”
For buyers, Stanbridge recommends staying prepared and securing pre-approvals to move quickly in a potentially competitive market. “Be strategic—focus on homes that meet long-term needs, rather than stretching budgets just because rates are lower.”
For sellers, she advises acting swiftly: “With more buyers expected to enter the market, this could be the right time to sell. Proper pricing and marketing will be key to attracting serious offers.”
Brant-Brantford Real Estate Market: What to Expect
In Brantford and Brant County, the impact of the rate cut is expected to be significant. The region has long been a popular destination for homebuyers from the Greater Toronto Area (GTA), drawn by relatively affordable prices and proximity to major economic hubs.
“More than half of sales in our area are from GTA buyers looking for affordability and convenience,” Stanbridge explains. “With Brantford’s strategic location near the U.S. border, Kitchener-Waterloo, and London, our real estate market remains attractive despite broader economic concerns.”
However, she cautions that uncertainty surrounding U.S. trade policy could influence market conditions. “While lower rates could boost demand, potential tariffs could create hesitation. It’s important for buyers and sellers to stay informed and work with professionals to make sound decisions.”
Brooke Lynn, a mortgage agent with a background in financial services, says the rate cut will improve affordability, but buyers must remain financially disciplined.
“On a $500,000 mortgage, a 0.25% rate cut could reduce monthly payments by about $65 to $75,” she explains. “This might not seem like a dramatic change, but when combined with multiple rate cuts, it signals a trend that can boost buyer confidence.”
She notes that recent changes to mortgage rules—including raising the insured mortgage cap to $1.5 million—are already driving an increase in mortgage applications. “The rate cut is just another incentive for buyers who were waiting for better financing conditions.”
With rates on a downward trajectory, Lynn anticipates a rise in refinancing activity.
“If rates continue to drop, we could see a refinancing wave similar to what happened in 2020-2021,” she says. “Homeowners should evaluate whether refinancing makes sense, considering factors like penalty costs and overall savings.”
For those with fixed mortgages locked in at higher rates, Lynn suggests consulting a mortgage professional to explore options.
“If you’re locked in at around six percent, now is the time to explore refinancing to take advantage of potential savings before the end of your mortgage term.”
Fixed vs. Variable: Which Mortgage Strategy Is Best?
With expectations of further rate cuts in 2025, many borrowers are reconsidering their mortgage strategies.
“We are seeing more clients opt for variable-rate mortgages, as they can lock into a fixed rate later if needed,” Lynn explains. “With the Bank of Canada likely to continue rate reductions, a variable rate might offer more flexibility for those willing to monitor market conditions.”
However, she advises clients to consider their financial situation and risk tolerance before making a decision. “It’s crucial to align your mortgage choice with your long-term plans and financial stability.”
Managing Risk in an Uncertain Economy
Despite falling rates, Lynn warns against overextending budgets.
“Even in a declining rate environment, it’s important to prepare for the unexpected,” she advises. “Low rates won’t last forever. Homeowners should build a financial buffer to protect against potential economic shifts.”
She emphasizes the importance of working with professionals to navigate a dynamic market. “A well-structured mortgage plan can help homeowners take advantage of lower rates while ensuring long-term financial security.”
As the real estate market enters 2025, both Stanbridge and Lynn agree that the sixth consecutive rate cut presents opportunities for buyers, sellers, and homeowners—but with cautionary factors at play.
“Brantford and Brant County remain strong real estate markets due to their location and affordability,” Stanbridge says. “However, external economic conditions will shape how much momentum we see.”
Lynn adds that while mortgage affordability is improving, financial planning remains key. “The best strategy is to be informed, prepared, and adaptable as the market evolves.”
For those considering buying, selling, or refinancing, the advice is clear: work with experienced professionals, stay within financial limits, and keep an eye on economic developments that could influence market conditions in the months ahead.
