On July 30, 2025, the Bank of Canada left its overnight rate unchanged at 2.75%, extending its cautious approach to monetary policy for a third consecutive meeting. The central bank’s statement emphasized a “data‑dependent” stance, keeping the door open for future rate cuts if inflation cools further or economic growth stalls.
For many Canadians—especially homeowners in Abbotsford, Surrey, and Edmonton—this announcement means no immediate changes to mortgage payments for those with variable rates. However, with the Bank signaling potential easing by the end of 2025, this hold could be the calm before a shift in borrowing costs.
The Bank also highlighted ongoing trade uncertainties and sluggish GDP growth (‑0.1% in May with modest recovery in June) as key concerns, suggesting the economy is still adjusting to a post‑pandemic, higher‑cost environment.
What It Means for Homebuyers and Owners
For first‑time buyers, the rate hold provides short‑term predictability in an otherwise volatile market. Mortgage affordability remains stretched in cities like Surrey and Abbotsford, where prices continue to climb, but potential rate cuts later this year could create windows of opportunity.
For homeowners approaching renewal, this hold is a chance to review options carefully. As discussed in our blog on Mortgage Renewals in 2025: How to Navigate Higher Payments Without the Panic, early planning can prevent surprises and help secure more favorable terms—especially if future rate cuts align with your renewal date.
Regional Dynamics: Abbotsford, Surrey & Edmonton
In Abbotsford and Surrey, rapid population growth and limited housing supply have kept pressure on prices. Buyers here often balance long‑term affordability concerns with the need to act before competition heats up further. Creative financing options—such as blended terms or extended amortizations—can make homeownership more accessible in these regions.
Edmonton, by contrast, offers a more balanced housing market with stable prices and increasing supply. For buyers in Alberta, the opportunity lies in securing financing now while keeping an eye on potential rate drops that could further improve affordability later this year.
As we explored in Refinancing in a Lower‑Rate Environment: Is Now the Right Time for BC Homeowners?, Alberta and BC homeowners alike can benefit from exploring refinancing options when rates decline—freeing up cash flow or consolidating debt.
Borrower Preferences Are Shifting
Data from early 2025 shows variable‑rate mortgages making up roughly 41% of new originations, as Canadians bet on future rate cuts. Meanwhile, 3‑ to 5‑year fixed terms remain popular among those seeking balance between stability and flexibility.
For some, short‑term fixed products provide a bridge—locking in predictable payments now while preserving the chance to renew at lower rates in the near future. This approach has become particularly appealing for borrowers who, as we’ve discussed in The Rise of 30‑Year Amortization for First‑Time Buyers, need longer amortizations to manage affordability.
Practical Takeaways for Borrowers
- Review Your Mortgage Structure
Whether you’re in a fixed or variable mortgage, now is the time to assess if your current setup aligns with your financial goals. - Plan Ahead for Renewals
Over 1.5 million Canadian mortgages are set to renew this year, many at significantly higher rates. Acting early can help reduce the financial shock. - Explore Localized Strategies
For buyers in Surrey and Abbotsford, structuring your mortgage with flexibility—shorter terms, hybrid products—can help you adapt if rates drop. Edmonton buyers, meanwhile, can use current stability to negotiate competitive terms. - Work with a Trusted Advisor
At Sandhu & Sran Mortgages, we guide clients through the complexities of a shifting market, providing access to multiple lenders and tailored advice for every scenario.
Actionable Strategies for 2025 Borrowers
- For Variable‑Rate Mortgage Holders
With rates on hold and markets pricing in a potential 0.50% total cut by year‑end, variable‑rate borrowers stand to benefit if the Bank of Canada begins easing this fall. For those who can manage short‑term payment fluctuations, staying variable could result in meaningful savings over the next 12–18 months.
However, for clients seeking more certainty, converting to a short‑term fixed rate (2–3 years) could provide stability without losing the chance to refinance at lower rates later—a strategy we’ve discussed in our post on Fixed vs. Variable Rate Mortgages: Making the Right Choice During Economic Uncertainty.
- For Borrowers Approaching Renewal
If your mortgage term ends in late 2025 or early 2026, don’t wait for the renewal notice. Starting negotiations early can give you access to better rates and flexible terms—especially as lenders compete for business in a changing rate environment.
Renewals are particularly sensitive in markets like Abbotsford and Surrey, where borrowers are juggling higher home prices and tighter budgets. If you’re in this position, working with a mortgage professional can help you structure your renewal to avoid “payment shock”—a topic we covered in detail in Mortgage Renewals in 2025: How to Navigate Higher Payments Without the Panic.
- For Homeowners Considering Refinancing
With rates expected to decline modestly in the coming months, refinancing could unlock opportunities to consolidate high‑interest debt, free up cash flow, or invest in home improvements. In Edmonton, where price stability offers breathing room, refinancing can also be used to access equity for future opportunities—something we explored in Refinancing in a Lower‑Rate Environment: Is Now the Right Time for BC Homeowners?. - For First‑Time Buyers
In high‑demand markets like Surrey, the affordability challenge remains steep. 30‑year amortizations and hybrid mortgage products are becoming increasingly popular among first‑time buyers—tools that help stretch budgets without locking borrowers into long‑term commitments. Our guide on The Rise of 30‑Year Amortization for First‑Time Buyers explores how these products can be used strategically to enter the market.
Regional Considerations: Why Local Strategies Matter
Abbotsford & Surrey:
These communities are grappling with low inventory and high competition. Buyers here should consider pre‑approval strategies and explore alternative lending solutions if traditional lenders cannot meet their affordability needs.
Edmonton:
With steady pricing and improving inventory, Edmonton offers more flexibility for buyers to negotiate favorable terms. If you’re considering upgrading or leveraging home equity for investments, this could be the ideal window.
Quick Scenario Table: How Rate Movements Could Impact Borrowers
| Scenario | What Happens? | Strategy |
| BoC cuts rates by 0.50% by year‑end | Variable mortgage payments decrease; fixed rates trend lower over time | Stay variable or lock into a shorter fixed term later |
| Rates remain at 2.75% | Variable payments unchanged; fixed rates stay stable | Explore hybrid products for flexibility |
| Economic slowdown prompts deeper cuts | Borrowing costs drop significantly; refinancing opportunities grow | Refinance to consolidate debt or access equity |
FAQs
- When is the next Bank of Canada rate announcement?
The next scheduled decision is September 17, 2025. Markets currently price in about a 22% chance of a cut then, rising to over 50% by December. - Should I lock in now or wait?
It depends on your tolerance for risk. If stability matters most, a short‑term fixed mortgage could provide peace of mind. If you can handle some payment variability, staying variable could offer savings if rates drop. - How can I protect myself from payment shock at renewal?
Start planning early. Use strategies like blended terms, extended amortizations, or rate‑hold products to smooth the transition. - Are 30‑year amortizations a good option?
For first‑time buyers or those renewing with stretched budgets, a 30‑year amortization can reduce monthly payments and improve affordability. It’s worth discussing with a mortgage professional to weigh the long‑term trade‑offs. - Can Sandhu & Sran Mortgages help if I’ve been turned down by a bank?
Yes. We work with a wide network of lenders, including those offering alternative and private solutions—helping clients who may not fit traditional lending criteria.
Final Thoughts
With the Bank of Canada holding its rate at 2.75% and signaling flexibility for the months ahead, now is the time to review your mortgage strategy. Whether you’re buying in Surrey, renewing in Abbotsford, or refinancing in Edmonton, understanding your options can protect your financial health and position you for future opportunities.
At Sandhu & Sran Mortgages, we help clients navigate these market shifts with confidence—providing personalized advice, multi‑lender access, and strategies designed for real‑world needs.
Ready to make your next move? Contact us today to discuss your options and secure a mortgage plan that works for you.