Bank of Canada Lowers Interest Rates: What Buyers and Sellers Across Vancouver Island Need to Know

On September 17, 2025, the Bank of Canada reduced its overnight policy rate to 2.5%. This adjustment reflects slower economic growth and easing inflation, but for homebuyers and sellers here in the Comox Valley, Campbell River, and across Vancouver Island, it represents a powerful opportunity in real estate.

Why Did Interest Rates Drop?

The Bank’s decision comes as Canada faces:

A 1.5% GDP decline in Q2
Unemployment rising to 7.1%
Inflation pressures easing

By lowering rates, the Bank of Canada is aiming to support borrowing, stimulate investment, and help stabilize the housing market at a national level, with direct benefits right here on Vancouver Island.

What This Means for Home Buyers in the Comox Valley & Campbell River

Lower interest rates create several advantages for buyers:

✅ Reduced mortgage costs → lower monthly payments
✅ Increased affordability → more buying power in today’s market
✅ Favorable entry point → seize the opportunity before further cuts

If you’ve been waiting for the “right time” to buy a home in the Comox Valley or Campbell River, this rate cut could be the chance you’ve been looking for.

Sellers Benefit from Renewed Demand

Falling interest rates don’t just help buyers. For sellers across Vancouver Island, lower rates often bring more qualified buyers into the market, sparking faster sales and stronger offers. This creates a more dynamic and competitive environment for homeowners looking to list their property this fall.

Vancouver Island Real Estate Outlook

Market watchers expect that if inflation continues to hold steady, the Bank of Canada may cut rates again by year-end, potentially down to 2.25%. With five-year bond yields already trending lower, mortgage rates are likely to follow, supporting activity across the Comox Valley, Campbell River, and Vancouver Island real estate markets.

Ready to Make a Move?

Whether you’re buying, selling, or refinancing, this is the moment to act. With lower borrowing costs, the market is shifting in favor of proactive buyers and sellers who want to take advantage of these conditions.