As of August 2025, the Bank of Canada has once again held its overnight lending rate at 2.75%—a decision that reflects continued confidence in Canada’s economic stability and a steady hand in managing inflation.
But what does this mean for the Ottawa real estate market?
Whether you're a buyer eyeing your first home, a seller hoping to list before fall, or an investor weighing your next move, here’s how this rate pause could affect your strategy—and your bottom line.
Why Interest Rates Matter in Real Estate
Interest rates directly impact mortgage affordability, which in turn affects buyer demand, seller activity, and overall market dynamics.
Lower rates = cheaper borrowing, boosting buyer purchasing power.
Higher rates = increased mortgage costs, potentially cooling buyer activity.
A stable rate = predictability, which is especially valuable in a market adjusting to post-pandemic norms.
For Buyers: More Time, Same Pressure
For Ottawa buyers, the steady rate is a double-edged sword:
The Good News:
Monthly payments stay predictable if you’re locking in a fixed mortgage.
It may signal a plateau in borrowing costs, providing more breathing room.
Sellers are motivated, especially those who expected a summer market surge.
⚠Things to Watch:
Prices in some neighbourhoods are still climbing, especially in desirable areas like Westboro, Findlay Creek, and Kanata.
Inventory is improving, but competition remains strong for move-in-ready homes.
Tip: If you're pre-approved, now is a good time to revisit your numbers—your buying power could stretch a bit further than it did in early 2025.
For Sellers: Stable Rates Mean Strategic Timing
A hold on interest rates means more predictable buyer behaviour, which is good news if you're listing.
Why This Can Work in Your Favour:
Buyers feel more confident making offers when their future payments aren’t climbing.
Open houses are drawing serious interest, especially in areas with good schools or transit.
The August market still sees plenty of activity before the September slowdown.
Seller Strategy:
Price your home competitively and realistically—this is not the bidding war market of 2021.
Focus on presentation: homes that show well are still moving quickly and close to asking.
If you’ve been on the fence about listing, stable rates could give you a window before fall.
What This Means Going Into Fall 2025
The Bank of Canada has signaled it will continue to watch inflation and employment closely—but many economists agree: we may not see major rate hikes or drops in the near term.
For Ottawa, this means:
Buyers have a window of opportunity before potential fall price increases.
Sellers can benefit from buyer stability and growing demand, especially in family-friendly suburbs.
Investors should consider locking in now, while rents remain strong and borrowing costs stable.
Final Thoughts
A steady interest rate may not grab headlines like a cut or a spike—but in real estate, stability is powerful.
It allows buyers to plan with confidence, sellers to price smartly, and investors to act decisively. In a market like Ottawa’s—where population growth, infrastructure, and demand are trending upward—even a “quiet” move by the Bank of Canada is worth paying attention to.
Ready to make a move this August?
Whether you're buying, selling, or investing, let’s talk strategy.
📞 Murtaza Siddiqui, Broker
RE/MAX Hallmark Realty Group
📧 [email protected]
📍 610 Bronson Ave, Ottawa
☎ 613-805-1111
