Montreal, December 10 – The Bank of Canada maintains its key interest rate at 2.25% and ends 2025 without further adjustments to its monetary policy. This decision, influenced by domestic inflation, comes as the Canadian economy shows remarkable resilience in the face of U.S. protectionist measures.
In October 2025, inflation reached 2.2%, the unemployment rate fell to 6.9%, and real GDP grew by 0.6% in the third quarter of the year.
These indicators confirmed to the Bank that inflation remained under control, close to its target, while the labor market was improving and economic growth was rebounding after several quarters of weakness. The Governing Council therefore believes that the current rate is broadly appropriate to keep inflation close to its target.
As outlined in the Bank of Canada’s latest monetary policy statement, the economy is expected to grow at a moderate pace in 2026, following a period of adjustment in the second half of 2025. This dynamic is the result of a combination of subdued inflation and sustained growth in domestic demand.[1]
While major Canadian cities experienced a significant downturn in 2025, recent statistics for the Greater Montreal area confirm the market’s resilience. Despite a slight drop in sales in November 2025 compared to the same period in 2024, there is no cause for alarm. As a trend that has been observed regularly over the past ten years for this same period, demand remains particularly strong.
3,542 residential transactions were recorded in Greater Montreal, which is in line with historical averages for this period. Available inventory, although mainly condominiums, favours buyers, with 18,205 properties for sale, up 7% from November 2024.[2]
Single-family homes: $635,000 (+5.8% year-to-year change)
Plexes (2-5 units): $855,000 (+11% year-to-year change)
Condominiums: $425,000 (0% year-to-year change)
Montreal’s luxury housing market continued to perform strongly in 2025 despite economic volatility. In the first half of the year, sales of residential properties in the luxury segment (listed at $1 million or more) increased by approximately 26% compared to the same period in 2024, totaling 1,086 transactions in this segment, demonstrating sustained interest in high-priced properties.
Of these, 22 exceeded $4 million, a 22% increase over 2024. The sale of an ultra-luxury home, priced at over $10 million, was recorded in the first half of 2025, compared to no sales in this price range during the same period last year.[3]
Stability in the key interest rate at 2.25%, which is expected to remain unchanged for some time, ensures predictable financing conditions for buyers, investors, and homeowners refinancing, as mortgage rates are not likely to fluctuate significantly.
Access to credit remains a key factor, while the residential market, including the luxury segment in Montreal, continues to show sustained demand and relatively stable prices. A large part of real estate activity is driven by returning buyers and are not expected to slow down given their housing needs.
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[1] Bank of Canada keeps key interest rate at 2.25%, press release
[2] APCIQ, Monthly real estate statistics, Greater Montreal, 2025
[3] Centris System. Residential sales recorded in Montreal between January 1, 2025, and June 30, 2025
Montreal, September17 2025 – The Bank of Canada announced a 25 basis point cut to its key interest rate today, bringing it down to 2.50%. This decision marks a turning point for monetary policy after several months of pause[1]. For homebuyers, this cut means credit is a bit more affordable, especially for variable-rate mortgages. For owners […]
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