Bank of Canada Rate Announcement Jun 4th, 2025

Josh Perez • June 4, 2025

Bank of Canada holds policy rate at 2¾%.


FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

June 4, 2025


The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%.


Since the April Monetary Policy Report, the US administration has continued to increase and decrease various tariffs. China and the United States have stepped back from extremely high tariffs and bilateral trade negotiations have begun with a number of countries. However, the outcomes of these negotiations are highly uncertain, tariff rates are well above their levels at the beginning of 2025, and new trade actions are still being threatened. Uncertainty remains high.


While the global economy has shown resilience in recent months, this partly reflects a temporary surge in activity to get ahead of tariffs. In the United States, domestic demand remained relatively strong but higher imports pulled down first-quarter GDP. US inflation has ticked down but remains above 2%, with the price effects of tariffs still to come. In Europe, economic growth has been supported by exports, while defence spending is set to increase. China’s economy has slowed as the effects of past fiscal support fade. More recently, high tariffs have begun to curtail Chinese exports to the US. Since the financial market turmoil in April, risk assets have largely recovered and volatility has diminished, although markets remain sensitive to US policy announcements. Oil prices have fluctuated but remain close to their levels at the time of the April MPR.


In Canada, economic growth in the first quarter came in at 2.2%, slightly stronger than the Bank had forecast, while the composition of GDP growth was largely as expected. The pull-forward of exports to the United States and inventory accumulation boosted activity, with final domestic demand roughly flat. Strong spending on machinery and equipment held up growth in business investment by more than expected. Consumption slowed from its very strong fourth-quarter pace, but continued to grow despite a large drop in consumer confidence. Housing activity was down, driven by a sharp contraction in resales. Government spending also declined. The labour market has weakened, particularly in trade-intensive sectors, and unemployment has risen to 6.9%. The economy is expected to be considerably weaker in the second quarter, with the strength in exports and inventories reversing and final domestic demand remaining subdued. 


CPI inflation eased to 1.7% in April, as the elimination of the federal consumer carbon tax reduced inflation by 0.6 percentage points. Excluding taxes, inflation rose 2.3% in April, slightly stronger than the Bank had expected. The Bank’s preferred measures of core inflation, as well as other measures of underlying inflation, moved up. Recent surveys indicate that households continue to expect that tariffs will raise prices and many businesses say they intend to pass on the costs of higher tariffs. The Bank will be watching all these indicators closely to gauge how inflationary pressures are evolving.


With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts. We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs.


Governing Council is proceeding carefully, with particular attention to the risks and uncertainties facing the Canadian economy. These include: the extent to which higher US tariffs reduce demand for Canadian exports; how much this spills over into business investment, employment and household spending; how much and how quickly cost increases are passed on to consumer prices; and how inflation expectations evolve. 


We are focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. We will support economic growth while ensuring inflation remains well controlled.


Information note


The next scheduled date for announcing the overnight rate target is July 30, 2025. The Bank will publish its next MPR at the same time.


Josh Perez
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Best Mortgage Options for Canadian Homebuyers

By Josh Perez • April 8, 2026
Thinking of Calling Your Bank for a Mortgage? Read This First. If you're buying a home or renewing your mortgage, your first instinct might be to call your bank. It's familiar. It's easy. But it might also cost you more than you realize—in money, flexibility, and long-term satisfaction. Before you sign anything, here are four things your bank won’t tell you—and four reasons why working with an independent mortgage professional is the smarter move. 1. Your Bank Offers Limited Mortgage Options Banks can only offer what they sell. So if your financial situation doesn’t fit neatly into their guidelines—or if you’re looking for competitive terms—you might be out of luck. Working with a mortgage broker? You get access to mortgage products from hundreds of lenders : major banks, credit unions, monoline lenders, alternative lenders, B lenders, and even private funds. That means more options, more flexibility, and a much better chance of finding a mortgage that fits you. 2. Bank Reps Are Salespeople—Not Mortgage Strategists Let’s be honest: most bank mortgage reps are trained to sell their employer’s products—not to analyze your financial goals or tailor a long-term mortgage plan. Their job is to generate revenue for the bank. Independent mortgage professionals are different. We’re not tied to one lender—we’re tied to you. Our job is to shop around, negotiate on your behalf, and recommend the mortgage that offers the best balance of rate, terms, and flexibility. And yes, we get paid by the lender—but only after we find you a mortgage that works for your situation. That creates a win-win-win: you get the best deal, we earn our fee, and the lender earns your business. 3. Banks Don’t Lead with Their Best Rate It’s true. Banks often reserve their best rates for those who ask for them—or threaten to walk. And guess what? Most people don’t. Over 50% of Canadians accept the first renewal offer they get by mail. No questions asked. That’s exactly what the banks count on. Mortgage professionals don’t play that game. We start by finding lenders offering competitive rates upfront, and we handle the negotiations for you. There’s no guesswork, no pressure, and no settling for less than you deserve. 4. Bank Mortgages Are Often More Restrictive Than You Think Not all mortgages are created equal. Some come with hidden traps—especially around penalties. Ever heard of a sky-high prepayment charge when someone breaks their mortgage early? That’s often due to something called an Interest Rate Differential (IRD) —and big banks are notorious for using the harshest IRD calculations. When we help you choose a mortgage, we don’t just focus on the interest rate. We look at the whole picture, including: Prepayment privileges Penalty calculations Portability Future flexibility That way, if your life changes, your mortgage won’t become a financial anchor. A Quick Recap What your bank typically offers: Only their own limited mortgage products Sales-focused representatives, not mortgage strategists Default rates that aren’t usually their best Restrictive contracts with high penalties What an independent mortgage professional delivers: Access to over 200 lenders and customized mortgage solutions Personalized advice and long-term financial strategy Competitive rates and terms upfront Transparent, flexible mortgage options designed around your needs Let’s Talk Before You Sign Your mortgage is likely the biggest financial commitment you’ll ever make. So why settle for a one-size-fits-all solution? If you're buying, refinancing, or renewing, I’d love to help you explore your options, explain the fine print, and find a mortgage that truly works for you. Let’s start with a conversation—no pressure, just good advice.

Stop Waiting for the Perfect Time to Buy: A Framework That Actually Works

By Josh Perez • April 3, 2026
Watch the video that inspired this post: Waiting for the perfect time to buy is why most people stay stuck. The Trap That Keeps Buyers on the Sidelines Ask most people why they haven't bought a home yet and you'll hear some version of the same answer: "I'm waiting for the right time." They're watching interest rates. They're tracking home prices. They're waiting for a signal — some clear, unmistakable sign that now is the moment to move. Here's the truth: that signal never comes. Not in the way most people imagine it. The market doesn't send you a notification. There's no headline that reads "Perfect time to buy — act now." And the longer you wait for certainty, the more time passes, the more equity you don't build, and the more rent you pay into someone else's mortgage. Waiting for the perfect time to buy is exactly why most people stay stuck. Why You Can't Time the Market — And Don't Need To Nobody nails the timing. Not investors. Not economists. Not the people who've been watching the market for twenty years. The idea that there's a precise moment when everything aligns perfectly is a myth — and chasing it is one of the most expensive mistakes a buyer can make. What you can do is follow a framework that removes the guesswork. Instead of trying to predict the market, you assess your own situation against three concrete pillars. When all three are in place, the timing question answers itself. The Three-Pillar Framework Pillar 1: Affordability Not what you hope you can stretch into. Not the maximum amount a lender will approve you for. The real, honest monthly payment you can handle without financial stress — with room left over for life. A lot of buyers make the mistake of working backwards from the maximum approval number. That's how you end up house-poor: technically a homeowner, but unable to enjoy any of it because every dollar goes to the mortgage. True affordability means the payment fits your life, not the other way around. Before you start looking at properties, get clear on your number. What monthly payment leaves you comfortable? That's your ceiling — not what the bank says you can borrow. Pillar 2: Stability A mortgage is a long-term commitment. Lenders know this, which is why they scrutinize your employment history and income so closely. But stability isn't just about satisfying a lender — it's about protecting yourself. If your job is secure, your income is consistent, and your financial life isn't in a period of major upheaval, your window is already open. You don't need to be rich. You don't need a perfect credit score. You need a stable foundation that a mortgage can be built on. If your situation is genuinely uncertain — a career change in progress, a major life transition underway — it may make sense to wait until things settle. But if you're stable and simply feeling uncertain because the market feels uncertain, that's a different problem entirely. Pillar 3: Market Fundamentals You don't need to predict where prices are going. You don't need to call the top or the bottom. What you need to assess is whether the market you're buying in has steady demand and whether the carrying costs make sense relative to what you'd pay to rent. In most Ontario markets, the fundamentals have remained strong over the long term. Population growth, limited housing supply, and consistent demand have historically supported property values. That doesn't mean every property in every neighbourhood is a smart buy — but it does mean that a well-chosen purchase in a stable market tends to reward patient owners. When All Three Line Up, Buy This is the framework. It's not complicated, but it is disciplined. When affordability is in place, your situation is stable, and the market fundamentals support a purchase — stop waiting. The timing question has answered itself. Every month you delay in a stable market is a month of appreciation you miss, a month of equity you don't build, and a month of rent that disappears with nothing to show for it. The cost of waiting is real, even when it's invisible. "You're not going to nail the timing. Nobody does. But you can follow a framework that works regardless of what the market's doing." — Josh Perez Apply This to Your Situation The three pillars are straightforward in theory. Applying them to your specific income, credit profile, down payment, and target market is where it gets nuanced — and where working with the right mortgage professional makes all the difference. I've helped over 1,000 people in Ontario work through exactly this kind of analysis. In most cases, buyers are closer to ready than they think. A single conversation is often enough to give you a clear picture of where you stand and what your next step should be.  Ready to stop waiting and start planning? Book your free consultation today and let's apply this framework to your situation.