As of July 30, 2025, the Bank of Canada kept its benchmark rate steady at 2.75% for the third consecutive meeting. But the conversation is far from over. According to the Bank’s own deliberation summary, policymakers did consider another quarter-point cut — and that decision is sparking plenty of debate in financial circles.
At Lendworth, we’re watching this closely because these rate decisions directly affect mortgage borrowers, investors, and the broader Toronto real estate market.
Let’s break it down.
📉 Why Rate Cuts Might Be on Pause (For Now)
Following seven rate cuts between June 2024 and March 2025, policymakers are now debating whether they’ve gone far enough — or too far. Some members of the Bank's governing council believe that the full impact of past rate cuts is still working its way through the economy, and further easing could risk reigniting inflation.
With U.S. tariffs on Canadian exports rising — now at 35% for many goods — the Bank wants to help the economy absorb the hit. But it’s also wary of cutting rates too much and fueling price pressures again.
In short: The Bank is walking a tightrope between stimulating the economy and keeping inflation at bay.
🔍 What This Means for You
Whether you’re a homeowner, a real estate investor, or just watching the market, the Bank’s cautious tone reveals a few key things:
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Mortgage rates may stay low — but not forever.
The 2.75% policy rate is already considered “neutral,” meaning it’s not overly stimulative or restrictive. Future cuts are not guaranteed, especially if inflation resurfaces. -
Demand-side inflation risks remain.
If borrowing becomes too cheap and demand rebounds faster than supply, we could see upward pressure on prices — again. -
Private lending remains a powerful tool.
Traditional lenders may stay hesitant amid uncertainty. That’s where Lendworth steps in, offering equity-based private mortgage solutions when others say no.
💼 How Lendworth Can Help in a Volatile Environment
In a market where policymakers are uncertain and banks are cautious, alternative lending is thriving.
Lendworth specializes in non-bank mortgages, refinancing, and construction loans tailored to real people and real opportunities:
✅ Fast equity-based approvals
✅ Flexible terms for home renovations, debt consolidation, or second mortgages
✅ Mortgages for self-employed or credit-challenged borrowers
✅ Private investments in real estate-backed loans through Lendworth MIC
✅ Registered fund-eligible investments (TFSA, RRSP, LIRA)
We’re not waiting on the next Bank of Canada decision — and you shouldn’t either.
📆 What’s Next?
The Bank of Canada will have July and August inflation data before its next decision on September 17, 2025.
Desjardins economists say another cut is still possible this fall — but market bets currently show a 67% chance of a rate hold. That uncertainty is a signal to act now, not wait.
🔑 Bottom Line
While the Bank of Canada remains split on more rate cuts, one thing is clear: interest rates are historically low, and smart borrowers and investors are using this time to refinance, restructure debt, and invest strategically.
Whether you're:
- A homeowner looking to access equity,
- An investor seeking passive income, or
- A builder navigating the GTA housing market…
Lendworth Canada has your back.
📞 Call us today at 905-597-1225
🌐 Visit www.lendworth.ca
💬 Or email info@lendworth.ca to speak with a lending specialist.