💸 Is September 2025 the Right Time to Refinance Your Mortgage?

Introduction

As the Bank of Canada hints at possible rate cuts, many Canadian homeowners are asking the same question — is now the best time to refinance?
With interest rates still above pandemic-era lows but showing early signs of decline, September 2025 might be your window to act before major shifts in the market.

1. The Current Refinancing Landscape

Mortgage refinancing in Canada has become a strategic move in 2025.
While 5-year fixed rates average around 4.79%, homeowners with older loans (5.5% or higher) can still save thousands by switching lenders or shortening their term.

Many borrowers are taking advantage of early renewal options or refinancing to access home equity before the Bank of Canada’s next decision expected later this fall.

3. Why Timing Matters Before the Next BoC Announcement

The next Bank of Canada rate decision is scheduled for October 2025, and many economists expect a 0.25% cut if inflation continues to cool.
Refinancing now lets you lock in a lower rate before lenders adjust pricing, which often happens days after an announcement, not before.

Mortgage brokers at RateShop.ca recommend acting early — rate holds can secure today’s best offers for up to 120 days, protecting you if rates rise again temporarily.

4. Steps to Refinance in Fall 2025

1. Check your current mortgage balance and rate.

2. Compare refinance rates from banks, credit unions, and online lenders.

3. Calculate penalties if breaking your mortgage early (sometimes worth it).

4. Apply for pre-approval and lock your rate before the BoC’s next move.
   

   5. The Bottom Line

   September 2025 could be the most strategic time this year to refinance or tap your home equity. Whether through a HELOC or full refinance, taking action now can secure lower payments and protect your finances ahead of expected market changes.