The Bank of Canada is keeping its key rate at 2.25%. That means borrowing costs aren’t changing for now.
If you have a variable-rate mortgage, your payments probably won’t change immediately. They follow your lender’s prime rate, which moves with the Bank’s rate.
Fixed-rate mortgages aren’t affected today. But when your term ends and you renew, lenders will base your rate on the market. With the Bank holding steady, big drops in rates are unlikely.
The Bank made cuts in 2024 and 2025 to support the economy. Now inflation is closer to their target, so they paused. They might raise rates later, but nothing is certain.
For buyers or homeowners planning to renew, it’s a good time to review your options. Check rates, talk to a lender, and make a plan that fits your budget.
The rate at 2.25% sets the baseline. It doesn’t solve every mortgage question, but it gives you a clear picture of what to expect in 2026.
RE/MAX Canada predicts the housing market is starting to balance out for 2026. They expect sales to grow a little, and buyers are still active even with current mortgage rates. First-time buyers are finding ways to get in, and more homes on the market in some areas are helping slow price increases.
