07/15/2026
The Bank of Canada has announced that the overnight lending rate will remain at 2.25%, marking the 6th consecutive rate hold.
This was a highly anticipated monetary policy announcement and one that mortgage professionals watch closely because it helps us understand not only where we are today, but where things could be headed next.
The latest update showed inflation ticking up by approximately 1%, but Canada's economy continues to show resilience with some encouraging signs of growth. At the same time, ongoing conflict in the Middle East and broader global uncertainty continue to create caution, leading the Bank of Canada to hold steady once again rather than move rates in either direction.
What does this mean for borrowers?
For variable rate mortgage holders, it's another month of stability and, for many of my clients who trusted the strategy along the way, there are definitely some smiles today. 😊
We're still liking variable rate mortgages over here as we may see some small increases in the second half of the year but the expectation is they would temper off into 2027 and the interest cost savings would still be significant in comparison to the current fixed rate terms. As always, the right strategy depends on your goals, timeline, risk tolerance, and overall financial picture. I provide you with the mortgage, you live with it!
If you're wondering how today's announcement impacts your mortgage, renewal, purchase plans, or whether fixed or variable makes more sense for you, let's chat!
