The Bank of Canada wrapped up its final interest rate announcement of the year with no surprises; the key rate stays at 2.25%. While this decision was widely expected, it still matters for anyone considering buying a home, renewing a mortgage, or planning their finances for 2026.
So what does a “rate hold” actually mean for you?
Why the Rate Didn’t Move
The Bank of Canada isn’t ready to shake things up. Inflation is easing, the economy is holding steady, and there’s no urgent reason to raise or cut rates right now.
The bank wants stability. And stability is good, especially after the rollercoaster of the past few years.
If You’re Renewing in 2026…
A rate hold brings something every renewing homeowner needs: stability. And even though today’s rates may be higher than they were five years ago, this is actually a great time to start planning your next move.
Here’s the upside:
- You know where rates stand, no surprises.
- Lenders are competing harder for business.
- You have more flexibility to choose a mortgage that fits your goals.
- Cannect can help you secure the lowest possible rate, even when the market feels steady.
Renewal doesn’t have to mean higher stress. With the right strategy, it can be a fresh start for your mortgage, whether that means switching lenders, adjusting your term, exploring a variable option, blending your rate, or tapping into home equity to strengthen your financial position.
How This Impacts Your Mortgage
Payments Stay Predictable (for Now)
If you have a variable-rate mortgage or a line of credit, this rate hold means your payments won’t change today. It’s a small but meaningful sigh of relief for many homeowners.
Fixed Rates Stay in the Same Zone
Fixed rates aren’t directly tied to the Bank of Canada, but they tend to follow bond yields, and those haven’t shifted much. So while fixed rates aren’t dropping dramatically, they’re also not jumping.
No surprises. No sudden jumps. Just a bit of calmness in the mortgage world.
Will This Boost Homebuying?
Not immediately, and that’s okay.
Late-year housing activity is usually quiet, and many buyers are still cautious. But a long stretch of rate stability could help build confidence as we move into early 2026. When people know their borrowing costs won’t change overnight, it’s easier to plan and take action.
Expect a gradual return of buyers in the new year, especially if rates continue to hold.
Regional Differences Still Matter
The rate hold affects the entire country, but not every market reacts the same way. Some regions may see a pickup in demand, while higher-priced areas could continue to adjust. Stability helps everyone, but effects will vary based on supply, affordability, and local trends.
What’s Coming Next?
The Bank is in “wait and see” mode. We’re not expecting immediate cuts, and big hikes aren’t on the table unless the economy surprises everyone. Most experts think rate stability will be the theme heading into 2026.
That’s not exciting, but it is helpful. Predictability is the best gift the mortgage market can get right now.
Thinking About Your Next Move?
Rate decisions can feel complicated, but your mortgage doesn’t have to be. Whether you’re buying, renewing, refinancing, or simply trying to understand what this means for you, Cannect is here to guide you with unbiased advice and the lowest available rates.
Have questions? We’re always here to help you make your next money move count.
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