Bank of Canada Holds Rate at 2.25% — What It Means for You

The Bank of Canada announced on July 15, 2026 that it would hold its overnight policy rate at 2.25% — in line with market expectations and consistent with the Bank's ongoing effort to bring inflation sustainably back to its 2% target.

So what does this mean for you as a homeowner or homebuyer in British Columbia?

If you have a variable-rate mortgage: Your rate and payment won't change with this announcement. Variable rates are tied to the prime rate, which moves in lockstep with the Bank of Canada's overnight rate. With rates holding steady, you're staying put.

If you're shopping for a new mortgage: Fixed rates are determined more by the bond market than the overnight rate, and they've been relatively stable. If you're trying to time the market — don't. Nobody can predict rates perfectly. Lock in what you're comfortable with, and remember that a rate hold today doesn't guarantee a hold next time.

If you're renewing: This is still a great time to shop around. Even a 0.25% difference in your rate can mean thousands of dollars over a 5-year term. Don't just auto-renew with your current lender — let me do the shopping for you.

The bigger picture: The Bank of Canada's rate has come down significantly from the peak of 5.00% in mid-2023. We're in a more stable rate environment now, which is good news for affordability. However, rates could move in either direction depending on economic data, inflation, and global conditions.

As always, the best mortgage decision isn't about predicting the market — it's about choosing a product that fits your financial goals, your risk tolerance, and your life. If you want to talk through what the current rate environment means for your specific situation, I'm here.