The Bank of Canada is holding the interest rate at 2.25%, here’s what that means for the housing market
The Bank of Canada has maintained its key interest rate at 2.25%, which means variable mortgage holders and lines of credit won't see significant changes. Homeowners nearing renewal are advised to consider locking in early as rising bond yields could push fixed rates higher.
The Bank of Canada has kept its key interest rate at 2.25%. This decision was made amid economic uncertainty caused by changing trade relationships and the ongoing U.S.-Iran conflict. The rate maintenance means that variable mortgage holders and lines of credit won't see significant changes. Experts advise homeowners nearing renewal to lock in early as rising bond yields could push fixed rates higher. Many prospective homeowners are opting for fixed-rate mortgages over variable options to avoid uncertainty. The Bank of Canada is watching the impacts of the war, including the effects on oil price increase on inflation.
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