Bank of Canada Holds Rates Steady; Mortgage Stability for Buyers
On July 15, 2026, the Bank of Canada announced that it is holding its interest rate at 2.25%. Variable mortgage rates remain stable while fixed rates edge higher on bond yields.
On July 15, 2026, the Bank of Canada announced that it is holding its interest rate at 2.25%. This is the sixth consecutive hold, signalling the central bank's cautious approach to Canada's economic outlook.
Current Mortgage Rates and Outlook
The best insured 5-year fixed mortgage rate in Canada sits near 3.94% and the best insured 5-year variable near 3.45% as of the week of July 20, 2026. The Bank of Canada held its overnight rate at 2.25% on July 15, keeping variable pricing stable while fixed rates drift upward on rising bond yields.
Consensus forecasts see the Bank holding the policy rate at 2.25% through 2026 before beginning to raise it in the second quarter of 2027, with RBC, for example, projecting a series of quarter-point increases through 2027.
Implications for Newcomers Planning to Buy
If you've lived in Canada for two years and meet lending criteria, the stable rate environment provides a window to lock in fixed-rate mortgages before potential 2027 increases. For renters planning future home ownership, the modest rise in fixed rates suggests acting sooner rather than later. Consider getting a mortgage pre-approval (valid for up to 120 days) to secure today's rates while you search—rates can shift without warning, and the bond market is already pricing in longer-term uncertainty from tariffs and trade negotiations.
Sources
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