2 Sep

Bank of Canada Holds Policy Rate at 2.25%: What It Means for Your Mortgage

Posted by: Charlotte Ferguson

The Bank of Canada maintained its policy interest rate at 2.25% on September 2, 2026. The Bank Rate remains at 2.50%, while the deposit rate remains at 2.20%.

This is the seventh consecutive rate announcement without a change to the policy rate.

While a rate hold may sound uneventful, the decision provides important information for homeowners, buyers and borrowers approaching a mortgage renewal.

Why Did the Bank Hold Its Policy Rate?

The Bank of Canada continues to weigh economic growth against inflation risk.

Canada’s economy has shown strength in areas including consumer spending, housing, exports and business investment. At the same time, higher energy costs, tariffs and global trade uncertainty could affect both inflation and future economic growth.

These opposing pressures make the Bank’s next move less predictable. For now, it has chosen to maintain the current rate while monitoring incoming economic data.

What Does This Mean for Variable-Rate Mortgages?

Variable mortgage rates and home equity lines of credit are generally based on a lender’s prime rate.

Because the Bank of Canada did not change its policy rate, borrowers should not expect this announcement alone to trigger an immediate change to lender prime rates.

For borrowers with adjustable-rate payments, that generally means no immediate payment change resulting from today’s decision. Borrowers with fixed-payment variable mortgages may also see no immediate payment change, although the way principal and interest are allocated will depend on the mortgage contract.

Terms vary considerably, so it is important to review your own mortgage rather than assume every variable product operates in the same way.

What About Fixed Mortgage Rates?

The Bank of Canada does not directly set fixed mortgage rates.

Fixed rates are influenced more heavily by Government of Canada bond yields, lender funding costs, competition and individual borrower qualifications. A policy-rate hold can affect bond-market expectations, but it does not guarantee that advertised fixed mortgage rates will remain unchanged.

This is why the lowest rate displayed online is not always the rate available to every borrower—or the mortgage with the best overall terms.

If Your Mortgage Is Renewing

A rate hold is not a reason to place your renewal letter in a drawer and forget about it.

Before accepting your lender’s offer, review:

The proposed interest rate
Fixed versus variable options
Prepayment privileges
Penalty calculations
Portability
Remaining amortization
Opportunities to consolidate higher-interest debt
Your plans for the property during the next term

Ideally, begin reviewing your renewal approximately four to six months before maturity. That provides time to compare options without being pressured by a deadline.

If You Are Planning to Buy

A mortgage pre-approval is still an important first step, but it should involve more than receiving a maximum purchase price.

A thoughtful mortgage plan considers your comfortable payment, property taxes, heating costs, condominium fees where applicable, closing costs and the effect of possible financial changes.

Approval and affordability are not always the same thing.

Should You Wait for a Rate Cut?

Possibly—but only if waiting supports your broader financial plan.

Future rate reductions are never guaranteed. A lower rate could improve borrowing costs, but it could also encourage more buyers to enter the housing market. Your best decision should be based on the complete picture, not a prediction about a single future announcement.

The Bank of Canada’s next scheduled rate announcement is October 28, 2026.

The Bottom Line

Today’s decision means stability for the moment, not certainty about what comes next.

If you have a variable-rate mortgage, an upcoming renewal, plans to purchase or questions about using your home equity, this is a sensible time to review your options.

Your mortgage strategy should respond to your goals—not simply wait for the Bank of Canada to make the next move.

Contact Charlotte to arrange a personalized mortgage review.

Charlotte Ferguson
Mortgage Agent Level 2, Licence M08009211
Dominion Lending Centres National Ltd. #12360

This article is provided for general educational purposes. Mortgage approval, rates and available products are subject to lender criteria and individual qualification.

9 Apr

Are Interest Rates Finally Settling Down? What It Means for Your Mortgage in 2026

Housing Market

Posted by: Charlotte Ferguson

There’s a question floating around right now that I’m hearing almost daily:

“Are rates finally calming down… or is this just a pause before the next move?”

And honestly? The answer is a little bit of both.

What’s Actually Happening Right Now

Recent economic data has been stronger than expected—especially in the U.S.—which continues to influence Canadian rate direction more than our own domestic numbers.

That matters because strong economic performance typically means:

Inflation sticks around longer
Central banks stay cautious
Rate cuts get pushed further out

So while things feel quieter right now, it’s not necessarily a full “all clear.”

Think of it like this:
👉 Rates aren’t aggressively climbing…
👉 But they’re not in a clear downward trend either

Why This “Pause” Matters More Than You Think

This moment we’re in? It’s what I call a decision window.

We’re likely sitting:

Near the lower end of the current rate cycle
But still exposed to potential upward pressure from global events (inflation, energy costs, geopolitical tensions)

That means waiting could go either way.

And when there’s uncertainty, strategy matters more than timing.

What This Means for You (Real Talk Version)

If You’re Buying

You don’t need to “time the bottom.”

What matters is:

Getting into the market with a solid plan
Structuring your mortgage so you can adapt later

👉 You can always refinance or adjust later
👉 You can’t go back and buy at yesterday’s price

If You’re Renewing Soon

This is where things get real.

Over 1 million mortgages are renewing in 2026–2027—many from ultra-low rates.

That means:

Payment increases are very likely
Planning early = less stress later

Options to consider:

Early rate holds (up to 120 days)
Blend-and-extend strategies
Adjusting amortization for cash flow

If You’re Variable Right Now

You’re probably wondering if you should ride it out or lock in.

Here’s the honest answer:

If rates drop → staying variable wins
If inflation sticks → fixed could protect you

This isn’t about guessing.
It’s about aligning your mortgage with your risk comfort level.

The Bigger Picture (And Why It Matters)

The biggest takeaway from all of this:

👉 We are not in a “rates are crashing down” environment
👉 We are in a “rates are uncertain and reactive” environment

And that changes how you should approach your mortgage.

What Should You Do Right Now?

This is not a “wait and see” market.

It’s a:

Plan ahead
Run the numbers
Stay flexible

kind of market.

Let’s Talk About Your Strategy

Every situation is different—renewal, refinance, purchase, or just “what the heck should I do right now?”

If you’re even a little unsure, let’s map it out together.

📲 Call or text: 519-575-1804
💻 Or start here: https://tinyurl.com/CharlotteFergusonMortgages

Because the best mortgage decisions?
They’re the ones made before the market forces your hand.

18 Mar

Bank of Canada March 2026 rate announcement Slug: bank-of-canada-march-2026-rate-announcement

Bank of Canada Holds Interest Rates in March 2026 — What This Means for Your Mortgage

The latest Bank of Canada rate announcement is in—and as of March 18, 2026, the overnight lending rate remains unchanged at 2.25%.

While this may seem like a non-event, this decision carries important implications for mortgage rates in Canada, refinancing strategies, and home buying decisions.

Let’s break down what’s really happening—and what it means for you.

📊 Why the Bank of Canada Held Rates Steady

The Bank of Canada’s primary goal is to maintain price stability, targeting 2% inflation. While inflation has cooled compared to previous years, it hasn’t fully settled.

Key factors influencing today’s decision:

1. Inflation Is Still a Concern

Even though inflation is closer to target, it remains sensitive to global pressures—especially energy prices.

2. Rising Oil Prices

Ongoing geopolitical tensions have pushed oil prices higher, which can quickly feed into inflation through transportation and goods.

3. Economic Slowdown Signals

Canada’s economy is showing signs of slowing:

Consumer spending is softening
Business investment is cautious
Employment growth is moderating

👉 Holding rates allows the Bank to avoid overcorrecting while monitoring these trends.

🧠 What This Means for Interest Rates in Canada

If you’re watching Canadian mortgage rates, here’s the real takeaway:

The rate environment is stable—but not settled
The Bank is not ready to cut rates yet
Future decisions will depend heavily on inflation data

This creates what we call a “holding pattern market”—where timing and strategy matter more than ever.

🏡 Impact on Variable Rate Mortgages

If you currently have a variable rate mortgage:

✔️ No immediate payment changes
✔️ Prime rate remains unchanged
✔️ Short-term stability continues

However, this doesn’t guarantee long-term stability. If inflation rises again, rate increases could return.

🔒 Impact on Fixed Mortgage Rates

Fixed rates aren’t directly set by the Bank of Canada—they’re influenced by the bond market.

Right now:

Bond yields are fluctuating based on inflation expectations
Fixed rates may move independently of today’s announcement

👉 This is why fixed-rate strategy requires careful timing.

🔄 What This Means for Refinancing in 2026

If you’re considering a mortgage refinance in Canada, this rate hold creates opportunity:

You have time to evaluate options without urgency
You can restructure debt while rates are stable
You can access equity before potential future rate increases

This is especially relevant for homeowners:

Looking to consolidate debt
Planning renovations
Trying to improve monthly cash flow

🏠 What Home Buyers Should Know

If you’re planning to purchase:

✔️ Borrowing costs remain predictable
✔️ Qualification rates remain stable
✔️ Less volatility = better planning

But keep in mind—if rates rise later in 2026, affordability could shift quickly.

🔮 Mortgage Rate Forecast Canada 2026

Looking ahead, here’s what many economists are watching:

Short-term: Continued rate holds likely
Mid-2026: Potential for rate increases if inflation rebounds
Rate cuts: Possible, but not expected immediately

👉 The Bank of Canada is clearly signaling caution.

💬 My Take on the March 2026 Rate Announcement

This isn’t just a pause—it’s a strategic hold.

The Bank of Canada is waiting for clearer signals before making its next move, and that creates a window of opportunity for homeowners and buyers.

If you’re:

Renewing your mortgage
Considering refinancing
Trying to decide between fixed vs variable

This is the time to build a plan—not wait for headlines to change.

📲 Let’s Talk Strategy

Charlotte Ferguson
Level 2 Mortgage Agent (M08009211)
DLC National Ltd #12360 – Guiding Star Mortgage Group
📞 519-575-1804 | ✉️ cferguson@dominionlending.ca
🌐 www.mortgagewithchar.com | 💬 @mortgagewithchar

17 Mar

If the Bank of Canada Is Living Rent-Free in Your Head… Read This

General

Posted by: Charlotte Ferguson

😴 “If the Bank of Canada Is Living Rent-Free in Your Head… Read This”

Be honest…

How many times have you checked for rate updates lately?
Once a week? Once a day? At 2am? 👀

If the Bank of Canada has you feeling like you’re in a situationship with interest rates…
we should talk.

😅 You’re Not Imagining It

Rate uncertainty has been exhausting.

And if you’re in a variable mortgage, you’ve probably felt:

Payment increases
More going to interest
Less going to principal
A general sense of “WHAT is happening?!”

💡 Here’s the Good News

You may not have to keep riding the wave.

There are options to:

Lock into a fixed rate
Stabilize your monthly payments
Create predictability (aka… sleep better)

🧠 It’s Not About Timing the Market

It’s about:

Choosing a strategy that lets you breathe again.

Because peace of mind?
That matters just as much as rate.

🔒 Lock It In (If It Makes Sense)

If you’ve been waiting and watching…
this might be your moment to explore locking in.

Not forever.
Just for now.

💬 Let’s Run the Numbers

No pressure, no commitment—just clarity.

Your All-in-One Mortgage Hub has the solutions you need.

25 Apr

DETERMINING THE BEST MORTGAGE…FOR YOU!

Mortgage Rates

Posted by: Charlotte Ferguson

So you have saved, and saved and you are finally ready to start house hunting…but before you do, there are a few things that you should be looking into BEFORE you start buying. Namely, your mortgage options. Did you know that there are various mortgage products? Or that each mortgage product has it own personality? They Read More