The Bank of Canada held mortgage rates steady on January 28th. The Bank of Canada is still watching inflation closely, and there’s also a lot of uncertainty in the economy right now.
Keep reading or watch my video for more details:
What is The Bank Of Canada Interest Rate?
The Bank of Canada rate is the policy rate that influences short-term borrowing costs in Canada. It doesn’t set your mortgage rate directly, but it impacts lending rates across the system.
In simple terms, when the Bank of Canada rate moves, borrowing costs often move with it over time.
Why Did the Bank of Canada Hold The Interest Rate?
The Bank’s main job is to keep inflation close to 2%. Recent inflation headlines can look noisy month to month, especially when there are one-time factors that make prices look higher or lower than they really are.
That’s why you’ll often hear the Bank talk about waiting for clearer data before making a change.
What the Rate Hold Means For Variable Mortgages
Variable mortgages are the most directly connected to the Bank of Canada rate. When the Bank holds, variable rates typically stay steady as well (unless your lender makes its own pricing changes).
If you’re on a variable rate today, a hold usually means your payment and interest cost should feel fairly stable in the short term.
What the Rate Hold Means For Fixed Mortgage Rates
Fixed mortgage rates don’t follow the Bank of Canada rate one-for-one. They’re more closely tied to bond yields, which move based on expectations for inflation and the broader economy.
A Bank of Canada rate hold can still matter because it shapes expectations. If the market expects “no big moves,” fixed rates often stay within a tighter range.
What Edmonton Homebuyers Should Do Right Now
If you’re heading into the Edmonton spring market, a Bank of Canada rate hold doesn’t replace the basics.
Three simple steps that usually help:
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Get your down payment organized
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Pay down high-interest debt (especially credit cards and lines of credit)
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Get a pre-approval early so you know your price range and what feels comfortable
Whether you are preparing to buy your first home or your fifth, if you’re looking to get pre-approved for a mortgage in Edmonton, fill out my online application. I’m here to help you every step of the way.
About Jason Scott, Edmonton Mortgage Broker
Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’m trusted partner who will help you get the right mortgage for your home or investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.
