The Bank of Canada held rates steady again today. If you follow these announcements, you probably aren’t surprised. But understanding why they held, and what it means for your mortgage going forward, is worth a few minutes of your time.
Watch my video or read on for more details:
Two Forces Pulling in Opposite Directions
The Bank of Canada is always trying to keep inflation close to 2%. Right now, that job is complicated by two competing pressures.
On the inflationary side, you’ve got tariffs and high oil prices driven by ongoing conflict in Iran. Both push costs higher, for goods, shipping, and almost everything. That’s the type of pressure that would normally prompt a rate increase.
On the other side, the economy is slowing. Southern Ontario’s manufacturing and auto sectors are taking a hit from U.S. tariffs, and that drag on growth gives the Bank of Canada reason to hold off on raising rates.
So right now, they’re watching and waiting, trying not to overreact to either side.
What These Rates Mean for Your Mortgage
For now, rates stay where they are. That’s relatively good news for variable-rate mortgage holders, and it means fixed rates aren’t facing immediate upward pressure either.
The risk comes further down the road. If oil prices stay elevated for several more months, inflation could become harder to ignore, and rate increases become more likely. It’s not a certainty — but it’s something to keep in mind when you’re thinking about your mortgage strategy.
What to Do About Your Mortgage Right Now
- If your mortgage is up for renewal in the next 6–12 months, now is a good time to understand your options.
- If you’re buying soon, talk through fixed versus variable rates given the current uncertainty.
- If you’re already in a variable rate, keep an eye on how the inflationary picture develops over the next few months
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.
