The Bank of Canada interest rate affects every variable and adjustable mortgage in Canada, and it has a big impact on your plans if you live in Edmonton. With another announcement coming in December, a lot of people are wondering what happens next, here’s what it could mean for your mortgage decisions.

Keep reading or watch my video for more details:

Recent Bank Of Canada Interest Rate Cuts

Earlier this year the Bank of Canada interest rate started to move down after a long pause. That was welcome news for anyone in a variable or adjustable rate mortgage who had been dealing with higher payments. Each cut takes some pressure off monthly cash flow and sends a general signal that policy is shifting away from the peak.

Even with those moves, we are still at a Bank of Canada interest rate level that is higher than what many people got used to during the pandemic years. So it helps, but it does not feel like a return to ultra cheap money, and I don’t expect that environment to come back any time soon.

Why I Don’t Expect Another Interest Rate Cut In December

I do not expect another Bank of Canada interest rate cut at the December announcement. We have already had a couple of cuts, and the Bank needs time to see how those work through the economy. They always try to balance two things at once: keeping inflation under control and not pushing the economy too hard in either direction.

Right now inflation has cooled from the highs but is still something they have to monitor. At the same time, there are signs the economy is slowing. That is exactly the sort of environment where a pause in the Bank of Canada interest rate makes sense. They will let the data catch up, then decide what to do in 2026.

What The Interest Rate Means For Your Mortgage

If you are already in a fixed rate mortgage, the Bank of Canada interest rate does not change your payment during your term. Your fixed rate is tied more closely to the bond market and those rates move on expectations about future inflation and growth. The cuts we have already seen were mostly priced in.

If you are in a variable or adjustable rate mortgage, the Bank of Canada interest rate is the main driver. When the Bank cut earlier this year, your interest rate moved down. With a pause in December, I would expect things to hold steady for a while. That is part of why I’m telling clients not to count on another immediate drop, even though everyone would like to see lower payments.

For people choosing between fixed and variable today, the current interest rate and the size of the gap between fixed and variable options are both important. A small gap and an uncertain outlook often push more people toward fixed for peace of mind, especially if the budget is tight.

How To Plan Around The Bank Of Canada Rate In Edmonton

In Edmonton we are lucky to still have relatively affordable housing compared to other big Canadian cities. Even so, the interest rate plays a big role in what you can qualify for and how comfortable your payments feel. If you are hoping to buy this fall or early next year, it is smart to plan based on today’s rate environment, not on a wish that rates will drop again right away.

Getting pre approved with a rate hold can protect you if rates move, and it also gives us time to look at different scenarios. We can compare what your mortgage would look like if the Bank of Canada interest rate stays where it is versus what happens if it moves again in 2026. That way you are not guessing, you are making a decision with real numbers in front of you.

If you’re wondering how the Bank of Canada interest rate and a possible December pause affect your own situation, I am happy to walk through it with you. 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.