Bank of Canada Interest Rate Announcement

As we head into the weekend, all eyes are on next Wednesday's Bank of Canada rate announcement. The question everyone is asking is: Will they cut, hold, or surprise us?

The current consensus among economists is that the Bank of Canada will hold the overnight rate steady, with many expecting borrowing costs to remain relatively unchanged for the rest of 2026. Of course, as we've learned over the past few years, markets can change quickly, and global events continue to play a significant role in where rates ultimately head.

I'll leave the forecasting to the economists (Brendon, I'm looking at you!), but one thing I am keeping a close eye on is the bond market.

For buyers considering a fixed-rate mortgage, there are still lenders offering insured 3- to 5-year fixed rates with a 3 in front. If your clients qualify, now may be an excellent time to secure those rates before they're gone.

A simple way to think about it:

• War on = Bond yields up = Fixed rates up

• War off = Bond yields down = Fixed rates down

Geopolitical uncertainty has a direct impact on bond yields, and fixed mortgage rates tend to follow. Timing the market is never easy, but if your clients are actively shopping, locking in today's rates could provide valuable peace of mind.

As always, I'll send out an update as soon as the Bank of Canada makes its announcement next Wednesday, along with what it means for your buyers and sellers.

If you have clients with questions this week or anyone who would benefit from getting pre-approved before making an offer don't hesitate to reach out. I'm always happy to help.