On March 18, 2026, the Bank of Canada chose to keep its overnight lending rate unchanged at 2.25%. This marks the 2 consecutive hold in a row. Let's break down what drove this decision and — more importantly — what it actually means for your mortgage. What the Bank of Canada Did The Bank chose to keep its overnight lending rate unchanged at 2.25%, keeping the prime rate at 4.45%. Here's what's on their radar: Inflation remains within the 1-3% target band GDP growth slowed in the latest quarter Global trade uncertainty from tariff disputes Housing market activity remains subdued nationally Labour market showing signs of softening In plain English? The economy is cooling, but not crashing. Inflation is behaving, but global uncertainty is keeping the Bank cautious. What This Means for Your Mortgage Variable-Rate Mortgages No change to variable-rate mortgage payments. Your rate stays at prime minus your discount. Rate Type Current Range 5-Year Variable 3.50% Prime Rate 4.45% Fixed-Rate Mortgages Fixed rates are driven by bond yields, which have been volatile. 5-year fixed rates remain competitive. Rate Type Current Range 5-Year Fixed 3.94% 3-Year Fixed 3.84% Qualifying Rate Canadian Benchmark Rate (5.25%) or contract rate + 2% Renewing Soon? If you're renewing in the next 6 months, lock in a 120-day rate hold now to protect against bond yield spikes. Lock In Today's Rates Mortgage rates change daily. Get a rate hold for up to 120 days and protect yourself from increases. Get Rate Quote If you're within 120 days of renewal, this is your window. Lenders offer rate holds that protect you — whether rates go up or down before your renewal date. > Not sure what rate you'd qualify for? Book a quick call and we'll pull your best options from 30+ lenders in under 24 hours. Where Are Rates Headed? Markets are pricing in one more 25bps cut by mid-2026, but bond yield volatility could keep fixed rates elevated even if the overnight rate drops. Scenario Likelihood Impact Another hold at next meeting Moderate Rates stay flat, good time to lock in 25bps cut by mid-2026 Moderate Variable rates drop slightly, fixed may lag Surprise hike Low Unlikely unless inflation spikes above 3% The next Bank of Canada rate announcement is April 29, 2026. What Should You Do Right Now? Here's the honest advice, depending on your situation: If You're Buying Lock in a pre-approval now. It gives you a 120-day rate guarantee and lets you shop with confidence. You'll need to qualify at the stress test rate — the higher of the Canadian Benchmark Rate (5.25%) or your contract rate + 2%. If You're Renewing Don't just sign your lender's renewal letter. That's the most expensive mistake Canadian homeowners make. On a $500,000 mortgage, even a 0.25% difference saves you over $6,000 over a 5-year term. If You're Considering Variable vs. Fixed With the Bank signaling caution, variable rates offer lower starting payments but carry uncertainty. Fixed rates provide payment stability. The right choice depends on your risk tolerance and how long you plan to stay in your home. Find the Best Rate for You We compare rates from 50+ lenders to find you the best deal. No obligation, no pressure. Compare Rates Now Call (416) 822-7357 Frequently Asked Questions Renewing Soon? If you're renewing in the next 6 months, lock in a 120-day rate hold now to protect against bond yield spikes. If you're within 120 days of renewal, this is your window. Lenders offer rate holds that protect you — whether rates go up or down before your renewal date. > Not sure what rate you'd qualify for? Book a quick call and we'll pull your best options from 30+ lenders in under 24 hours. Where Are Rates Headed? Markets are pricing in one more 25bps cut by mid-2026, but bond yield volatility could keep fixed rates elevated even if the overnight rate drops. The next Bank of Canada rate announcement is April 29, 2026. What Should You Do Right Now? Here's the honest advice, depending on your situation: Lock in a pre-approval now. It gives you a 120-day rate guarantee and lets you shop with confidence. You'll need to qualify at the stress test rate — the higher of the Canadian Benchmark Rate (5.25%) or your contract rate + 2%. Don't just sign your lender's renewal letter. That's the most expensive mistake Canadian homeowners make. On a $500,000 mortgage, even a 0.25% difference saves you over $6,000 over a 5-year term.
