This morning the Bank of Canada announced it is keeping its overnight rate at 2.25%, where it has sat since last October. That means prime rate stays at 4.45%, and if you have a variable-rate mortgage or a line of credit, your rate and payment don’t change.
Most economists expect the Bank to stay on hold through the rest of 2026. Inflation is still the Bank’s main concern, and ongoing trade uncertainty with the U.S. hasn’t made its job any easier. For variable-rate holders, the practical takeaway is payment stability, not a rate cut around the corner.
Fixed rates are a slightly different story. The 5-year Government of Canada bond yield, which drives fixed mortgage pricing, climbed from about 3.03% to 3.12% over the past week. If yields hold at this level, fixed rates could edge up. If you’re buying or renewing this summer, it’s worth getting a rate hold in place now, it costs nothing and protects you if pricing moves.
The bigger picture is actually encouraging. Home sales across Canada rose for the fourth straight month in June, national affordability is the best it has been in four years, and average rents have now fallen for 21 straight months. For prepared buyers, this is a real window.
Is a Refinance Right for You?
With the cost of just about everything higher than it has ever been, more clients are asking whether refinancing their mortgage makes sense. Sometimes the answer is yes, sometimes it’s no, and the only way to know is to run the numbers.
We can prepare a personalized refinance analysis using your current mortgage, interest rate, and any outstanding debts to show you exactly how a refinance could impact your monthly payments, total interest costs, and overall financial picture.
A refinance can make sense for a few different reasons:
Lower your interest costs. If your current mortgage rate is higher than what’s available today, refinancing could save you money, even after factoring in any penalty. We’ll calculate the costs, the savings, and your break-even point so you can make an informed decision.
Consolidate higher-interest debt. Rolling credit cards, loans, or lines of credit into your mortgage may reduce your overall interest costs while simplifying multiple monthly payments into one.
Improve monthly cash flow. Sometimes the priority isn’t paying less interest, it’s creating more room in the monthly budget. Paying off higher-interest debt and, where appropriate, extending your amortization can reduce your monthly payments. While a longer amortization may increase the total interest paid over time, we’ll clearly show you the trade-offs so you can decide what best aligns with your financial goals.
With the cost of living continuing to rise, improving monthly cash flow is often just as important as saving on interest. If you’re wondering whether refinancing could benefit you, we’d be happy to prepare a personalized analysis. There’s no cost or obligation, just clear numbers to help you make an informed decision.
