A RATE HOLD, Bank of Canada Holds Rate at 2.25%: A Moment of Stability for Canada’s Housing Market
January 28, 2026
Today, the Bank of Canada held its benchmark interest rate at 2.25%, signaling a pause after months of careful monetary tightening. For the Canadian mortgage and housing market, this decision brings seen-but-felt relief.
A rate hold means borrowing costs remain predictable—a crucial factor for buyers, homeowners, and brokers navigating affordability. Variable-rate borrowers avoid immediate increases, while fixed-rate pricing may stabilize as bond markets digest the central bank’s confidence in cooling inflation.
For the housing market, this pause could unlock sidelined demand. Buyers who were waiting for clarity may begin re-entering the market, particularly in major urban centres. Sellers may also gain confidence, knowing financing conditions aren’t worsening—at least for now.
Looking ahead, today’s hold suggests the Bank is watching data closely rather than rushing decisions. If inflation continues to ease, markets may begin pricing in future cuts later this year. Until then, expect a more balanced, data-driven mortgage environment—where strategy, lender knowledge, and timing matter more than ever.
In short: stability is back on the table—and opportunity follows clarity
Keep those thoughts positive and in the direction you want to go.- Bhqv