Update, October 6, 2026: the Bank of Canada held its policy rate at 2.25% on June 10, July 15 and September 2, 2026. It has been 2.25% since October 29, 2025, and the next scheduled decision is October 28, 2026. In September the Bank said the economy and inflation were evolving broadly in line with its July forecast. Correction, October 6, 2026: an earlier version quoted a range for five-year fixed rates, an oil-price figure and a monthly unemployment rate that we could not match to the Bank's statement; those have been removed or replaced with the Bank's own description.
The Bank of Canada held its target for the overnight rate at 2.25% on Wednesday, June 10, 2026, a fifth consecutive hold, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For Greater Toronto Area buyers, sellers and mortgage holders, the headline is stability: prime stays put, and so do payments on variable-rate mortgages and home equity lines of credit.
Why the Bank held
In its opening statement the Bank said that since its April decision the economic impact of the conflict in the Middle East had increased, with higher energy prices and disrupted supply chains weighing on global growth and pushing up inflation. CPI inflation was 2.8% in April, and the Bank expected it to stay close to 3% for a few months before easing toward the 2% target. At the same time the economy was soft: GDP edged down 0.1% in the first quarter, and the unemployment rate had moved between 6.5% and 7%. Faced with higher inflation from energy and a weak economy, the Bank chose to wait.
What the hold means for mortgage rates
With the policy rate unchanged, the major banks' prime rate stays at 4.45%, so variable-rate mortgages and HELOCs don't change. Five-year fixed rates are priced mainly off Government of Canada bond yields and move with the bond market rather than with the announcement. For the summer market, that meant a predictable backdrop rather than a shock in either direction.
What it means for buyers
Your qualifying maths doesn't change: you must qualify at the greater of 5.25% or your contract rate plus 2 points. As an illustration, a quarter-point move on a $700,000 mortgage with a 25-year amortization at about 4% would have changed the monthly payment by about $95.
- Ask about rate holds. Many lenders hold a pre-approved rate for a period; ask how long. Start with a free pre-qualification.
- Variable-rate holders get no cut, but no increase either.
- Renewing in 2026? A Bank of Canada staff analysis estimated about 60% of outstanding mortgages renew in 2025 or 2026, most at higher payments than before. See our renewal guide.
What it means for sellers
Stable rates support demand, but a soft economy keeps buyers cautious, so pricing to recent sales matters more than ever. Start with a free instant home valuation, then ask an agent for a comparative market analysis.
Track the impact on your own home
With My Home you can follow your home's estimated value, model your renewal timing, and get a monthly update.
What came next
The Bank held again at 2.25% on July 15, 2026, with its Monetary Policy Report, and on September 2, 2026. Its next decisions are October 28 and December 9, 2026.
Frequently asked questions
What is the prime rate?
It's the rate banks use as the base for variable-rate loans. When the Bank of Canada changes its policy rate, the major banks usually change prime by the same amount; with the policy rate at 2.25%, their prime rate is 4.45%.
Wondering what this means for your buying power or payment? Ask Zara, Summitly's AI virtual agent, any time, or talk to a licensed Summitly agent.
