Renewing your mortgage? What Bank of Canada’s rate hold means for you
Global News
Experts say that while Wednesday’s announcement of a rate hold does not make things easier for anyone renewing their mortgage, it does not make things any worse either.
With more than half of Canadian homeowners looking to renew their mortgages in 2025, current mortgage holders will be watching Wednesday’s Bank of Canada interest rate announcement with a keen eye.
Interest rates in Canada are holding steady for now, with the Bank of Canada’s governor Tiff Macklem describing the “unpredictable” outlook for United States trade policy, and saying that it may be “hard to restore” trust in our neighbours to the south.
Experts say that while the announcement of a rate hold does not make things easier for anyone renewing their mortgage, it does not make things any worse either.
“A rate cut today would have made renewal a little easier for homeowners leaning toward a variable, assuming it shaved 25 basis points off current rates. For many people, especially those having trouble balancing a mortgage with the cost of living, that’s not a game-changing discount,” said Clay Jarvis, mortgage expert at NerdWallet Canada.
Wednesday’s decision by the central bank effectively “means nothing changes for homeowners staring down a renewal” with variable rates hovering within the 4-4.5 per cent range at least until the Bank’s next decision on Sept. 17.
“Notably, the Bank has put the possibility of a cut back on the table,” said Penelope Graham, mortgage expert at Ratehub.ca. “It has emphasized that it will continue to assess the impacts a weaker economy will have on inflation, as well as the ongoing costs of tariffs and trade.”
A future rate cut means that some mortgage holders might want to act soon, she said.
“Anyone currently shopping for a new mortgage rate, or coming up for renewal on their existing term, should take out a rate hold or pre-approval immediately to secure access to today’s rate pricing,” she added.
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