What a rate pause at 5% means for homeowners

On Wednesday, the Bank of Canada elected to hold its policy rate at five per cent for the second consecutive interest rate decision. The pause follows a steep series of interest rate hikes that began at a low of 0.25 per cent in March 2022. 

Alana Riley, head of mortgage, insurance and banking at IG Wealth Management, said told BNNBloomberg.ca that the rate pause offers “welcome relief for Canadians.” 

“The decision by the Bank of Canada to keep interest rates unchanged can provide a sense of stability and assurance to both current and prospective mortgage holders, supporting a more predictable and sustainable environment for the housing market,” Riley said in an emailed statement.