No Change: Bank of Canada Keeps Key Interest Rate at 2.25%

📰 Bank of Canada Holds Steady at 2.25%: What it Means for Your Mortgage

Rate stability confirmed! The Bank of Canada kept the overnight rate at 2.25%, meaning the Prime Rate for variable mortgages and HELOCs remains steady at 4.45%.

Today's announcement from the Bank of Canada confirms that the target for the overnight rate will remain unchanged at 2.25%.

This was a widely anticipated decision that signals a period of immediate stability in the Canadian interest rate environment. For homeowners and buyers, this news is generally positive, providing clarity on a significant portion of the mortgage market.

✅ No Change to Prime Rate

The immediate takeaway for many homeowners is that the prime rate with most lenders will not be affected:

• Bank of Canada Overnight Rate: Remains at 2.25%.

• Prime Rate: Remains steady at approximately 4.45% with most lenders.

• Affected Products: Your interest rates on variable-rate mortgages, adjustable-rate mortgages, and Home Equity Lines of Credit (HELOCs) will remain the same.

If you currently have one of these products, your payment schedule and interest calculations will continue unchanged for now.

🗓️ Looking Ahead: The Next Decision

The Bank of Canada continues to monitor domestic and global economic conditions, including inflation and employment data, as it assesses the path forward.

The next scheduled interest rate announcement is on Thursday, January 29, 2026. We will be tracking the economic data and commentary closely and will provide an update as soon as the next decision is made.

💡 Your Next Steps

As a Mortgage Broker with over 20 years of experience with Mortgage Architects, I always encourage my clients to use these periods of stability to review their long-term strategy. While variable rates are holding steady, it's a great time to evaluate if a change in your mortgage structure could save you money or better meet your financial goals.

If you have questions about how the current rate stability impacts your personal finances, or if you're considering a new purchase or refinance, please reach out to me directly.