The Bank of Canada building in Ottawa on Wednesday.Keito Newman/The Globe and Mail
The Bank of Canada’s interest-rate decision on Wednesday confirmed what many experts had expected: the central bank’s rate-cutting cycle has come to an end. Now, the key questions are how long rates will remain steady, and whether rates will drop or rise next.
The BoC elected to keep its headline interest rate at 2.25 per cent, in response to resiliency in the Canadian economy despite U.S. tariffs. The bank also believes the current interest rate will keep inflation at bay.
Most economists expect that rates will stay the same for months, but disagree over what happens after that.
In a note to clients, Bank of Montreal chief economist Douglas Porter said uncertainty around U.S. trade leads his bank to assume that cuts are more likely, but he expects they will remain on hold for the entirety of 2026.
Six mistakes that can hurt your mortgage application
To get the best mortgage rate, look behind the opaque curtain of Big Bank pricing
That will provide some stability for variable-mortgage rates, but fixed-rate mortgages are facing some upward pressure from rising bond yields.
The Canada five-year bond yield, which is a major catalyst of fixed-mortgage rates, breached the 3-per-cent level for the first time in months after a 0.2-per-cent spike earlier this week.
Lenders have already reacted and raised their rates slightly from previous weeks, and the lowest available five-year fixed mortgage on Ratehub.ca currently sits at 3.89 per cent.
What do you want to know about mortgages?
Do you have a mortgage question for our expert? Is a variable or fixed rate the best option? Does it make financial sense to refinance? Is it better to consult your bank or go to a mortgage broker?
Submit your questions below and Ratehub's Penelope Graham could answer it in an upcoming column.
Mortgage rates are sourced by Ratehub.ca. For a comprehensive list of today’s mortgage rates for each term/type, visit ratehub.ca/best-mortgage-rates.
Ratehub.ca is a mortgage-rate comparison marketplace and mortgage brokerage. It helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products.
Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of midafternoon Dec. 11.
