The Bank of Canada has signalled that it's at the end of its rate-cutting cycle, and the overnight lending rate could remain at its current level of 2.25 per cent for some time.Adrian Wyld/The Canadian Press
The Bank of Canada will make its final interest rate decision of the year next week, and most experts believe a rate hold is all but guaranteed.
NerdWallet financial expert Shannon Terrell said a sputtering job market and uncertainty around trade with the U.S. are reasons why the BoC will likely stand pat, even though Canada’s gross domestic product numbers were stronger than expected for the third quarter of 2025.
“A rate hold is the only move that makes sense in response to recent opposing economic forces,” Ms. Terrell said in an e-mail.
The BoC has signalled that it is at the end of its rate-cutting cycle, and the overnight lending rate could remain at its current level of 2.25 per cent for some time. Data from Ratehub show that the cheapest variable rate mortgages are available at a rate of 3.45 per cent, the lowest since 2022.
Meanwhile, there has been upward pressure on bond yields, a major factor in determining fixed mortgages rates. The Canada five-year bond yield has climbed to the 2.8-per-cent level and continued increases could put upward pressure on fixed- rate mortgages.
Some lenders allow you to put a hold on quoted rates for up to 120 days. Experts say it is imperative mortgage shoppers take advantage of this in the current environment, in which fixed rates could rise.
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 market close on Dec. 4.
