On January 28, 2026, the Bank of Canada announced it is **holding its key interest rate steady at 2.25 %, where it has been since October 2025. https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate

This rate that the central bank sets influences the prime rate, which lenders use to price many kinds of loans, including variable-rate mortgages and home equity lines of credit (HELOCs). Because the rate is unchanged, many borrowing costs tied to prime are also expected to stay stable for now.

Here’s why that matters for buyers and sellers:

🏡 For Homebuyers

• Stability in the Bank of Canada’s rate usually means predictable payments on variable mortgages.
• It can also help buyers plan their budgets without worrying about immediate rate hikes.

📈 For Sellers

• Mortgage costs staying level can encourage buyers who were waiting on rate movements to stay active in the market.
• However, other market conditions like local inventory and home prices play a big role too.

📆 What’s Next?

Economists widely expect the rate to remain around 2.25 % through much of 2026 , with only minor changes possible depending on inflation and economic growth.

In a market where every percentage point matters, this pause gives both buyers and sellers some breathing room, but it’s still important for clients to talk with a mortgage professional to understand what this means for their individual situation.