Bank of Canada Holds Interest Rate at 2.25% | Ontario Real Estate Market Update

The Bank of Canada holds the overnight rate at 2.25%. Learn what this means for Ontario homebuyers, sellers, and homeowners heading into 2026. Next rate announcement: January 28, 2026.

 

The Bank of Canada announced on December 10, 2025 that it is holding the overnight rate at 2.25%, maintaining financial stability as we move into the new year. With the next rate announcement scheduled for January 28, 2026, consumers now have a window of clarity — an opportunity to plan, prepare, and position themselves strategically in the evolving Ontario real estate market.

Whether you’re buying, selling, investing, or currently paying a mortgage, here’s what this rate hold means for you.

What the 2.25% Rate Hold Means for Homebuyers

For both first-time and move-up buyers, stability is key. A rate hold often creates a temporary boost in buyer confidence because:

• Monthly mortgage affordability remains predictable

• Lenders become more comfortable with pre-approvals

• Competition may rise slightly as buyers re-enter the market

If you're planning a purchase in early 2026, now is an excellent time to secure or refresh your mortgage pre-approval, as lenders may adjust qualification criteria ahead of the next rate announcement.

What Sellers Should Know Right Now

A rate hold can be positive for sellers, especially in regions like the GTA, Halton, Hamilton, and Niagara, where price sensitivity has influenced buyer behaviour throughout 2025.

With buyers regaining confidence:

• Showing activity may increase

• Time on market may stabilize

• Well-priced listings will continue to perform

Sellers who have been waiting for the “right moment” may find that early 2026 brings renewed momentum.

Homeowners: What This Means for Your Mortgage

If you currently hold a mortgage:

• Variable-rate clients: your payment structure remains unchanged for now

• Fixed-rate clients: this hold signals continued rate stability heading into renewal season

• Renewals in 2026: now is the time to explore early options and shop rates proactively

A stable rate environment allows homeowners to make more confident financial decisions, whether you're planning renovations, refinancing, or expanding your real estate portfolio.

Looking Ahead: January 28, 2026 Announcement

The next Bank of Canada update could influence:

• Buyer demand for spring 2026

• Mortgage qualification rules

• Fixed and variable rate pricing

• Market momentum across Ontario

Our team will be monitoring the data closely to keep our clients informed and prepared.

Have questions about how this affects your buying or selling plans?

Whether you're considering entering the market or evaluating your next move, understanding how interest rates shape affordability and pricing is essential.

 

Contact Information

Ana Bastas Realty | Experience the AB Advantage™
📞 289.670.5888
🌐 www.anabastas.ca
Serving Toronto, Halton Hills, Georgetown, Glen Williams, Acton, Milton, Brampton, Mississauga, Oakville, Burlington, Hamilton, Stoney Creek, Binbrook & Niagara Region.