The Bank of Canada held its overnight policy rate at 2.25% on September 2, 2026. It was the seventh consecutive decision with no change, keeping prime-linked borrowing costs steady for now.
At a glance
- The overnight policy rate remained at 2.25% on September 2, 2026.
- Variable mortgage and home-equity line rates generally move with lenders' prime rates.
- Fixed mortgage rates are influenced more directly by bond yields and can move even when the Bank of Canada holds.
- A pre-approval's rate hold and expiry date should be checked before shopping or renewing.
Variable-rate borrowers
A policy-rate hold normally means no immediate change to lenders' prime rates. Borrowers with adjustable payments will generally see payments remain stable, while some variable products with fixed payments may continue to change how much of each payment goes toward principal.
Fixed-rate borrowers
Fixed mortgage pricing is not set directly by the overnight rate. Government bond yields, lender funding costs, competition, and the term selected all matter. A Bank of Canada hold therefore does not guarantee that advertised fixed rates will remain unchanged.
Before buying or renewing
- Compare the total cost and flexibility of fixed and variable options, not only the opening rate.
- Ask about prepayment privileges, penalties, portability, and renewal terms.
- Stress-test the monthly budget for a higher payment before committing.
- Review advice with a qualified mortgage professional based on your own finances.