Bank of Canada Holds Rates at 2.25%: What It Means for Home Buyers and Sellers
Team Olivieri
Wednesday, December 10, 2025
Today, the Bank of Canada kept its key interest rate at 2.25%, with no change to the prime lending rate banks use to price most variable-rate mortgages and lines of credit. This decision follows back-to-back cuts earlier in the fall and suggests the Bank believes rates are now “about right” to keep inflation close to its 2% target while still supporting the economy.?
The bigger story is what is happening underneath the headline: inflation has cooled to about 2.2%, close to target, while core measures are still in the 2.5%–3% range. At the same time, Canada’s economy has been bumpy—GDP growth was surprisingly strong in the third quarter thanks to trade swings, but overall demand at home remains soft and the job market is still healing.?
For real estate, a rate hold means stability in the short term. Variable mortgage rates are likely to stay where they are for now, and fixed rates will continue to follow bond markets and inflation expectations rather than big moves from the Bank. For buyers, this can be a window to plan with a bit more confidence instead of worrying about sudden jumps in payments. For sellers, it can help support demand as long as affordability remains manageable.?
If you are thinking about buying in 2026, refinancing, or deciding whether to list your home, the key is to match your strategy to both your budget and where rates are likely to trend next. Team OLIVIERI can walk you through how today’s decision impacts your approval amount, monthly payments, and timing so you are not guessing in this changing market.?
Thinking about a move in 2026 and not sure how this rate hold changes your plans? Book a quick call with Team OLIVIERI to review your numbers, compare options, and build a game plan before the next rate announcement on January 28, 2026.
The bigger story is what is happening underneath the headline: inflation has cooled to about 2.2%, close to target, while core measures are still in the 2.5%–3% range. At the same time, Canada’s economy has been bumpy—GDP growth was surprisingly strong in the third quarter thanks to trade swings, but overall demand at home remains soft and the job market is still healing.?
For real estate, a rate hold means stability in the short term. Variable mortgage rates are likely to stay where they are for now, and fixed rates will continue to follow bond markets and inflation expectations rather than big moves from the Bank. For buyers, this can be a window to plan with a bit more confidence instead of worrying about sudden jumps in payments. For sellers, it can help support demand as long as affordability remains manageable.?
If you are thinking about buying in 2026, refinancing, or deciding whether to list your home, the key is to match your strategy to both your budget and where rates are likely to trend next. Team OLIVIERI can walk you through how today’s decision impacts your approval amount, monthly payments, and timing so you are not guessing in this changing market.?
Thinking about a move in 2026 and not sure how this rate hold changes your plans? Book a quick call with Team OLIVIERI to review your numbers, compare options, and build a game plan before the next rate announcement on January 28, 2026.
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