Bank of Canada Interest Rate Held at 2.25% — Housing Market Update for September 2026
Team Olivieri
Wednesday, September 2, 2026
The Bank of Canada held its policy rate at 2.25% on September 2, 2026, marking the seventh straight announcement with no change. The decision comes as Canada’s economy shows stronger growth, but with higher inflation risks from energy prices and a new wave of US tariffs that could affect costs down the road.
In plain language, the Bank is saying the economy is doing better than earlier in the year, but it is not quite ready to change course. GDP grew by 3.3% in the second quarter after a very weak first quarter, and the unemployment rate edged down to 6.4% in July. At the same time, headline inflation has been hovering around 3%, mainly because gasoline prices remain high, while core inflation measures are still close to 2%.
The big new factor in this announcement is trade policy. New US tariffs and Canadian counter-measures have been announced after trade talks broke down, and both situations remain fluid. The Bank warns that these tariffs could raise costs for some businesses and potentially feed into consumer prices over time, adding to the inflation risk from high oil prices and the ongoing conflict in the Middle East.
Housing activity rebounded in the second quarter after several weak periods, and the Bank says the pick-up in activity was broad-based. That is a positive sign, but the Bank also notes that demand for labour remains subdued and there is still excess supply in the economy, which keeps some downward pressure on prices and wages.
For buyers, a seventh hold at 2.25% means Canadian mortgage rates tied to the policy rate should remain stable in the near term, which helps with budgeting and pre-approval planning. That does not mean affordability has suddenly improved, but it does reduce the risk of a sudden jump in borrowing costs while you search.
For sellers, the picture is more balanced. A stronger economy and improving labour market can support buyer confidence, but new tariffs and higher energy costs add uncertainty. That means pricing strategy, presentation, and timing matter more than ever. Homes that are positioned well can still attract serious buyers, while overpriced listings may sit longer in a cautious environment.
The Bank says it will continue to assess the sustainability of the economic rebound and the outlook for inflation, and it is prepared to adjust monetary policy as needed. The next scheduled interest rate announcement is October 28, 2026, when the Bank will also release its next Monetary Policy Report.
If you want help understanding what today’s real estate market update means for your own plans, Team OLIVIERI is here to help. Whether you are buying, selling, or just trying to make sense of the market, reach out and let’s talk through your next move.
In plain language, the Bank is saying the economy is doing better than earlier in the year, but it is not quite ready to change course. GDP grew by 3.3% in the second quarter after a very weak first quarter, and the unemployment rate edged down to 6.4% in July. At the same time, headline inflation has been hovering around 3%, mainly because gasoline prices remain high, while core inflation measures are still close to 2%.
The big new factor in this announcement is trade policy. New US tariffs and Canadian counter-measures have been announced after trade talks broke down, and both situations remain fluid. The Bank warns that these tariffs could raise costs for some businesses and potentially feed into consumer prices over time, adding to the inflation risk from high oil prices and the ongoing conflict in the Middle East.
What This Means for the Real Estate Market
Housing activity rebounded in the second quarter after several weak periods, and the Bank says the pick-up in activity was broad-based. That is a positive sign, but the Bank also notes that demand for labour remains subdued and there is still excess supply in the economy, which keeps some downward pressure on prices and wages.For buyers, a seventh hold at 2.25% means Canadian mortgage rates tied to the policy rate should remain stable in the near term, which helps with budgeting and pre-approval planning. That does not mean affordability has suddenly improved, but it does reduce the risk of a sudden jump in borrowing costs while you search.
For sellers, the picture is more balanced. A stronger economy and improving labour market can support buyer confidence, but new tariffs and higher energy costs add uncertainty. That means pricing strategy, presentation, and timing matter more than ever. Homes that are positioned well can still attract serious buyers, while overpriced listings may sit longer in a cautious environment.
The Bank says it will continue to assess the sustainability of the economic rebound and the outlook for inflation, and it is prepared to adjust monetary policy as needed. The next scheduled interest rate announcement is October 28, 2026, when the Bank will also release its next Monetary Policy Report.
If you want help understanding what today’s real estate market update means for your own plans, Team OLIVIERI is here to help. Whether you are buying, selling, or just trying to make sense of the market, reach out and let’s talk through your next move.
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