As was widely expected, the Bank of Canada has left its key lending rate unchanged at 5.00%.

This marks the Bank's fifth straight rate hold since it last raised rates back in July.

In its statement, the Bank said it is "still concerned about risks to the outlook for inflation, particularly the persistence in underlying inflation."

"Governing Council wants to see further and sustained easing in core inflation and continues to focus on the balance between demand and supply in the economy, inflation expectations, wage growth, and corporate pricing behaviour," it added. 

Read More: For a detailed view, access the Bank of Canada's full statement.

What this means for your mortgage

• Variable-rate mortgages: No change in your rates, with the prime rate holding at 7.20% at most major lenders (excluding TD, which has a mortgage prime rate of 7.35%).
• Fixed-rate mortgages: Your mortgage term remains unaffected by this announcement.

Looking forward

We're closely monitoring the landscape as we approach anticipated rate cuts by the Bank in the second half of the year. Meanwhile, the Bank's next rate decision is scheduled for April 10. Should you have questions or wish to discuss adjustments to your mortgage strategy in light of these developments, please don't hesitate to reach out.

Together, we can navigate these changes to ensure your mortgage strategy remains well-aligned with your financial goals.

Best regards!

Wednesday, March 6, 2024