Bank of Canada Holds Interest Rates: What It Means for You
HOMEH Publishing Department
Editorial team · HOMEH Inc., Brokerage · RECO #6000380 · Jul 18, 2026 · 4 min read
The Bank of Canada has decided to keep its interest rates steady at 2.25%. This can impact many aspects of the housing market, especially for home buyers and renters.
Key takeaways
Interest rates remain unchanged at 2.25%.
Buyers may find mortgage costs stable for now.
Potential renters should be aware of stable rental prices.
HOMEH offers the industry's highest Cashback Rebate for eligible buyers.
Impact on Home Buyers
With the Bank of Canada holding interest rates at 2.25%, many home buyers can expect their mortgage costs to remain steady. This is good news for those looking to purchase a home now. A stable interest rate may make it easier to plan budgets and understand monthly payments.
Mortgage Costs and Stress Test
Home buyers must still pass the mortgage stress test, qualifying at the greater of their contract rate plus 2% or 5.25%.
A steady rate means fewer surprises in payments for buyers.
Tip for Buyers
Consider using tools like HOMEH’s mortgage calculator to better understand your payments. You may also be eligible for the industry's highest Cashback Rebate when buying through HOMEH.
Effects on Home Sellers
For home sellers, stable interest rates can provide a clearer picture of the market. If buyers are not facing higher borrowing costs, they may be more willing to purchase homes. This can lead to a more active market.
Selling Strategy
Sellers might consider pricing homes competitively to attract buyers.
Working with a service like HOMEH can help save on commission costs.
Selling with HOMEH
HOMEH lists homes for a low 1% fee and offers cashback, helping sellers keep more money in their pockets.
Rental Market Considerations
For renters, steady interest rates can mean stable rental prices. Landlords may not feel the need to raise rents significantly if mortgage rates remain constant. This is an important factor for anyone looking to rent a home.
Understanding Rent Increases
In Ontario, the 2026 rent increase guideline is set at 2.1%.
Rent can increase only once a year, with proper notice.
Tip for Renters
Stay informed about your rights as a tenant. Check with the Landlord and Tenant Board for any updates on rental regulations.
Looking Ahead
While the Bank of Canada has kept rates steady for now, it is essential for buyers, sellers, and renters to stay informed. Changes in the economic landscape can lead to future adjustments in interest rates, which can impact the housing market.
What Should You Do?
If you're buying, consider locking in your rate now.
Sellers should prepare their homes for a potential increase in buyer interest.
Renters should keep an eye on lease terms and potential future increases.
Stay Informed
Follow market trends and check in with real estate experts to navigate the market better.
About this story
This is HOMEH's plain-English analysis of reporting by Bank of Canada. Read the original report here: Bank of Canada.
What does a steady interest rate mean for my mortgage?
A steady interest rate can help you budget and plan your mortgage payments better without unexpected increases.
Will home prices go up or down with stable rates?
Stable interest rates can lead to a more active market, possibly keeping prices steady as more buyers may enter the market.
How often can rent increase in Ontario?
In Ontario, rent can increase once every 12 months, with 90 days' written notice required.
How can HOMEH help me in buying or selling a home?
HOMEH offers a low listing fee and the industry's highest Cashback Rebate for eligible buyers, helping you save money. Sellers who also buy with HOMEH within 6 months list for free, or pay $395 + HST for a Mere Posting.
A quick note
This article is general information only and is not legal, tax, or financial advice. Rules and rates can change — check the current figures with the official source or a licensed professional before you act.
Key takeaways
