Bank of Canada holds rate at 2.75% – Here's what it means for you

Hi Sean,

After seven straight cuts, The Bank of Canada announced today that it is holding its policy rate at 2.75%, pausing its rate-cutting cycle for the first time since last summer.

What this means for you:

• If you have a variable-rate mortgage: Your interest rate and payments won’t change for now. If your mortgage adjusts with the prime rate, it will stay the same until the Bank of Canada makes its next move.
• If you have a fixed-rate mortgage: There’s no immediate impact, but if rate cuts resume later, it could mean lower rates when it’s time to renew.
• If you have a line of credit or other loans tied to prime: Interest charges will remain steady, with the prime rate expected to stay at 4.95% at most lenders and TD Bank's mortgage prime rate remaining at 5.10%.

What’s next?

The next rate decision is coming on June 4, 2025, and economists will be watching economic data and inflation trends to see if more rate cuts are ahead.

If you have questions about what this means for your mortgage or want to discuss your options, feel free to reach out. I'm always happy to help!