No Change From The Bank Of Canada

By Jamie Moi, Mortgage Broker  July 15, 2026

There was little surprise this morning when the Bank of Canada opted to hold steady for the 6th consecutive time, meaning that Prime rate remains at 4.45%.  Despite inflation threats and continuing trade uncertainty, the Bank acknowledged that many Canadians are facing  financial strain and that the war in the Middle East continues to be a risk factor.  

By many accounts, the Canadian economy is showing signs of improvement.  The housing market has shown a slight increase in home sales month-over-month and Dr. Sherry Cooper, Chief Economist for the DLCG Group, indicated that, "Buyers and sellers are increasingly finding common ground on pricing, reflected in firmer sale-to-list price ratios, shorter selling times, and a marked slowdown in price declines. These developments suggest that the period of market adjustment is largely behind us and that home prices are beginning to find a floor."

Dr. Cooper noted that pent-up demand for housing is expected to create increased sales activity in the second half of 2026 and this is being led by single-family homes.  The condo market has struggled, especially in light of less investor participation in the sector.  However, Dr. Cooper also notes that financing conditions are improving and, as excess inventory is absorbed, the condo market should begin to strengthen, though it certainly won't happen over night.  

There is no doubt that the war in the Middle East is a major contributing factor for the Canadian economy and the increased cost of living. While the Bank of Canada cannot mitigate the impact of an external factor, maintaining the Prime rate may help affordability here at home. 

Fixed rates, which are set based on bond rates, have seen a bit of stabilization. Though fixed rates still seem to be less attractive to many borrowers due to the affordability of variable rate mortgages at this time. 

If you are in a variable rate mortgage or have a line of credit, you can breathe easy for another month as rates are not changing for you.  

If you have any questions about your mortgage financing feel free to call us anytime. We are always happy to help!