Bank of Canada Holds at 2.25%, Again. Here’s What That Actually Means for Your Mortgage
The Bank of Canada interest rate today is 2.25%. On September 2, 2026, the Bank held its target for the overnight rate at that level, the seventh scheduled announcement in a row without a change, according to the Bank of Canada’s September 2 press release. For most homeowners, the hold changes nothing on the next mortgage statement. What it means for you depends on the type of mortgage you have, when your term ends, and whether you are shopping for a new rate.
- Bank of Canada rate: The Bank of Canada interest rate today is 2.25%, unchanged since October 29, 2025.
- Rate hold continues: The September 2026 announcement marked the seventh consecutive hold, with the Bank Rate at 2.5% and the deposit rate at 2.20%.
- Variable mortgages: Borrowers see no change, as the prime rate has remained 4.45% throughout the pause.
- Fixed mortgages: Existing borrowers remain locked in until renewal, while new fixed rates continue to track bond yields, which the Bank says have increased.
- Inflation risks: The Bank highlighted growing upside pressure from energy prices and new tariffs between Canada and the United States.
- Next announcement: The next scheduled rate decision is October 28, 2026, alongside the release of a new Monetary Policy Report.
What the Bank of Canada Announced on September 2, 2026
The Bank held its policy rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. It said the economy and inflation were evolving broadly in line with the forecast in its July Monetary Policy Report. At the same time, it warned that the risks around that forecast had grown.
| Measure | Figure in the September 2 Announcement |
|---|---|
| Target for the overnight rate | 2.25% |
| Bank Rate | 2.5% |
| Deposit rate | 2.20% |
| Q2 2026 GDP growth | 3.3% |
| CPI inflation | Around 3% |
| CPI excluding gasoline (July) | 2.2% |
| Core inflation measures (July) | Close to 2% |
| Unemployment rate (July) | 6.4% |
| Next scheduled announcement | October 28, 2026 |
Source: Bank of Canada interest rate announcement, September 2, 2026
Why the Bank Held Instead of Moving
Two forces pulled in opposite directions. The economy picked up in the second quarter, and the Bank noted “some rebound in housing activity” after several weak quarters. But the conflict in the Middle East is keeping energy prices high, and new US tariffs and Canadian countermeasures followed the breakdown of trade talks between the two countries. The Bank said the upside risks to inflation have increased, while the new tariffs make growth prospects less certain.
What the Rate Hold Means for Your Mortgage
The policy rate is the rate at which major financial institutions borrow and lend one-day funds among themselves. It does not set your mortgage rate directly, but it shapes the prime rate, and prime drives most variable-rate mortgages.
If You Have a Variable-Rate Mortgage
Nothing changes after this announcement. The prime rate at chartered banks, as tracked by the Bank of Canada, has been 4.45% since the Bank’s October 2025 cut. If your payment adjusts with prime, it stays where it is. If you have a fixed-payment variable mortgage, the split between interest and principal in each payment also stays the same.
If You Have a Fixed-Rate Mortgage
Your rate is locked for the rest of your term, so the hold has no effect on your payment. The decision matters at renewal. New fixed rates are priced mainly off bond yields, and the Bank said in September that “long-term bond yields have moved up globally, including in Canada.” The Canadian Real Estate Association (CREA) said in its September 8 rate commentary that borrowers are already facing higher fixed mortgage rates as a result.
If You Are Renewing in the Next Year
Renewal is when today’s rate environment reaches your budget. Start comparing offers several months before your maturity date. OSFI does not expect federally regulated lenders to apply the minimum qualifying rate to an uninsured straight switch at renewal, as long as you do not increase the loan amount or the amortization. That makes it easier to move to another lender if the offer is better. The REMAX guide to mortgages and interest rates in Canada covers the renewal options in more detail.
If You Are Buying a Home
The hold does not change how much you qualify for. Lenders still test uninsured borrowers at the greater of the contract rate plus 2% or 5.25%, under OSFI’s current minimum qualifying rate. A pre-approval with a rate hold gives you some protection if fixed rates keep moving while you shop, and these tips for getting the best mortgage rate in Canada walk through how to compare offers.
| Your Situation | What Changed on September 2 | What to Watch |
|---|---|---|
| Variable rate, adjustable payment | Nothing. Prime stays at 4.45%. | Bank language on inflation at the October 28 announcement. |
| Variable rate, fixed payment | Nothing. The interest share of each payment stays the same. | Any future prime rate increase that could shift more of each payment toward interest. |
| Fixed rate, mid-term | Nothing until renewal. | Bond yields and lender renewal offers as your maturity date approaches. |
| Renewing within 12 months | Policy rate unchanged; fixed mortgage rates remain influenced by bond yields. | Offers from your current lender and competing lenders. |
| Buying a home | Qualifying rules remain unchanged. | The length of your rate hold and any updates to your mortgage pre-approval. |
Sources: Bank of Canada; CREA
Is a Rate Increase Now Possible?
The Bank did not signal a direction. It said Governing Council “is prepared to adjust monetary policy as needed” and will assess whether the economic rebound can last. CREA reads the BoC rate announcement for September 2026 as a shift in tone that puts a potential hike back on the table for one of the two remaining meetings in 2026, though CREA also stressed that a hike is not a done deal.
None of this is a forecast you can plan around with certainty. The practical step is to know how a change in either direction would affect your payment before the next announcement.
What Comes Next
The Bank’s remaining scheduled announcements for 2026 are October 28 and December 9. The October decision comes with a new Monetary Policy Report, which updates the Bank’s projections for growth and inflation. REMAX Canada posts a summary of each decision in its interest rate announcement recap.
Plan Your Next Move With a REMAX Agent
A rate hold gives you a stable reference point, not a guarantee. If you are buying, selling or renewing in the coming months, a REMAX agent can connect local market data with the financing conversation you are having with your lender or broker. Contact a REMAX agent to talk through how the September 2026 rate decision fits your plans.
What Is the Bank of Canada Interest Rate Today?
The Bank of Canada interest rate today is 2.25%. That is the target for the overnight rate, confirmed at the September 2, 2026 announcement. The Bank Rate is 2.5%, and the deposit rate is 2.20%. The policy rate has remained at 2.25% since October 29, 2025.
Will My Mortgage Payment Change After the Rate Hold?
Not because of this decision. Variable-rate payments follow prime, which stayed at 4.45%. Fixed-rate payments remain unchanged until your term ends. Your payment could change at renewal when you secure a new rate based on market conditions at that time.
Does a Rate Hold Mean Fixed Mortgage Rates Will Stay the Same?
No. Fixed mortgage rates are influenced more by bond yields and lender conditions than by the policy rate itself. The Bank noted that long-term bond yields have risen globally, including in Canada, and borrowers have already faced higher fixed-rate offerings from many lenders.
When Is the Next Bank of Canada Rate Announcement?
The next scheduled Bank of Canada rate announcement is October 28, 2026. The Bank will release a new Monetary Policy Report on the same day, including updated forecasts for inflation and economic growth. The final scheduled announcement of 2026 is December 9, followed by the first 2027 announcement on January 27.
