Rate Decision: What Changed and What Didn't
The Bank of Canada held its policy interest rate steady at 2.25% in its March 12, 2026 announcement, after a series of cuts that brought rates down from their 5% peak in mid-2024.
Impact on Mortgage Rates
Current variable-rate mortgages are hovering around 4.5–4.7%, while 5-year fixed rates are available in the 4.2–4.5% range. For a typical $700,000 mortgage with 20% down ($560,000 borrowed):
- Variable at 4.5%: ~$3,100/month
- 5-year fixed at 4.3%: ~$3,050/month
What This Means for Buyers
- Pre-approval is key — locking in gives you certainty for 90–120 days.
- Competition is rising — lower rates have brought more buyers, especially in Durham Region where 22–30% of sales go over asking.
- Condo opportunities — average sale price of $165,159 and 30-day DOM make condos the most accessible entry point.
What This Means for Sellers
- Spring market is active — 186,141 active listings with strong absorption rates.
- Price right from day one — 2,531 active listings have already reduced their price.
This article provides general information only and should not be considered financial advice. Consult with a licensed mortgage professional for personalized guidance.