The Bank of Canada held its overnight rate at 2.25% at its January 2026 meeting, pausing its rate-cutting cycle as it monitors global trade uncertainty and the strength of Canada's labour market.
Governor Tiff Macklem noted that while inflation is close to the 2% target, the central bank is being cautious given ongoing tariff threats from the United States and mixed economic signals from domestic sectors.
For Toronto homebuyers, this means mortgage rates are likely to remain relatively stable in the near term. Variable-rate holders will see no immediate change, while fixed-rate mortgages continue to be priced off Government of Canada bond yields.
If you're planning to purchase a home in 2026, now is a good time to get pre-approved and lock in current rates. Book a free strategy session with our team to understand your buying power.
January 29, 2026
