What the Bank of Canada’s July 2025 Rate Hold Means for Canadian Homeowners

On July 30, 2025, the Bank of Canada (BoC) announced it would hold its overnight lending rate steady at 2.75%—marking the third consecutive rate hold this year

While this decision was widely expected, it carries important implications for homeowners, buyers, and investors navigating today’s real estate and mortgage landscape.

What This Means for Mortgage Borrowers

Variable-Rate Mortgage Holders

If you’re currently in a variable-rate mortgage, this rate hold means no immediate change to your interest rate or monthly payments. Since variable rates are tied to lenders’ prime rates—which remain at 4.95%—your borrowing costs stay the same

However, it’s important to remember that while your payment amount may not change, the portion going toward interest versus principal can shift over time. With rates holding steady, your amortization schedule remains predictable—for now.

Fixed-Rate Mortgage Shoppers

For those shopping for a fixed-rate mortgage or coming up for renewal, the picture is a bit more complex. Fixed rates are influenced by bond yields, not the BoC’s overnight rate. And right now, five-year Government of Canada bond yields remain elevated, largely due to persistent inflation concerns and global trade uncertainty

This means fixed mortgage rates have recently increased, and could rise further if bond yields stay high. If you're locking in a rate soon, it’s wise to secure a pre-approval with a rate hold—this can protect you from future increases while still allowing you to benefit if rates drop.

Coming Up for Renewal? Be Proactive

With 60% of Canadian mortgages set to renew in 2025 and 2026, many homeowners are facing significantly higher rates than they locked in years ago. If you’re one of them, now is the time to:

Shop around for the best rate
Consider extending your amortization to reduce monthly payments
Work with a mortgage broker to explore refinancing options

A rate hold today doesn’t mean rates won’t rise tomorrow. Taking action now can save you thousands over the life of your mortgage.

Investor Insights

For real estate investors, the BoC’s decision also affects investment strategies. While equity markets remain volatile due to global trade tensions, GICs and other fixed-income products remain attractive, with rates up to 5%—a solid option for those seeking stability in uncertain times.

Why Work With James & Patrick Bryant at Comflex Realty?

Navigating the real estate market in a fluctuating rate environment can be overwhelming. That’s where we come in.

As experienced realtors with deep knowledge of the Durham Region and beyond, we help homeowners and investors make informed decisions—whether you're buying, selling, or refinancing. We stay on top of market trends, mortgage shifts, and economic updates so you don’t have to.

📞 Let’s talk about how this rate hold affects your real estate goals.

905-439-2033 [email protected]

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