Bank of Canada Holds Rate at 2.25% — April 29, 2026

Expert Financing • April 29, 2026

The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. This decision comes against a backdrop of significant global uncertainty — and for Canadian homeowners, buyers, and anyone with a mortgage coming up for renewal, here's what it means.

What the Bank of Canada Said

A World Under Pressure

The Bank cited two major forces shaping today's decision: the ongoing conflict in the Middle East and continued uncertainty around U.S. trade policy. The Iran war has pushed energy prices sharply higher and disrupted transportation routes, squeezing oil-importing economies and pushing inflation up globally. Meanwhile, U.S. tariffs and shifting trade patterns continue to create headwinds for Canadian businesses and exporters.

Financial markets have been volatile, reflecting daily developments in the Middle East. Bond yields are modestly higher since January, and the U.S. dollar has strengthened against most major currencies — though the Canada-U.S. exchange rate has remained relatively stable.

The Canadian Economy

Canada's economy contracted in the fourth quarter of 2025, but growth is forecast to have resumed in early 2026. Consumer and government spending are providing support, while tariffs and trade uncertainty are weighing on exports and business investment. Housing activity has also declined, held back by slow population growth, economic uncertainty, and affordability challenges.

The labour market remains soft. Employment growth has been subdued over the past year, with job losses in sectors targeted by U.S. tariffs. The unemployment rate is sitting in the 6.5% to 7% range.

The Bank's April forecast projects GDP growth of 1.2% in 2026, rising to 1.6% in 2027 and 1.7% in 2028 as exports and business investment gradually recover.

Inflation

CPI inflation climbed to 2.4% in March, driven largely by higher gasoline prices. The Bank expects inflation to rise further in April — potentially reaching around 3% — before easing back toward the 2% target early next year as oil prices moderate. Core inflation has been holding steady at just above 2%.

Importantly, the Bank is watching carefully to ensure that higher energy prices don't feed through more broadly into goods and services prices. Longer-term inflation expectations remain anchored, which is a positive sign.

Why the Bank Held

With growth risks on one side and rising inflation pressures on the other, the Bank of Canada's Governing Council chose to hold steady at 2.25%. The Bank is "looking through" the immediate inflationary impact of the war in Iran, but has been clear that it will not allow higher energy prices to become entrenched inflation. As conditions evolve, the Bank stands ready to respond in either direction.

What This Means for Mortgage Holders and Buyers

A rate hold means no immediate change to variable-rate mortgage payments or home equity lines of credit (HELOCs) tied to the prime rate. The prime rate remains at 4.45%.

The bigger picture here is one of caution and patience. The Bank is navigating a genuinely difficult environment — balancing weak domestic growth against rising inflation risks from global energy prices. This uncertainty is likely to keep rates on hold for the foreseeable future, rather than signalling cuts or hikes in the near term.

For anyone thinking about locking in a fixed rate, renewing soon, or entering the market as a buyer, this environment calls for careful planning. The difference between rate options can mean thousands of dollars over the life of your mortgage.

The next scheduled rate announcement is June 10, 2026 .

As always, every borrower's situation is unique. If you have questions about how today's announcement affects your mortgage — or want to explore your options before the next decision — don't hesitate to reach out.

Information sourced from the Bank of Canada's official press release and Monetary Policy Report dated April 29, 2026.

Rebecca Harrap & 
Wendy Whiting
EXPERT FINANCING

CONTACT US
RECENT POSTS

Everything You Need to Know About Second Mortgages

By Expert Financing • April 16, 2026
What Is a Second Mortgage, Really? (It’s Not What Most People Think) If you’ve heard the term “second mortgage” and assumed it refers to the next mortgage you take out after your first one ends, you’re not alone. It’s a common misconception—but the reality is a bit different. A second mortgage isn’t about the order of mortgages over time. It’s actually about the number of loans secured against a single property —at the same time. So, What Exactly Is a Second Mortgage? When you first buy a home, your mortgage is registered on the property in first position . This simply means your lender has the primary legal claim to your property if you ever sell it or default. A second mortgage is another loan that’s added on top of your existing mortgage. It’s registered in second position , meaning the lender only gets paid out after the first mortgage is settled. If you sell your home, any proceeds go toward paying off the first mortgage first, then the second one, and any remaining equity is yours. It’s important to note: You still keep your original mortgage and keep making payments on it —the second mortgage is an entirely separate agreement layered on top. Why Would Anyone Take Out a Second Mortgage? There are a few good reasons homeowners choose this route: You want to tap into your home equity without refinancing your existing mortgage. Your current mortgage has great terms (like a low interest rate), and breaking it would trigger hefty penalties. You need access to funds quickly , and a second mortgage is faster and more flexible than refinancing. One common use? Debt consolidation . If you’re juggling high-interest credit card or personal loan debt, a second mortgage can help reduce your overall interest costs and improve monthly cash flow. Is a Second Mortgage Right for You? A second mortgage can be a smart solution in the right situation—but it’s not always the best move. It depends on your current mortgage terms, your equity, and your financial goals. If you’re curious about how a second mortgage could work for your situation—or if you’re considering your options to improve cash flow or access equity—let’s talk. I’d be happy to walk you through it and help you explore the right path forward. Reach out anytime—we’ll figure it out together.

How to Raise Your Credit Score and Unlock Better Rates

By Expert Financing • April 2, 2026
Want a Better Credit Score? Here’s What Actually Works Your credit score plays a major role in your ability to qualify for a mortgage—and it directly affects the interest rates and products you’ll be offered. If your goal is to access the best mortgage options on the market, improving your credit is one of the smartest financial moves you can make. Here’s a breakdown of what truly matters—and what you can start doing today to build and maintain a strong credit profile. 1. Always Pay On Time Late payments are the fastest way to damage your credit score—and on-time payments are the most powerful way to boost it. When you borrow money, whether it’s a credit card, car loan, or mortgage, you agree to repay it on a schedule. If you stick to that agreement, lenders reward you with good credit. But if you fall behind, missed payments are reported to credit bureaus and your score takes a hit. A single missed payment over 30 days late can hurt your score. Missed payments beyond 120 days may go to collections—and collections stay on your report for up to six years . Quick tip: Lenders typically report missed payments only if they’re more than 30 days overdue. So if you miss a Friday payment and make it up on Monday, you're probably in the clear—but don't make it a habit. 2. Avoid Taking On Unnecessary Credit Once you have at least two active credit accounts (like a credit card and a car loan), it’s best to pause on applying for more—unless you truly need it. Every time a lender checks your credit, a “hard inquiry” appears on your report. Too many inquiries in a short time can bring your score down slightly. Better idea? If your current lender offers a credit limit increase , take it. Higher available credit (when used responsibly) actually improves your credit utilization ratio, which we’ll get into next. 3. Keep Credit Usage Low How much of your available credit you actually use—also known as credit utilization —is another major factor in your score. Here’s the sweet spot: Aim to use 15–25% of your limit if possible. Never exceed 60% , especially if you plan to apply for a mortgage soon. So, if your credit card limit is $5,000, try to keep your balance under $1,250—and pay it off in full each month. Maxing out your cards or carrying high balances (even if you make the minimum payment) can tank your score. 4. Monitor Your Credit Report About 1 in 5 credit reports contain errors. That’s not a small number—and even a minor mistake could cost you when it’s time to get approved for a mortgage. Check your report at least once a year (or sign up for a monitoring service). Look for: Incorrect balances Accounts you don’t recognize Missed payments you know were paid You can request reports directly from Equifax and TransUnion , Canada’s two national credit bureaus. If something looks off, dispute it right away. 5. Deal with Collections Fast If you spot an account in collections—don’t ignore it. Even small unpaid bills (a leftover phone bill, a missed utility payment) can drag down your score for years. Reach out to the creditor or collection agency and arrange payment as quickly as possible . Once settled, ask for written confirmation and ensure it’s updated on your credit report. 6. Use Your Credit—Don’t Just Hold It Credit cards won’t help your score if you’re not using them. Inactive cards may not report consistently to the credit bureaus—or worse, may be closed due to inactivity. Use your cards at least once every three months. Many people put routine expenses like groceries or gas on their cards and pay them off right away. It’s a simple way to show regular, responsible use. In Summary: Improving your credit score isn’t complicated, but it does take consistency: Pay everything on time Keep balances low Limit new credit applications Monitor your report and handle issues quickly Use your credit regularly Following these principles will steadily increase your creditworthiness—and bring you closer to qualifying for the best mortgage rates available. Ready to review your credit in more detail or start prepping for a mortgage? I’m here to help—reach out anytime!