Another pause from the Bank of Canada

The Bank of Canada held the Target Overnight Rate steady at 2.75% again this morning, June 4, 2025. This is the benchmark rate used by banks to set their Prime Rate, and therefore, I expect no change to lenders' Prime Rate. This announcement directly impacts any borrowers with a variable or adjustable-rate mortgage and home equity lines of credit. 

What does this mean for you?

• Variable (VRM) and adjustable (ARM) rate mortgages are directly impacted by these rate announcements, and there will be NO changes to your mortgage with today’s BoC hold.
• No change to fixed rates either. Fixed rates are primarily tied to the bond market, specifically the yields on 5-year Government of Canada bonds, which mortgage lenders use as a benchmark for setting 5–year fixed mortgage rates.
• If you're shopping for a new home, now is the perfect time to get pre-approved. With interest rates holding steady, getting pre-approved now locks in your rate hold and sets you up for success when you find the perfect home.

You can read the full announcement here. The next announcement is scheduled to take place on July 30, 2025.

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