Author: admin
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Big Six Banks Rate Outlook 2026
Rates on hold: All six major banks expect the BoC policy rate to stay at 2.25% through 2026.
No near-term cuts: Stable core inflation limits justification for additional easing.
Borrowing costs steady: Variable mortgage and HELOC rates likely remain broadly unchanged.
Housing impact: Rate stability supports affordability and calmer housing market conditions.
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BoC Holds Rates Unchanged at 2.25%
The Bank of Canada kept its key overnight interest rate at 2.25%, as widely expected, saying the current rate remains appropriate given economic conditions. Governor Tiff Macklem emphasized that “timing or direction” of the next rate change is unclear due to elevated uncertainty in trade, geopolitical risks, and a “little changed” economic outlook.The next scheduled interest rate decision is set for March 18, 2026, when policymakers will reassess and decide whether to hold, cut, or raise the policy rate.
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Understanding Your Options for Mortgage Flexibility
Breaking a mortgage means paying it off early, changing terms, or ending the contract, often incurring penalties. Open mortgages have no fees, but closed fixed-rate mortgages require paying three months' interest or the interest rate differential, whichever is higher. Variable-rate mortgages usually incur a three-month interest penalty. Additional fees may apply. Strategies to reduce penalties include making maximum prepayments, porting the mortgage, blending and extending rates, or having the buyer assume the mortgage. Careful calculation is essential before deciding.
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