The Bank of Canada kept its key interest rate at 2.25% last week. For homebuyers and homeowners in Ottawa and across Ontario, this means mortgage rates are holding steady. When borrowing costs are predictable, it’s easier to plan your next steps—whether you’re buying your first home, upgrading, or refinancing an existing mortgage.
Canada’s economy is performing better than expected. Gross Domestic Product (GDP) grew 2.6% in Q3 2025, and the unemployment rate fell to 6.5% in November. Inflation remains near 2%, indicating that prices are generally stable. Stable Ontario mortgage rates heading into 2026 make this a great time to buy a home, refinance, or plan ahead with confidence.
Perspective for Ontario Homebuyers
Even with strong economic growth, some industries are still facing uncertainty, and global trade pressures remain. The Bank of Canada has said the current rate is “about the right level” to keep inflation near its target and support steady economic growth.
For Ontario homebuyers, especially newcomers to Canada, this is important. First-time buyers can move forward with more confidence knowing mortgage rates are unlikely to rise suddenly. This adds predictability to housing markets in Ottawa, the Greater Toronto Area (GTA), and surrounding communities.
Ontario Home Prices and Mortgage Refinancing Options
After several interest rate cuts earlier in 2025, rates are now steady at 2.25%. Across Canada, home prices have dipped slightly—about 1.4% from their peak—but remain relatively stable.
Stable borrowing costs make it a good time for Ontario homeowners to review their mortgage. Refinancing may help lower monthly payments, secure a better fixed rate, or consolidate debt. First-time buyers can shop with confidence, knowing rates are unlikely to rise quickly.
What’s Next for Ontario Mortgage Rates in 2026
The Bank of Canada expects moderate economic growth next year, with inflation staying close to 2%, and the federal budget in place. Changes in trade could influence future rates, but for now, the Bank is taking a cautious approach.
For homeowners and buyers in Ottawa and Ontario, this period of stable rates is a good opportunity. It’s an ideal time to plan your home purchase, review your mortgage, or explore refinancing options.
If you’re new to Canada or unsure how mortgages work, I can guide you through your options and help you choose what works best for your situation.
TLDR
- Bank of Canada rate: 2.25% (stable)
- Inflation: near 2%, prices stable
- Ontario home prices: slightly down 1.4% from peak
- Opportunities: refinance, buy, or plan ahead with confidence
- Newcomers: Guidance available for first-time mortgages
