Bank of Canada Rate Announcement - Variable Rates Held Steady — But Fixed Rates? Not So Much
The Bank of Canada held its key interest rate steady today — and while that might sound like a whole lotta nothing, it actually comes with some very real takeaways for homeowners, buyers, and sellers alike. Especially if you’re feeling the weight of higher payments or debt.
📢 The Bank of Canada held its key rate steady at 2.75% today
➡️ The Prime rate (used to price variable rate mortgages and lines of credit) stays at 4.95%.
➡️ This announcement affects only variable-rate mortgages and lines of credit — fixed rates are based on bond markets, not the Bank of Canada’s policy rate.
Here’s what most people get tripped up on — when you hear "2.75% Bank of Canada rate," that’s not the mortgage rate you can get. That’s just the starting point banks use to set their own Prime rate.
Variable-Rate Mortgage? This Means Stability for Now
If you're in a variable-rate mortgage, the good news is... no news. Your rate, your payment, and your borrowing costs all stay the same — and after months of financial whiplash, a bit of predictability feels pretty great, right?
But that’s not the full story...
Fixed Rates Are Starting to Climb — Here's Why That Matters
Even though the Bank of Canada didn’t raise rates, some lenders have already increased their fixed mortgage rates over the past few days — and more increases could be on the way.
Why? Fixed rates don’t follow the Bank of Canada — they follow the bond market. And the bond market is kind of like your emotional friend who reacts to everything. Economic news, inflation numbers, global uncertainty... boom. Rate changes.
So while the BoC may be on pause, the fixed-rate world is still very much in motion.
Cashflow is Everything Right Now
Whether you're carrying debt, renewing soon, or just trying to make your monthly payments feel a little less stressful, I want you to know this:
👉 You don’t have to wait for your renewal date to make a change.
👉 You don’t have to borrow more to free up more cashflow.
We’re helping more and more clients restructure their mortgages early to reduce payments and free up breathing room — and in this market, that flexibility can be the difference between feeling stuck… and finally getting ahead.
Let me show you what I mean.
💥 “Break & Save” — The Power Move That Paid Off
Real Client Win #1: Paying a Penalty to Pay Less
These clients were juggling a 5.84% mortgage with 3 years left and a $35K line of credit, all while preparing for baby #2. With one partner going on maternity leave, cash flow was getting tight and the stress was piling up. 😟
What they were paying:
Mortgage: $3,217
Line of Credit: $550
Total: $3,767/month
🎯 What we did:
We broke the mortgage early, rolled in the line of credit, and used a cashback feature to help cover the penalty.
✅ New setup:
Mortgage: $2,832/month
Savings: $935/month
One simple monthly payment
➡️ The real win? Not just the savings — it was the peace of mind that came with it. Less stress, more snuggles with baby #2.
💸 Debt Detox: One Mortgage, One Payment, In Control Again
Real Client Win #2: Using Home Equity to Consolidate Debt
These clients were juggling a car loan, two credit cards, a line of credit, and a mortgage — and it was exhausting. Every month felt like a scramble just to make the minimums, and even then, the credit cards weren’t getting paid down. 😰
Here’s what their monthly payments looked like:
Car loan: $450
Credit card #1: $250
Credit card #2: $100
Line of Credit: $325
Mortgage: $2,440
Total: $3,565/month
That’s a lot of juggling — and a lot of stress.
🎯 What we did:
Broke their mortgage early (penalty ≈ $6,200)
Switched them to a lower-rate cashback mortgage that covered legal + appraisal fees
Rolled all their consumer debt into the new mortgage
✅ The results:
New mortgage payment: $2,439
Monthly savings: $1,126
Just ONE easy payment to manage
And best of all… peace of mind 🙌
➡️ This wasn’t just a debt consolidation — it was a full-on financial reset. Now they’re breathing easier and finally feeling in control again.
Why This Matters
When you feel stuck financially, it’s hard to think about next steps — let alone buying, selling, or investing. But the right mortgage strategy can clear the path, reduce stress, and help you move forward with confidence.
And if you're thinking of selling & buying? This is the time to make sure you are pre-approved and ready to go. Pre-approval is always Step One.
Ready to Explore What’s Possible?
Not sure where you stand? Want help running the numbers?
Let’s chat — I’ll walk you through your options and make sure your mortgage is working for you, not the other way around.
👉 [Book a quick call with me here]
🎁 Bonus for Referrals
When you introduce someone to me by email and they book a call, you’re automatically entered to WIN $2,500 toward your mortgage or rent, through my Win Your Mortgage Payment monthly giveaway. 🎉
My way of saying thanks for trusting me with your people. 🙏
So if you (or someone you know) feels overwhelmed or unsure if there’s was to save more with their mortgage — send them my way. I’m here to help.
Let’s get you (and your money) working smarter.