Bank of Canada
Bank of Canada Holds at 2.25% — What It Means for July 2026 Renewals
The Bank of Canada held its target for the overnight rate at 2.25% on June 10, 2026 — the fourth consecutive hold. Major lenders’ prime rate remains 4.45%. The next announcement is scheduled for July 15, 2026.
Fixed vs variable at renewal
With the policy rate stable, the gap between short-term fixed and variable renewal rates has narrowed. Variable products track prime minus a spread; fixed rates follow Government of Canada bond yields.
Neither choice is universally “better” — it depends on your payment tolerance, remaining amortization, and whether you need payment certainty for the next term.
If your renewal is in the next 120 days
- Lock a rate hold while you compare stay vs switch options.
- Remember: straight lender switches skip the OSFI B-20 stress test since November 2024.
- Decode your renewal letter before signing — posted rates are rarely market-best.
Track every BoC decision on our Bank of Canada rate decisions page and rate forecast.