Bank of Canada Holds Rate at 2.25% — June 10, 2026

Darlene Nieboer • June 10, 2026

The Bank of Canada announced today that it is maintaining its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For Canadian homeowners, buyers, and anyone with a mortgage on the horizon — here's what you need to know.

What the Bank of Canada Said

The Global Picture

The conflict in the Middle East is now in its fourth month. Higher energy prices and disruptions to global supply chains continue to weigh on economic growth worldwide and push inflation higher. At the same time, U.S. trade policy uncertainty remains elevated, with new tariff proposals continuing to create uncertainty for Canadian businesses and exporters.

In the U.S., economic growth remains solid, supported by consumer spending and AI-related investment. In the euro area, growth is subdued. China continues to benefit from strong exports. Canadian financial conditions have loosened somewhat since the April Monetary Policy Report — global equity markets have been buoyant, though bond yields remain volatile. The Canadian dollar has weakened against the U.S. dollar and other currencies.

The Canadian Economy

Canada's GDP edged down by 0.1% in the first quarter — weaker than the Bank had expected. Consumer spending grew 1.4%, but government spending unexpectedly declined. Housing activity also fell, business investment remained weak, exports dropped, and imports rose strongly as inventories were rebuilt.

On the jobs front, employment was up in May — but looking past monthly swings, employment in Canada has been little changed since the start of the year. The unemployment rate continues to hover in the 6.5%–7% range, with the most recent reading at 6.6% in May.

The good news: the Bank expects growth to resume in the second quarter. But even with a rebound, the economy is expected to remain in excess supply for the near term.

Inflation

CPI inflation rose to 2.8% in April, as expected. The increase reflects higher energy prices and the impact of the consumer carbon tax elimination falling out of the 12-month calculation. Importantly, there has been limited evidence so far of that energy price increase spreading broadly into other consumer prices.

Core inflation measures have moved down to around 2%, and the share of CPI components growing above 3% is now close to its historical average — both positive signs. Food price inflation moderated but remains high. Shelter inflation continued to slow.

With global oil prices still roughly $10 per barrel above the Bank's April assumptions, total inflation is expected to hover around 3% in the near term before gradually easing back toward 2%.

Why the Bank Held

The Bank's Governing Council chose to hold at 2.25%, citing weak economic activity in Canada, persistent U.S. trade policy uncertainty, and the ongoing conflict in the Middle East. The Bank is continuing to "look through" the war's near-term impact on headline inflation — but has made clear it will not allow higher energy prices to become persistent inflation. The Bank stands ready to respond as the outlook evolves.

What This Means for Mortgage Holders and Buyers

A rate hold means no immediate change to variable-rate mortgage payments or home equity lines of credit (HELOCs) tied to the prime rate. The prime rate remains at 4.45%.

The broader message from today's decision is one of patience and watchfulness. Canada's economy is soft, inflation is being driven largely by energy prices rather than broad demand, and the Bank is in a careful holding pattern. This environment doesn't signal imminent rate hikes — but it also doesn't yet open the door to cuts.

For anyone renewing a mortgage, considering a purchase, or weighing fixed vs. variable options, the decisions you make over the next few months matter. A thoughtful conversation with your mortgage professional now can make a real difference.

The next scheduled rate announcement is July 15, 2026 .

As always, every borrower's situation is unique. If you have questions about how today's decision affects your mortgage — reach out. I'm here to help you make sense of it.

Information sourced from the Bank of Canada's official press release dated June 10, 2026.

Woman in glasses and rust-colored dress, smiling, arms crossed, leaning against a building.
Darlene Nieboer
GET STARTED
Man with glasses looking at a laptop, resting his chin on his hand. Inside, sunlight and a green sofa.

Getting a Mortgage After Bankruptcy

By Darlene Nieboer • June 3, 2026
Sometimes life throws you a financial curveball. Bankruptcy and consumer proposals happen. It doesn’t mean your life is over, and it doesn’t mean you won’t ever qualify for a mortgage again. The key to financial success here is getting things under control as quickly as possible. You must demonstrate to the potential lenders that what happened in the past won’t happen again in the future. So if you’re thinking about getting a mortgage post-bankruptcy, lenders will want answers to the following questions: How long have you been discharged? Securing a mortgage will be dependent on how long it has been since you were discharged from your bankruptcy or consumer proposal. Most lenders consider the discharge date on both to be your new ground zero. And while there is no legally defined waiting period for when you can apply for a new mortgage post-bankruptcy, what lenders will assess is how you’re managing your finances after your financial troubles. Have you established new credit? You can show lenders that they can trust you after bankruptcy by establishing new credit and managing that credit flawlessly. So as soon as you’ve been discharged, it’s a good idea to get a secured credit card and start rebuilding your credit score. To be considered completely established, you’ll want to have two years of credit history on two trade lines with a credit limit of $2500 on each trade line. You’ll also want to make sure that you have no late or missed payments. How much do you have available for a downpayment? The more money you have to put towards purchasing a property, or the more equity you have in your property in the case of a refinance, the better your chances of getting a mortgage. The more money you bring to the table, the more comfortable a lender will feel about the risk they take of losing their investment should you run into future financial difficulty. What is your total debt service ratio? Another consideration lenders will look at is how much money you make compared to the cost of making your mortgage payments. So it probably goes without saying that the more money you make compared to the amount you want to borrow, the better. Conventional or insured financing. If you’re looking to get the best mortgage products available, here are some of the things a lender will want to see: You’ve been discharged for at least two years plus a day. You’ve established your credit (as listed above). You have at least 5% down for the first $500k of the purchase and 10% down for anything over $500k. If you don’t have a 20% downpayment, you will be required to secure mortgage insurance through CMHC, Sagen (formerly Genworth), or Canada Guaranty. The cost to service the property and all your debts don’t exceed 44% of your gross income. Alternative lending As independent mortgage professionals, our job is to provide solutions and strategies for our clients. As such, in addition to dealing with many traditional lending institutions, we also have access to lenders who specialize in working with clients whose financial situation isn't all that straightforward. These private lenders offer alternative lending solutions that consider the overall strength of your mortgage application. While you won’t qualify for the best rates and terms on the market by going with an alternative lender, if you’re looking for options, you might find that alternative lending is a very reasonable solution for you. Alternative lending isn’t for everyone, but it’s an excellent solution for some, especially if you’ve gone through a bankruptcy or consumer proposal and need a mortgage before fully establishing your credit. Get in touch anytime. So whether you’re looking for a plan to help you qualify for a mortgage with the most favourable terms or if you need something more immediate. Please connect anytime. It would be a pleasure to outline your options and work on a plan to get you a mortgage.
Family gathered together, smiling. One woman has arm around another. An older man smiles with another man.

Mortgage Options for Older Canadians

By Darlene Nieboer • May 27, 2026
Although it’s ideal to have your mortgage paid off by the time you retire, that isn’t always possible in today’s economy. The cost of living is considerably higher than it has ever been, and as a result, many Canadians are putting off retirement, hoping to make just a bit more money to add to that nest egg. So if you find yourself in the position where you’re considering your mortgage options into retirement, you’ve come to the right place. The advantage of working with an independent mortgage professional instead of a single bank is choice. When you work with an independent mortgage professional, you won’t be limited to an individual institution’s products; rather, you will have access to considerably more options. Here are some options available to older Canadians as they plan for mortgage financing through their retirement. Standard Mortgage Financing If you’ve got a steady income, decent credit, and equity in your home, there is no reason you shouldn’t qualify for standard mortgage financing, which usually comes at the lowest interest rates and best terms. Some lenders use pension and retirement income to support your mortgage application even if you’ve already retired. Reverse Mortgage Financing A reverse mortgage allows Canadian homeowners 55 years and older to borrow money from their homes with no proof of income, no credit check, and no health questions. A reverse mortgage is a fabulous mortgage solution that has helped thousands of older Canadians enhance their lifestyle. Home Equity Line of Credit (HELOC) A line of credit secured to the equity you have in your home is an excellent tool to allow you to access money when you need it but not pay interest if you don’t need it. Many older Canadians like the idea of rolling all their expenses and income into one account. Private Financing If you happen to be in a bit of a tight spot, you have a plan but need a financial solution; private financing might be the answer. Indeed not the first choice for many because of the higher interest rates. However, private financing can provide you with options where a traditional bank can’t. If you have any questions about securing mortgage financing for your retirement, please connect anytime. It would be a pleasure to work with you and walk you through all your options.