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What the Latest Bank of Canada Rate Decision Means — What Comes Next (December 2025)?

Welcome to the MyRealEstateCalculator.ca blog — your national hub for mortgage insights, personal finance guidance, and real-estate calculators. Browse this guide to understand your options, then run the numbers using our free tools before you make any decisions.

On December 10, 2025, the Bank of Canada held its target overnight rate at 2.25%. (Reuters, Global News).

As a result, many Canadian lenders’ prime rate remains at roughly 4.45%, keeping borrowing costs stable for homeowners, prospective buyers, and anyone carrying a variable-rate mortgage.

That stability matters. In a period of economic uncertainty — with global trade pressures and shifting inflation dynamics — a steady prime rate offers Canadians a bit of breathing room when budgeting for mortgage payments.

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2026 Bank of Canada Rate-Announcement Schedule:

Wednesday, January 28, 2026
Wednesday, March 18, 2026
Wednesday, April 29, 2026
Wednesday, June 10, 2026
Wednesday, July 15, 2026
Wednesday, September 2, 2026
Wednesday, October 28, 2026
Wednesday, December 9, 2026

Mark these dates on your calendar — they’ll shape borrowing costs, mortgage rates, and overall credit conditions for Canadians.

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Why This Rate Holds Value for Borrowers

For homeowners with variable-rate mortgages or home equity lines of credit (HELOCs), the unchanged overnight rate means predictable monthly payments — at least for now.
For first-time buyers and refinancers, stable prime rates provide clarity: you won’t need to factor unexpected rate spikes into your budgeting or plans.
For those weighing fixed vs. variable mortgage options, a steady policy rate may make variable or adjustable-rate mortgages more attractive, depending on your comfort with interest-rate risk.

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Try It Yourself — Use a Mortgage Payment Calculator

Curious how today’s rates affect your monthly mortgage payment? Plug your loan amount, amortization period, interest rate and amortization into our mortgage payment calculator to see real-world savings (or costs). SEE CALCULATOR BELOW

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Bottom Line: The Bank of Canada’s December 2025 decision to hold overnight rates steady at 2.25% keeps borrowing costs stable and predictable. With eight more rate decisions slated for 2026, now is a smart time to lock in rates, revisit your mortgage strategy, or model how different interest scenarios affect your bottom line using a mortgage payment calculator.

Quick Mortgage Payment Check (Canada)

Estimate your mortgage payment using today’s prime rate of 4.45% and a standard 25-year amortization.

FREE CANADIAN CALCULATOR

See If Refinancing or a Second Mortgage Saves You More

Use this calculator to compare your current high-interest debt with a new mortgage or second mortgage. Adjust the rate, term, and amount to see how much you could save each month and over the life of your debt.

Open Debt Consolidation Calculator → Mortgage Payment Calculator ↗

Frequently Asked Questions

Common questions Canadians ask about this topic, answered in plain language.

When the Bank of Canada changes its overnight rate, lenders usually adjust their prime rate, which directly affects variable-rate mortgages and home equity lines of credit (HELOCs). When rates are held steady, your variable mortgage payment is more predictable. When rates move up or down, your payment or how much goes to interest vs. principal can change. Using a mortgage payment calculator helps you see how different interest rates can impact your monthly payment in seconds.

As of the latest announcement, the Bank of Canada’s policy rate is 2.25%, and most major lenders’ prime rate is around 4.45%. The policy rate is what the Bank of Canada sets; the prime rate is what banks use to price many variable mortgage products and lines of credit. Always check with your lender or use an updated mortgage payment calculator to model your costs with the most current figures.

The Bank of Canada has eight scheduled interest rate announcements in 2026. These decisions can influence mortgage rates, HELOC rates, and other borrowing costs across Canada. Staying aware of these dates helps homeowners, buyers, and investors plan ahead. Leading up to each announcement, you can use a mortgage payment calculator to test “what if” scenarios if rates move up or down.

The easiest way is to use a Canadian mortgage payment calculator. Enter your mortgage amount, amortization period, and an interest rate based on today’s prime. Then, adjust the interest rate slightly higher or lower (for example, +0.25% or +0.50%) to see how your monthly payment would change. This helps you stress-test your budget and decide whether to lock in a fixed rate or stay variable as the Bank of Canada’s 2026 rate announcements approach.

What the Latest Bank of Canada Rate Decision Means — What Comes Next (December 2025)?

Quick Mortgage Payment Check (Canada)

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