Bank of Canada Holds Rate at 2.25% — March 18, 2026

Lori Lalonde • March 18, 2026

The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For anyone watching the mortgage market — whether you're renewing, purchasing, or simply keeping an eye on borrowing costs — here's a breakdown of what was announced and what it may mean for you.

What the Bank of Canada Said

The Global Picture

The Bank noted that global economic growth was tracking at approximately 3% heading into 2026, but conditions have become more uncertain following the outbreak of conflict in the Middle East. Global oil and natural gas prices have risen sharply as a result, which is expected to push inflation higher in the near term. Transportation bottlenecks — including disruptions tied to the Strait of Hormuz — are also raising concerns about the supply of key commodities.

Financial markets have responded: global bond yields have risen, equity prices have declined, and credit spreads have widened. The Canada-U.S. dollar exchange rate has remained relatively stable through all of this.

The Canadian Economy

Canada's GDP contracted 0.6% in the fourth quarter of 2025, somewhat weaker than the Bank had anticipated — though much of this was driven by a larger-than-expected drawdown in inventories, rather than a collapse in consumer spending. In fact, domestic demand grew by more than 2%, supported by consumer and government spending.

Looking ahead, the Bank expects modest economic growth as Canada continues adjusting to U.S. tariffs and ongoing trade policy uncertainty. However, the labour market has softened. Employment gains made in the fourth quarter of 2025 were largely reversed in the first two months of 2026, and the unemployment rate climbed to 6.7% in February.

Inflation

On the inflation front, CPI inflation eased to 1.8% in February, down from 2.3% in January — below the Bank's 2% target. Core inflation measures have also come down and are sitting close to 2%. That said, the recent surge in global energy prices is expected to push gasoline prices — and therefore total inflation — higher in the coming months.

Why the Bank Held

With growth risks tilted to the downside and inflation risks moving upward due to energy prices, the Bank of Canada's Governing Council chose to hold steady at 2.25% rather than move in either direction. The Bank cited the need to assess the evolving impact of U.S. tariffs, trade uncertainty, and the Middle East conflict before making any further adjustments.

In the Bank's own words, they "stand ready to respond as needed" — signalling that future moves remain on the table depending on how conditions develop.

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. However, the language from the Bank signals a cautious, wait-and-see approach in a climate that carries real uncertainty — both on the growth and inflation sides.

The next scheduled rate announcement is April 29, 2026 , at which point a new Monetary Policy Report will also be released with updated economic projections.

As always, every borrower's situation is unique. If you have questions about how today's announcement affects your mortgage — or want to explore your options — don't hesitate to reach out. Staying informed is one of the best tools you have in any rate environment.

Information sourced from the Bank of Canada's official press release dated March 18, 2026.

Lori LaLonde

Is Now the Right Time to Buy? A Look at Canada's 2026 Housing Market

By Lori Lalonde • March 17, 2026
For many Canadians, the dream of homeownership has felt like a moving target. After years of market volatility, shifting interest rates, and economic uncertainty, you might be wondering: is 2026 finally the year to make a move?

Collateral vs. Standard Mortgage: Pros and Cons Explained

By Lori Lalonde • March 17, 2026
Mortgage Registration 101: What You Need to Know About Standard vs. Collateral Charges When you’re setting up a mortgage, it’s easy to focus on the rate and monthly payment—but what about how your mortgage is registered? Most borrowers don’t realize this, but there are two common ways your lender can register your mortgage: as a standard charge or a collateral charge . And that choice can affect your flexibility, future borrowing power, and even your ability to switch lenders. Let’s break down what each option means—without the legal jargon. What Is a Standard Charge Mortgage? Think of this as the “traditional” mortgage. With a standard charge, your lender registers exactly what you’ve borrowed on the property title. Nothing more. Nothing hidden. Just the principal amount of your mortgage. Here’s why that matters: When your mortgage term is up, you can usually switch to another lender easily —often without legal fees, as long as your terms stay the same. If you want to borrow more money down the line (for example, for renovations or debt consolidation), you’ll need to requalify and break your current mortgage , which can come with penalties and legal costs. It’s straightforward, transparent, and offers more freedom to shop around at renewal time. What Is a Collateral Charge Mortgage? This is a more flexible—but also more complex—type of mortgage registration. Instead of registering just the amount you borrow, a collateral charge mortgage registers for a higher amount , often up to 100%–125% of your home’s value . Why? To allow you to borrow additional funds in the future without redoing your mortgage. Here’s the upside: If your home’s value goes up or you need access to funds, a collateral charge mortgage may let you re-borrow more easily (if you qualify). It can bundle other credit products—like a line of credit or personal loan—into one master agreement. But there are trade-offs: You can’t switch lenders at renewal without hiring a lawyer and paying legal fees to discharge the mortgage. It may limit your ability to get a second mortgage with another lender because the original lender is registered for a higher amount than you actually owe. Which One Should You Choose? The answer depends on what matters more to you: flexibility in future borrowing , or freedom to shop around for better rates at renewal. Why Talk to a Mortgage Broker? This kind of decision shouldn’t be made by default—or by what a single lender offers. An independent mortgage professional can help you: Understand how your mortgage is registered (most people never ask!) Compare lenders that offer both options Make sure your mortgage aligns with your future goals—not just today’s needs We look at your full financial picture and explain the fine print so you can move forward with confidence—not surprises. Have questions? Let’s talk. Whether you’re renewing, refinancing, or buying for the first time, I’m here to help you make smart, informed choices about your mortgage. No pressure—just answers.