What the Latest Rate Hold Means for Your Mortgage Strategy

The Bank of Canada held its key interest rate at 2.75% in June, signalling a cautious, wait-and-see approach. Governor Tiff Macklem noted that “the Canadian economy is softer, but not sharply weaker,” and that while inflation has cooled overall, rising grocery costs and trade uncertainties are keeping policy makers on the safe side.

But what does this mean for your mortgage strategy or your plans to buy or sell?

What This Means for Mortgage Rates

The economy is slowing, but it’s not stalling. Inflation dropped to 1.7% in April, yet grocery prices jumped 3.8% year-over-year. This marks the third month in a row where food costs have outpaced general inflation. In Edmonton, inflation dropped to 1.5% in May, offering some local relief.

Add a weaker Canadian dollar and new U.S. tariffs into the mix, and the path ahead for interest rates becomes even harder to predict.

• Fixed-rate insured mortgages are trending slightly lower, which may help first-time buyers.

• Uninsured fixed rates remain steady, but lenders are closely watching economic data.

• Variable rates haven’t changed, but any inflation surprises could push the Bank of Canada to act. 

Lenders are competing hard right now, especially the Big 5 Banks. That has opened lower interest rate options for clients, but navigating them takes a bit of strategy.

Advice for Buyers, Sellers, and Self-Employed Borrowers

First-Time Buyers

Now’s a good time to get pre-approved and understand your buying power. Even a small rate shift can change your monthly payment or max budget. 

Sellers

Buyers are still out there, especially with small rate dips. But many are cautious, which makes pricing and presentation even more important. That said, we are facing lower inventory, meaning that if you are planning to sell and buy again, let’s put a strategy together. We want to make sure you’re able to find your new home before you have to move out of your current home.

Self-Employed

With tax season wrapped up, this is probably a great time to look at your financials. Having these updated financial statements and Notices of Assessment (NOA) makes the mortgage planning process so much easier, especially if your income is variable. Lenders like to see consistency over a two-year period. Let’s look at how to present your income clearly so we can secure the best financing options.

My Advice for Albertans

Use the rest of 2025 to get clear on your mortgage strategy. If your renewal is coming up in 2026, now’s the time to explore your options and build in some flexibility. No matter what situation you’re in, it pays to start early.

The best mortgage isn’t just about the rate. It’s about timing, structure, and whether it truly supports your goals.

Let’s run the numbers and find a plan that works for you. Whether you're renewing, buying, or just curious what’s possible, reach out when you’re ready.