🎯 Lock in your rate during the stable window
BoC held the policy rate at 2.25%. Next announcement on June 10, 2026.
Find a real estate broker →The Bank of Canada (BoC) held its policy rate at 2.25% on April 29, 2026, marking the 4th consecutive pause since the 0.50-point cut on October 29, 2025. The bank rate stays at 2.50% and the deposit rate at 2.20%. Against a backdrop of Trump tariffs (50% on steel and aluminum + 25% on derived products since April 6, 2026), the Middle East conflict and Canadian unemployment at 6.7%, the BoC favors stability. The next announcement is scheduled for June 10, 2026. Here is the concrete impact for Quebec buyers and homeowners.
📊 1. Current Policy Rate: 2.25% (held)
2.25%
BoC policy rate (April 29, 2026)
~2.70%
Average variable rate
~3.69%
Average 5-year fixed rate
The Bank of Canada’s policy rate sits at 2.25% since October 29, 2025 (a 0.50-point cut). This represents a cumulative decrease of 2.75 percentage points from the peak of 5.00% reached in July 2023. This significant decline has translated into a notable improvement in affordability across the Quebec real estate market. The prime rate at major Canadian banks currently sits at 4.45%, 2.20 points above the policy rate, and unchangedafter the April 29 decision.
For holders of variable-rate mortgages, the hold means payment stabilityuntil the next decision on June 10, 2026. For those considering a purchase, financing conditions remain the most favorable since 2022. The BoC projects Canadian GDP growth of +1.2% in 2026, +1.6% in 2027 and +1.7% in 2028, with CPI stabilized at 1.8% — below the 2% target.
💡 Did you know? The policy rate directly influences the banks’ prime rate, which serves as the basis for calculating variable rates. Each 0.25% cut to the policy rate is generally passed through in full to the prime rate within days of the announcement.
📈 2. Rate Cut History 2024–2026
Since June 2024, the Bank of Canada has carried out a series of successive rate cuts to support the Canadian economy amid an economic slowdown. Here is the complete path of the policy rate:
| Date | Policy Rate | Change |
|---|---|---|
| July 2023 | 5.00% | Peak |
| June 2024 | 4.75% | -0.25% |
| July 2024 | 4.50% | -0.25% |
| September 2024 | 4.25% | -0.25% |
| October 2024 | 3.75% | -0.50% |
| December 2024 | 3.25% | -0.50% |
| January 2025 | 3.00% | -0.25% |
| March 2025 | 2.75% | -0.25% |
| June 2025 | 2.75% | Hold |
| September 2025 | 2.75% | Hold |
| October 29, 2025 | 2.25% | -0.50% |
| December 2025 | 2.25% | Hold |
| January 2026 | 2.25% | Hold |
| March 2026 | 2.25% | Hold |
| April 29, 2026 | 2.25% | Hold |
The cutting cycle totals 2.75 percentage points from the July 2023 peak. After aggressive cuts in late 2024, the BoC adopted a cautious pace in 2025, executing a final 0.50-point cut on October 29, 2025 to bring the rate to 2.25%. Since then, four successive announcements (December 2025, January 2026, March 2026, April 29, 2026) have confirmed the hold, with the BoC favoring stability against trade (Trump tariffs) and geopolitical (Middle East) uncertainties.
💰 3. Impact on Variable Rate
The variable rate is directly linked to the Bank of Canada’s policy rate. Every 0.25% movement is reflected in your monthly payment. Here is the concrete impact for a typical Quebec mortgage:
Reference mortgage: $450,000, 25-year amortization
Current variable rate: ~2.70% (prime 4.45% − 1.75%)
Current monthly payment: ~$2,064
If cut by −0.25%
−$56 / month
That’s −$672 / year
If cut by −0.50%
−$112 / month
That’s −$1,344 / year
For a $450,000 mortgage, each 0.25% policy rate cut saves approximately $56 per month, or $672 per year. Over the full duration of a 5-year term, a 0.25% cut represents total savings of approximately $3,360. Since the 5.00% peak in July 2023, variable rate holders have seen their payment decrease by approximately $504 per month, or over $6,000 per year.
To learn more about choosing between fixed and variable rates, read our article on fixed vs variable mortgage in 2026.
🏦 4. 5-Year Fixed Rate: Trend
Unlike the variable rate, the 5-year fixed rate is not directly tied to the policy rate. Instead, it depends on the yield of 5-year Government of Canada bonds, which reflects market expectations for the future economy. In April 2026, the 5-year fixed rate sits around 3.69%, down from the peak of ~5.50% reached in late 2023.
The spread between the fixed rate (3.69%) and the variable rate (2.70%) is currently ~0.99 percentage points, in favor of variable. Historically, the variable rate offers an advantage over the long term in approximately 80% of 5-year periods. However, the fixed rate provides the security of stable payments, which can be valuable in an uncertain economic climate (Trump tariffs, Middle East).
For a detailed analysis of forecasts, read our article on the Bank of Canada rate forecast for April 2026.
⚠️ Note: rates set by financial institutions can vary significantly from one bank to another. A mortgage broker can negotiate a rate 0.20 to 0.50% lower than the posted rate.
✅ 5. What to Do After the April 29, 2026 Announcement
With the BoC having held the rate at 2.25%, you now have a visibility window until June 10, 2026. Whether you are a buyer, a homeowner with an upcoming renewal, or an investor, here are the concrete steps to take:
1. 📋 Lock in a 120-day pre-approval — the fixed rate is guaranteed even if markets move before June 10. No penalty if you do not buy.
2. 💰 Compare fixed vs variable — With a ~0.99% spread in favor of variable, evaluate your risk tolerance. The BoC remains cautious about Trump tariffs: another cut in June is not ruled out if CPI stays below 2%.
3. 🔄 Renewal coming up? — Start shopping for your rate 4 months before maturity. Compare at least 3 institutions. A mortgage broker can save you thousands of dollars.
4. 📈 Plex investors — Stable rates improve cashflow predictability. Verify net return at a 2.70% variable rate.
The current environment remains favorable for buyers. With a policy rate stabilized at 2.25%, CPI below target (1.8%) and a Quebec market in growth (Montreal single-family March 2026 at $652,250, +6.9% per APCIQ), this is an ideal time to secure financing. A trusted real estate broker can guide you through the process.
❓ 6. Frequently Asked Questions (FAQ)
What is the Bank of Canada policy rate after April 29, 2026?
The Bank of Canada policy rate is held at 2.25% since the October 29, 2025 cut, with a 4th consecutive pause confirmed on April 29, 2026. The bank rate is at 2.50% and the deposit rate at 2.20%.
When is the next Bank of Canada rate announcement?
The next Bank of Canada policy rate announcement is scheduled for June 10, 2026. The BoC projects GDP growth of +1.2% in 2026, +1.6% in 2027 and +1.7% in 2028.
What is the impact of the hold on my variable mortgage rate?
The variable rate stays at ~2.70% (prime 4.45% − 1.75%), unchanged after the April 29 decision. No immediate change to your monthly payment until the next announcement on June 10, 2026. On a $450,000 mortgage, every future 0.25% move would represent ~$56 per month.
Should I choose a fixed or variable rate in April 2026?
In April 2026, the variable rate (~2.70%) is lower than the 5-year fixed rate (~3.69%) with a ~0.99-point spread in favor of variable. If the BoC holds or cuts again in June, variable keeps its advantage. Fixed offers the security of stable payments against uncertainty (Trump tariffs).
What should I do until the June 10, 2026 announcement?
Lock in a 120-day mortgage pre-approval to secure the current fixed rate. If you have a renewal coming up, start shopping now by comparing at least 3 institutions. Consult a broker to analyze fixed/variable based on your risk tolerance.
Take advantage of stability until June 10
With a policy rate held at 2.25%, this is the ideal moment to lock in a mortgage pre-approval and estimate your property.