Bank of Canada Holds Interest Rate—What It Means for You
- Melissa Kuczepa
- Jun 4
- 2 min read
On June 4th, the Bank of Canada decided to keep its key interest rate at 2.75%. This is the second time in a row they’ve held the rate steady. After earlier cuts this year, many Canadians were hoping for another drop — but the Bank is being careful and watching the economy closely.
Let’s look at why they made this decision — and what it means for you if you’re buying a home, refinancing, or renewing your mortgage.
🧠 Why the Bank Is Holding Off
While overall inflation (the rate at which prices go up) is now below the 2% target at 1.7%, not all the news is good.
Core inflation, which removes fast-changing prices like gas and food, is still high at 2.5%
Another key number the Bank watches (called the Trimmed Mean) is at 3.1% — higher than experts expected
And monthly price changes are still rising faster than usual
So, while prices are cooling down in some areas, the Bank is seeing signs that inflation still has some strength. That’s why they decided not to cut rates again just yet.
🌍 The U.S. Economy and Global Uncertainty
Another reason the Bank is being careful? Economic trouble in the United States. Big risks like high debt, new tariffs threats, and a possible recession could slow things down. If the U.S. struggles, Canada will feel the effects too. So again, the Bank is watching closely and waiting.
🏡 What This Means for You
If you’re hoping to buy a home or refinance, here’s the good news: fixed mortgage rates are still lower than earlier this year. Many lenders are already expecting rates to drop later in 2025 — and are adjusting prices ahead of time.
That means:
✅ If you’re a buyer, now is a great time to get pre-approved
✅ If you’re a homeowner, you may be able to refinance and lower your payments
✅ If you’re renewing, you can explore your options before any major changes happen
💬 How I Can Help
The economy is always changing, but you don’t have to figure it all out alone.
As your mortgage agent, I’m here to:
Explain how the rate hold affects you
Look at your numbers and help you build a smart mortgage plan
Give you support and advice — whether you’re ready now or just planning ahead
Have questions? You deserve a mortgage plan that works for you—today and tomorrow.
📩 Send me a message or book a time here to chat.
—Melissa 💙
Melissa Kuczepa, AMPC, Mortgage Agent Level 2
(905) 925-4762
Mortgage Architects #12728
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