If you have been waiting for mortgage rates to drop further before making a move, the message from the Bank of Canada has been consistent: the current overnight rate of 2.25% is, in their words, about right. After nine rate cuts between June 2024 and October 2025 that brought the overnight rate down from 5% to 2.25%, the Bank has now held steady for multiple consecutive announcements. That has kept the prime rate at 4.45% and the lowest available five year variable rates around 3.35% — levels not seen since the summer of 2022.
Fixed rates have been slower to respond. Five year fixed rates are hovering in the mid to high 3% range for insured mortgages and around 4.3% to 4.5% for conventional, uninsured products. Global uncertainty — particularly ongoing trade tensions — has kept Government of Canada bond yields elevated near 2.8%, which is the primary driver of fixed rate pricing.
For North Shore buyers, the practical takeaway is straightforward: the rate environment is unlikely to change dramatically in either direction in the near term. The major banks and the Bank of Canada itself are projecting the overnight rate to remain at 2.25% through most of 2026, with any movement more likely to come later in the year if economic conditions weaken further. That stability has a real upside. Buyers can plan with reasonable confidence around their carrying costs. The days of dramatic rate swings — the kind that defined 2022 and 2023 — appear to be behind us for now. And compared to the peak of the rate hiking cycle, today's borrowing costs are meaningfully lower.
The combination of stable rates, elevated inventory, and softer pricing creates an environment where well prepared buyers can take their time, negotiate effectively, and secure properties that were simply not available to them 18 months ago. In a market like North Vancouver's — where the median list price sits around $1.4 million across all property types — even small rate differences compound into meaningful savings over the life of a mortgage.
The caveat, as always, is that rate stability does not mean rates are locked in permanently. Trade developments, inflation data, and employment figures all have the potential to shift the Bank's stance. Getting a rate hold in place before you begin your search is one of the simplest and most valuable steps you can take.
Have questions about how current rates affect your buying power on the North Shore?
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