On December 10, the Bank of Canada held its overnight rate. During my conversation with Jay from the Edmonton Home Team, I explained how this affects variable-rate mortgages, lines of credit, and the prime rate. While many hoped for another rate cut, recent economic data has shifted expectations.
No Change — Why It Matters
Jay asked about the government’s decision, and I explained that markets had anticipated a possible cut, but,
“the market is no longer expecting any interest rate drops, and there’s actually some forecast that we’re going to see interest rate increases starting in mid-2026.”
The Bank’s statement was clear: the current policy rate is “at about the right level to keep inflation close to 2%.” For homebuyers, this means rates may stay steady unless the economy weakens.
Job Numbers Aren’t What They Seem
Canada added 180,000 jobs recently, but,
“93% of those are part-time jobs for 15 to 24-year-olds.”
Full-time jobs, which support mortgage qualification, actually declined. In my own words,
“good news is bad news and bad news is good news.”
The good news is that there are more jobs (albeit part-time ones) and that’s good news for people out of work. The bad news is that when job availability climbs, interest rates don’t drop. So if you’re struggling with your mortgage rate right now, don’t expect lower numbers just yet.
What This Means for Edmonton Homebuyers
Jay said: “Depending on where you are in your home-buying or home-owner journey, whether the news is good or bad really depends.”
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Renewing in 2026? Lower rates help.
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Buying? Stable rates aid budgeting.
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Job hunting? Rates impact qualification.
As a mortgage broker, I guide you through these shifts and help you make confident decisions.
Why Work With Me?
I simplify the market, compare lenders, and break down Bank of Canada updates in plain language. Whether you’re new to Canada or a seasoned homeowner, I help you make smart choices. Contact me today.
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