The Bank of Canada made its latest interest rate announcement this week, and for many Edmonton homebuyers, the reaction was simple: not much has changed.

I joined Jay for a quick interview on January 28 to break down what the rate hold really means, what to watch next, and how upcoming changes like GST rebates could impact buyers here in Edmonton. If you’re thinking about buying your first home or planning your next move, here’s what you need to know.

Rates are on hold, but the story isn’t over

The Bank of Canada left its key interest rate unchanged. While some people were hoping for early rate cuts in 2026, that didn’t happen.

“We did have a rate announcement,” I said during the interview, “but the rate announcement was that the interest rate by the Bank of Canada will remain unchanged.”

This wasn’t a surprise. Even though Canada saw weaker GDP and employment data toward the end of 2025, the Bank of Canada is taking a cautious approach. Inflation is coming down, but policymakers don’t want to move too fast.

“Inflation is well on track to be closer to 2% throughout the rest of the year,” I explained, “leaving room, if our economy needs it, for the Bank of Canada to cut rates later in the year.”

In other words, rate cuts are still possible in 2026, just not right away.

Why uncertainty is keeping rates steady

One key reason rates are staying put is uncertainty around international trade. In 2026, Canada, the United States, and Mexico are set to renegotiate their free trade agreement. That creates risk, and central banks don’t like making big moves during uncertain times.

“The Bank of Canada doesn’t want to pre-emptively start stimulating our economy,” I said, “but rather be monitoring it and ready to create that stimulus if necessary.”

For Edmonton homebuyers, this means today’s rates are likely to stick around for a while. That stability can actually be helpful when you’re planning a purchase and budgeting for monthly payments.

GST rebates and cost-of-living relief

We also talked about GST relief and rebates, which are especially important for lower- and middle-income families.

“A family of four may see that $1,100 go up to around $1,700 of rebate for the year 2026,” I shared.

This extra money isn’t huge compared to pandemic-era stimulus, and it’s unlikely to cause major inflation. But it does help families manage rising grocery costs and other essentials, which can make homeownership feel more achievable.

New home GST rebates could boost Edmonton buyers

One of the most important developments for Edmonton buyers is the proposed GST rebate on new homes. Builders are already preparing for it, even before it officially becomes law.

Jay noted that many builders are adding clauses to contracts so the rebate can be passed on as soon as it receives royal assent. That could lower purchase prices and improve affordability for first-time buyers.

From my side as a mortgage broker, we’re still waiting on full details.

“Because it’s not in place yet, it’s not really impacting our pre-approvals per se,” I explained. “But we are looking forward to getting some more clarity on exactly how it’s going to be implemented.”

The rebate is expected to apply retroactively to purchases made after last April, which could benefit many buyers once the rules are finalized.

What this means for Edmonton homebuyers

Right now, the market feels a bit like Groundhog Day. Rates haven’t changed, but important shifts may be coming later in 2026. For Edmonton buyers, this is a good time to get informed, plan ahead, and make decisions based on facts, not headlines.

This is where working with a local mortgage broker matters. I help buyers understand how today’s rates, future changes, and government programs actually affect their real numbers.

Watch the full interview and stay informed

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If you’re buying a home in Edmonton and want clear, honest mortgage advice, I’m always happy to help.