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Learn about what your payment could be at renewal and how you can save by renewing your mortgage with Perch.
Key Takeaways
- The Bank of Canada has held their policy interest rate, which keeps it at 2.75% as of their latest interest rate announcement.
- The next interest rate announcement is on Wednesday, July 30, 2025.
- Talk to an experienced mortgage advisor to understand the announcement’s impact on your mortgage payment or upcoming renewal
Why did the Bank of Canada cut interest rates?Â
Commentary from Perch’s CEO and Principal Mortgage Broker, Alex Leduc:
The latest Bank of Canada interest rate announcement occurred on June 4, 2025. While GDP growth has slowed, inflation expectations remain high, and unemployment has remained fairly stable. Tariff threats seem to be de-escalating, and the Bank of Canada will hold to see how things continue to develop.
What does this mean for my mortgage with Perch?Â
- For variable rate mortgages (meaning your payments don’t fluctuate as prime rates change): Your existing mortgage payments will remain unchanged. Use our Mortgage Renewal Calculator to get an estimation of what your expected rate and payment will be at your maturity date. If the payment isn’t manageable, connect with your advisor well in advance to look at all options.
- For adjustable rate mortgages (meaning your payments fluctuate as prime rates change): Your payments will remain unchanged for now, but the outlook shows 0.5% in rate cuts are expected from the Bank of Canada throughout 2025-2026 which will slightly lower your mortgage payments.
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In the chart below, you can see how our 5-year variable rate forecast has changed over time based on the Bank of Canada’s interest rate announcements. (Like what you see? Sign up to get free, personalized mortgage insights and our monthly mortgage outlook!)
Will mortgage rates go up in the next 5 years?
We’re seeing a consistent theme of “the Bank of Canada giveth and the Bank taketh” where spreads on variables continue to compress, reducing the net benefit of rate cuts to borrowers. Spreads of Prime-0.85% are weak compared to the Prime-1.40% spreads we saw back in 2020/2021. Long-term rate expectations have reverted to levels we expected in December, with only 2 further cuts expected between now and the end of 2026. Those rate cuts are then expected to be unwound in 2027/2028, so the rates we see now are more or less what she should expect as the long-run normalized rates. We’ll be updating our mortgage rate forecast after every Bank of Canada interest rate announcement – you can subscribe to our mortgage rate forecast for free.
What is the Bank of Canada interest rate today?
The current Bank of Canada interest rate is 2.75%, with a 0.25% rate cut announced on March 12, 2025.
When is the next Bank of Canada interest rate announcement?
The next scheduled Bank of Canada interest rate announcement is Wednesday, July 30, 2025 at 9:45 AM ET.
What are the interest rate announcement dates in 2025?
There are a total of 8 Bank of Canada interest rate announcements each year. The dates for 2025 are as follows:
- Wednesday, January 29, 2025
- Wednesday, March 12, 2025
- Wednesday, April 16, 2025
- Wednesday, June 4, 2025
- Wednesday, July 30, 2025
- Wednesday, September 17, 2025
- Wednesday, October 29, 2025
- Wednesday, December 10, 2025
(Source:Â Bank of Canada)
The Bank of Canada typically makes their interest announcement at 9:45 AM Eastern Time.
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