The Bank of Canada kept its policy interest rate unchanged at 2.25% on September 2, but this decision came with a message buyers should pay attention to. The Bank said inflation risks have increased because of higher energy prices and new trade tariffs, while Governor Tiff Macklem warned that policy could change if inflation remains too high.
For months, many buyers have been waiting for another rate cut before entering the market. Now the conversation is changing. Instead of asking how soon rates might fall, some economists and financial markets are beginning to consider whether the Bank could eventually need to raise rates again if inflation stays elevated.
For GTA buyers, that matters because waiting for cheaper borrowing may not work as planned. If mortgage rates stay around current levels—or move higher—buyers who are financially ready today may not receive the large payment relief they hoped for later.
For sellers, stable rates can still be positive because they remove some uncertainty. Buyers have a clearer idea of what they can afford, even if financing is not getting cheaper. The market does not necessarily need a rate cut to become more active; sometimes buyers simply need confidence that rates are not changing dramatically.
The takeaway: do not base a home purchase solely on the hope of a future rate cut. The better question is whether the right home is comfortably affordable at today’s payment.
Source: Bank of Canada, September 2, 2026.