Bank of Canada Holds Rates at 2.25%: What This Means for Home Sellers in 2026

The Bank of Canada has announced it will maintain the policy interest rate at 2.25%, choosing stability over reaction as inflation continues to trend toward its 2% target.

For homeowners considering selling, this decision matters more than most headlines suggest.

Stability Creates Buyer Confidence

When rates hold, uncertainty drops. Buyers can qualify with more confidence, lenders can underwrite with consistency, and fewer deals fall apart due to last-minute financing changes. That stability directly benefits sellers by keeping serious buyers active and committed.

Unlike periods of rapid rate movement, today’s environment allows buyers to plan—and when buyers can plan, they act.

Demand Remains Supported

While economic growth is projected to be modest, employment has improved and consumer spending has held up. At the same time, housing supply remains constrained in many Canadian markets. That imbalance continues to support demand, particularly for well-priced and well-presented homes.

For sellers, this means:

• Fewer speculative buyers

• More qualified, intentional purchasers

• Stronger negotiating positions when pricing is right

Pricing Strategy Matters More Than Ever

A stable rate environment doesn’t mean sellers can overreach. Today’s buyers are informed, cautious, and selective. Homes that are priced accurately for current market conditions continue to sell efficiently. Those that chase yesterday’s peak pricing often sit and invite unnecessary negotiation.

The advantage right now belongs to sellers who:

• Price based on current data, not past markets

• Prepare their home properly before listing

• Understand buyer psychology in a rate-stable environment

Timing Over Guesswork

Many sellers wait for “the next rate cut” or try to time the market perfectly. In reality, strong outcomes come from preparation and execution—not prediction.

With rates holding, inflation easing, and demand still present, sellers have clarity. And clarity is valuable.

Bottom Line

The Bank of Canada’s decision to hold rates at 2.25% creates a more predictable environment for real estate transactions. For sellers, that predictability supports buyer confidence, keeps demand engaged, and rewards disciplined strategy.

If you’re considering selling, this isn’t a market to watch from the sidelines. It’s a market to enter with a clear plan, strong positioning, and experienced guidance.