Date: January 28, 2026
The Bank of Canada has announced its latest decision on monetary policy, holding the policy interest rate steady. The prime rate remains at 4.45%, marking no change from the previous rate. This decision has direct implications for homeowners, borrowers, and anyone with variable-rate loans or lines of credit.
What This Means for Variable Rates and Lines of Credit
When the Bank of Canada adjusts its policy rate, it directly impacts variable interest rates and products tied to the prime rate, such as:
Variable-rate mortgages
Home equity lines of credit (HELOCs)
Certain personal and business loans
With the prime rate holding at 4.45%, variable-rate borrowers will see their rates remain stable, which can provide predictability in monthly payments. For homeowners with lines of credit, this stability can also mean no immediate increase in interest costs.
Why the Bank of Canada Might Hold Rates
The central bank often adjusts interest rates to balance economic growth and inflation. Holding the rate steady could signal that the Bank of Canada believes the current rate is appropriate to:
Support continued economic growth
Keep inflation within target levels
Avoid placing undue pressure on borrowers
While there are no changes this time, the decision underscores the Bank’s cautious approach amid ongoing economic shifts.
What Homeowners Should Consider
If you have a variable-rate mortgage or line of credit, now may be a good time to review your options:
Budgeting: Stable rates make it easier to forecast monthly payments.
Refinancing or locking in rates: If you anticipate future rate increases, consider locking in a fixed rate.
Debt management: Maintaining stability in variable-rate debt can help with long-term financial planning.
The Bank of Canada’s decision to hold the policy rate and prime rate steady at 4.45% provides short-term predictability for borrowers with variable-rate products. Staying informed about rate decisions and reviewing your financial strategy regularly remains important.



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