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    Bank of Canada Holds Policy Rate Steady: What It Means for Homeowners and Borrowers

    Date: January 28, 2026 The Bank of Canada has announced its latest decision on monetary policy, holding the  policy interest...

    • Jacky Prevost
    • January 28th, 2026
    • 2 min read
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    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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    About the author

    Jacky Prevost

    778-718-5838
    Jacky brings a wealth of experience to the real estate industry, having honed his skills over 20 years in the entrepreneurial landscape, particularly in marketing, sales, and management. Recognized as a leading figure and top producer in the Central Vancouver Island real estate market over the past decade, Jacky's passion for delivering exceptional results and dedication to clients has facilitated the achievement of their real estate dreams, building a robust network of satisfied homeowners and investors. Hailing from Nanaimo, Jacky's bilingual proficiency in both French and English, combined with his deep roots in the Francophone community, has fostered a keen understanding of the diverse needs of his clientele. This cultural insight has been instrumental in establishing meaningful and lasting relationships with clients from various backgrounds. Operating on the principle that teamwork is the cornerstone of success, Jacky has strategically aligned himself with like-minded business partners, ensuring a seamless and comprehensive real estate experience for every client. His expertise lies in the intricate art of effective marketing and skilled negotiation, coupled with an innate ability to envision the entire real estate process from its inception to its fruitful culmination. Jacky's commitment to his clients goes beyond the transactional; he endeavors to craft a tailored plan that addresses every aspect of their real estate journey, from the initial meeting to the joyous moment of receiving the keys to their new home. He is your trusted advisor, guiding you through every step of the process with unwavering support and expertise. Beyond his professional endeavors, Jacky finds solace and fulfillment in the company of his beloved children, cherished pets, and close-knit family. Engaging in the local sports community and immersing himself in the natural wonders of Vancouver Island, including its scenic trails, majestic mountains, and picturesque waterfronts, are some of his cherished pastimes. If you seek a realtor who not only understands your needs but also empathizes with your aspirations and has a proven track record as a top producer in the local marketplace, look no further. Jacky is the realtor who will ensure your real estate journey is seamless, satisfying, and successful.

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    Coastal Island Real Estate Group - eXp Realty

    103-91 Chapel Street Nanaimo, British Columbia V9R0J3

    778-718-5838
    [email protected]

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