On Wednesday, the Bank of Canada announced it is holding its policy rate at 2.25%, a sixth consecutive decision without a change. Behind the status quo sits a more interesting story for real estate: the Bank sees the economy picking back up, judges the inflation spike temporary, and notes that the housing market "appears to be stabilizing." Here is what that actually changes for your plans on the South Shore.
The decision in brief
The target for the overnight rate stays at 2.25%, with the bank rate at 2.5%. That makes six holds in a row: the Bank hasn't moved since the fall of 2025. The next decision lands on September 2, 2026, and the next Monetary Policy Report on October 28.
Why not cut, when the economy is still soft? Because inflation climbed to 3.2% in May, pushed up by gasoline prices tied to the conflict in the Middle East. But the Bank is looking past that: excluding gasoline, inflation sits at 2.2%, and core measures remain near 2%. It expects inflation to return to around the 2% target in early 2027. In other words: a temporary flare-up, not a spiral.
What it means for your mortgage rates
If you hold a variable rate, nothing moves: your rate stays where it is at least until September. For fixed rates, which track the bond market rather than the policy rate, the statement notes that Canadian bond yields have changed little and that financial conditions have actually eased since April. The result: a rare stretch of predictability. You can shop for financing or a pre-approval knowing the rules of the game won't change overnight.
The Bank also signals that the economy returned to growth in the second quarter (roughly 2.5% annualized) and projects GDP growth of 0.7% in 2026, then 1.8% in 2027 and 2028. An economy recovering gently, with stable rates: historically, that's an environment where real estate regains momentum.
If you're thinking of buying
The current window is unusual: stable rates, inventory at a ten-year high on the South Shore, and sellers more open to negotiation. The Bank itself observes that housing market activity has been weak but is stabilizing. When a market stabilizes after a trough, those who buy before the rebound buy at the best moment. A pre-approval protects you for 90 to 120 days, which means it covers the September decision.
If you're thinking of selling
Predictable rates bring serious buyers back: they know what their monthly payment will be. But with more than 20,000 properties for sale in Greater Montréal, the price you post on day one is still decisive. My analysis on how to set your asking price in 2026 walks through the method. And if you're wondering what your property is worth in this specific market, the evaluation is free.
If you invest
A policy rate holding steady at 2.25% and a CMHC still active with MLI Select keep multifamily the strongest segment: the median plex price is up 6% year over year on the South Shore, with sales in 39 days. The details are in my analysis on plexes, and on the commercial side, Longueuil is attracting record capital.
My take
The Bank of Canada just gave the real estate market what it has been asking for for two years: predictability. Rates stable until September 2 at a minimum, inflation on track to settle, an economy restarting. On the South Shore, that translates into a window where buyers and sellers can plan without fearing a rate surprise. These windows never last forever.