Bank of Canada rate decision offers little relief to homeowners facing mortgage renewals

by Rachelle Younglai

While rates have come down 225 basis points from their peak in 2023, the popular five-year fixed mortgage rate is between 4 and 4.5 per cent, compared with less than 2 per cent in 2020 and 2021.

The Bank of Canada gave borrowers no relief in Wednesday’s rate decision, leaving many homeowners facing higher mortgage payments when they renew their loans this year.

The central bank left its benchmark rate unchanged at 2.75 per cent, which means mortgage rates are still higher than they were five years ago when thousands of Canadians borrowed at record low costs.

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