Bank of Canada Holds Interest Rate at 2.25%: Ottawa Real Estate Update – July 2026
Interest rates play an important role in the decisions Ottawa buyers, sellers, and homeowners make. From mortgage affordability to monthly payments and overall market confidence, even a small change can affect how people plan their next move. With the Bank of Canada announcing its latest rate decision, here’s what the July 2026 update means for Ottawa’s real estate market.
Bank of Canada Holds Interest Rate at 2.25%: What It Means for Ottawa Home Buyers and Sellers
On July 15, 2026, the Bank of Canada announced it will maintain its target for the overnight lending rate at 2.25%, with the Bank Rate at 2.50% and the deposit rate at 2.20%. This marks the sixth consecutive rate hold, providing continued stability for Canadians navigating today's housing market
For buyers, sellers, and homeowners in Ottawa, this continued stability provides more confidence when planning a move. While borrowing costs remain higher than the historic lows of previous years, a steady interest rate environment allows people to make informed real estate decisions without the uncertainty of frequent changes.
A Snapshot of Canada's Economy
According to the Bank of Canada, Canada's economy is beginning to recover after a period of slower growth.
Some of the key highlights from the July Monetary Policy Report include:
Overnight lending rate remains at 2.25%.
CPI inflation reached 3.2% in May, largely due to higher gasoline prices.
Core inflation remains close to the Bank's 2% target, suggesting underlying inflation is more stable.
The Bank expects economic growth to strengthen while inflation gradually returns to around 2% over the coming months, although global events continue to create uncertainty.
What This Means for Ottawa Home Buyers
Stable interest rates provide buyers with greater confidence when planning their next move. With borrowing costs remaining unchanged, buyers can focus on finding the right home rather than worrying about another immediate rate increase.
Here in Ottawa, we're also seeing more inventory than we did a year ago, giving buyers more choice and greater negotiating power.
What This Means for Ottawa Home Sellers
For sellers, today's market continues to reward preparation and strategy.
While buyers are active, they're taking more time to compare properties before making a decision. Homes that are priced appropriately, professionally marketed, and presented well continue to attract serious interest.
July 2026 Bank of Canada Highlights
📌 Overnight Rate: 2.25%
📌 Bank Rate: 2.50%
📌 Deposit Rate: 2.20%
📌 May Inflation (CPI): 3.2%
📌 Core Inflation: Around 2%
📌 Next Interest Rate Announcement: September 2, 2026
Looking Ahead
The Bank of Canada noted that while inflation continues to move toward its target, global economic uncertainty—including trade policies and geopolitical events—means future interest rate decisions will remain data-dependent.
No one can predict exactly when rates may change again, but today's announcement offers welcome stability for anyone planning to buy or sell in the months ahead.
Read the full July 15th report here.
Thinking About Making a Move?
Whether you're buying your first home, preparing to sell, or simply wondering what today's market means for your plans, having the right guidance can make all the difference.
If you'd like to discuss your goals or learn how today's interest rate decision may impact your next move, I'd be happy to help.
Start your home search at OttawaSelect.ca or get in touch to discuss your next move with confidence.
Ready to start your home buying journey in Ottawa? We'd love to be part of it. Reach out to us at OttawaSelect.ca — we work with first-time buyers regularly and know how to make a process that can feel overwhelming feel completely manageable..
