One day after the Bank's December 10, 2025 announcement, the Bank of Canada has held its target for the overnight rate at 2.25%.
The policy settings
| Measure | Setting | Why it matters |
|---|---|---|
| Target overnight rate | 2.25% | Anchor for the Bank's monetary-policy stance |
| Change at this decision | No change | Most direct signal for variable-rate borrowing |
| Bank Rate | 2.50% | Rate charged on one-day advances to financial institutions |
| Deposit rate | 2.20% | Rate paid on deposits held at the Bank |
Why the Bank makes this choice
Growth and jobs. Third-quarter GDP grows 2.6% because of volatile trade while final domestic demand is flat; unemployment improves to 6.5% in November but hiring intentions remain subdued.
Inflation. October CPI slows to 2.2%, core measures sit between 2.5% and 3% and underlying inflation is assessed near 2.5%, with a tax-holiday base effect ahead.
The policy judgment. The Bank judges 2.25% to be about right if growth and inflation follow the October projection, balancing ongoing slack against trade-related costs.
What changes for borrowers
A hold leaves the Bank's policy setting unchanged; it does not freeze every mortgage quote. Variable products remain anchored to lender prime rates, while fixed offers can still move with bond yields, funding costs, term length and competition.
Because the policy rate does not move, there is no new Bank-driven basis-point change to apply to a balance today. Existing payment pressure remains, and individual lender offers can still change.
When comparing fixed and variable products, look beyond the starting rate. Payment structure, prepayment privileges, portability, penalties and conversion terms affect the cost of changing plans. Ask a lender or licensed mortgage professional to calculate the result for your balance and expected time in the home.
For Greater Sudbury buyers
Start with three numbers: a comfortable monthly housing cost, a purchase-price ceiling and the cash left after closing. Two homes at the same price can carry very different costs once taxes, heating, insurance, condo fees and immediate repairs are included. Use comparable sales and available alternatives to test the price of the specific property.
- Refresh the pre-approval and confirm the rate-hold expiry.
- Test the payment at the offered rate and a higher renewal rate.
- Keep closing costs and a repair reserve separate from the down payment.
- Match financing and inspection conditions to the property’s actual risks.
For owners approaching renewal
Compare equivalent offers before deciding whether to stay with the current lender. Include discharge charges, appraisal or legal requirements and the flexibility you may need during the term. Extending amortization may lower the payment while increasing total interest and slowing principal repayment. A sustainable structure matters more than correctly guessing the next announcement.
For sellers
The rate decision can influence buyer confidence and financing, but it does not automatically reset Greater Sudbury prices. Position the home against current competition and recent relevant sales. Resolve avoidable objections, make the carrying costs and condition clear, and use actual showing and offer feedback to guide adjustments.
What to watch next
Domestic demand, trade volatility, hiring and the temporary inflation noise created by last winter's GST/HST holiday. Those developments will help show whether the Bank’s assessment is holding up. A household plan should still work under more than one rate or market outcome.
Read the official Bank of Canada announcement.
For a local plan, explore the Buyer Experience or Seller Experience. You can also browse the Bank of Canada Decisions & Mortgage Rate Context Archive.
Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage