Canada's Rate Hold Prolongs Renewal Pressure for Mortgage Brokers

The Bank of Canada is expected to maintain its overnight rate at 2.25 percent on Wednesday, marking a seventh consecutive rate hold.

This decision prolongs a challenging situation for mortgage brokers who are facing renewal conversations with clients whose mortgages are coming due for renewal.

Many Canadian mortgage holders face higher monthly payments as they renew their five-year fixed-rate mortgages at historically low rates from 2021 and 2022 into a very different environment, where payments will increase by an average of 20 percent.

The Bank of Canada rate hold removes one fear: an imminent rate increase. However, it does not lower payments for these clients.