The Bank of Canada has announced that it will hold its policy interest rate at 2.25%, an important update for anyone following the BC real estate market or planning to buy a home. However, many people misunderstand this number, assuming that 2.25% is the mortgage rate they will receive.
This is not correct.
The 2.25% rate is the policy rate that the Bank of Canada uses for lending between financial institutions—commonly known as the overnight rate. This is not the rate that banks offer to consumers...


