On March 18, 2026, the Bank of Canada announced it is holding its key overnight interest rate at 2.25%, the third consecutive hold since December 2025. The Bank Rate stays at 2.50% and the deposit rate at 2.20%.

If you're buying or selling a home in the Greater Toronto Area, this decision matters, and it creates a real window of opportunity. Here's what you need to know, and how to take advantage of it.

Why Did the Bank of Canada Hold Interest Rates?

The Bank's decision reflects a cautious, data-driven approach in a period of global economic uncertainty. Three key factors drove the hold:

1. Inflation Is Within Target

Canada's inflation rate remains within the Bank's 1%–3% target band, removing the urgency for further rate increases. With CPI easing to 1.8% in February 2026, policymakers have room to wait.

2. Slower Economic Growth

GDP growth remains muted and the labour market is soft,  unemployment rose to 6.7% in February. Raising rates in this environment would risk slowing the economy further.

3. Geopolitical & Trade Risks

Ongoing tensions in the Middle East are driving energy price volatility, and global trade uncertainty continues to weigh on business investment and export performance. The Bank is choosing stability over action until conditions clarify.

What Does This Mean for GTA Real Estate and Markham in 2026?

According to Michael John Lau and Neeraj Moolchandani of the Kaizen Real Estate Team, a rate hold like this creates short-term market stability that is valuable for both buyers and sellers.

For Markham & GTA Home Buyers:

• Mortgage payments are more predictable, easier to plan and budget

• Buyer confidence rises when rates aren't moving, more people enter the market

• Affordability improves compared to high-rate periods

• Act now before potential rate increases later in 2026

For Markham & GTA Home Sellers:

• Buyers are less hesitant, demand is steadier

• Pricing strategies can be data-driven rather than reactive

• Lower risk of deals collapsing due to sudden financing changes

Will Interest Rates Go Up Again in 2026?

Possibly. Most major financial institutions expect the Bank of Canada to remain on hold in the near term, but rate increases are back on the table later in 2026 if inflation climbs again, particularly driven by energy price shocks from ongoing geopolitical tensions.

The next Bank of Canada rate announcement is April 29, 2026.

The bottom line: the window of stability you have right now may not last. If you're serious about buying or selling in the GTA, now is the time to move with intention.

How This Impacts Buyers and Sellers in the GTA

For Buyers:

• Stable rates mean more predictable mortgage planning

• Opportunity to enter the market before potential future hikes

• Slight improvement in affordability compared to volatile periods

For Sellers:

• Buyers are less hesitant, increasing demand

• Pricing strategies can be more data-driven and stable

• Less risk of deals collapsing due to sudden rate changes

Frequently Asked Questions

What is the Bank of Canada interest rate in March 2026?

The Bank of Canada held its overnight rate at 2.25% on March 18, 2026. The bank rate is 2.50%, and the deposit rate is 2.20%.

Why did the Bank of Canada not raise rates?

Inflation is within the 1–3% target, economic growth is slow, and global uncertainty, especially from Middle East tensions,  makes a cautious hold the prudent choice.

Is now a good time to buy a home in the GTA?

With rates stable, many buyers see this as a strategic window before potential hikes later in 2026. Predictable financing makes planning easier. Speaking with an experienced GTA real estate team is the best first step.

When is the next Bank of Canada rate decision?

The next scheduled rate announcement is April 29, 2026.

Why Work with Michael John Lau & Neeraj Moolchandani?

In a market influenced by interest rate decisions, who you work with matters more than ever. You need a team with proven results, deep local expertise, and a strategy that adapts to changing conditions.

Michael John Lau and Neeraj Moolchandani are trusted names in the Markham and Unionville real estate market, backed by multiple industry awards and a strong track record of success.

🏆 Awards & Achievements

• eXp Icon Award (2024, 2025)

• Realtor of the Year (2021, 2022)

• Diamond Award (2023)

• Titanium Award (2022)

• Platinum Award (2021)

📍 Local Expertise You Can Trust

Recognized as trusted Markham & Unionville real estate experts, they bring:

• In-depth neighborhood knowledge

• Accurate pricing strategies

• Insight into local market trends

📊 Proven Results, Client-Focused Approach

Known for their proven success and client dedication, they offer:

• Strong negotiation skills

• Clear, consistent communication

• Tailored strategies based on your goals
  
  
  

Thinking About Buying or Selling? Let’s Talk

With interest rates holding steady, timing and strategy matter more than ever. Whether you're planning to buy, sell, or invest, having the right guidance can make all the difference.

Contact Kaizen Real Estate today
📞 Call 647-370-8885
📧 Email [email protected]
🌐 Visit www.kaizenrealestate.ca
🗓️ Book a meeting today

👉 Book a consultation nowand take advantage of today’s stable rate environment before the market shifts again.