Interest rate announcements from the Bank of Canada (BOC) can shape your home buying or selling plans. With the recent major rate increase announcements one after the other, many people are eager to know when the next one is coming. That way, they can make a strategic decision about buying or selling a home.
This post was first published in 2022. The dates below are from the Bank of Canada’s schedule for that year. Always check the Bank of Canada website for the current dates.
How often the Bank of Canada makes interest rate announcements
A general perception is that the BOC makes rate announcements quarterly. However, that is not true. The Bank sets several dates across the year, and the schedule for 2022 listed eight of them.
Also, the BOC makes several types of announcements. One of these is its decision on the interest rate. Others cover reports and surveys about the economy. So it helps to know which dates matter most for your mortgage.
The Bank of Canada publishes the schedule for the coming year almost halfway through the current year. As a result, you can mark the dates on your calendar months ahead. That makes interest rate announcements one of the few market events you can plan around.
The 2022 schedule of interest rate announcements
For example, in July 2021, the BOC announced its schedule for interest rate announcements as follows:
- Wednesday, January 26*
- Wednesday, March 2
- Wednesday, April 13*
- Wednesday, June 1
- Wednesday, July 13*
- Wednesday, September 8
- Wednesday, October 27*
- Wednesday, December 8
*These are the dates when the BOC publishes its monetary policy.
The announcements are made at 10 am (EST). Then lenders may adjust their own rates soon after. For that reason, many buyers watch these mornings closely.
Other Bank of Canada reports to watch
The Bank of Canada also issues the Business Outlook Survey and the Canadian Survey of Consumer Expectations. These reports show how businesses and households feel about the economy. In turn, they can hint at the thinking behind future interest rate announcements.
The schedule for these reports in 2022 was as follows, released at 10:30 am (WST):
- Monday, January 17
- Monday, April 4
- Monday, July 4
- Monday, October 17
You do not need to read every report in detail. Still, a quick look at the headlines can help you see where things may be heading. Then you can talk it through with your lender or agent.
Why interest rate announcements matter for home buyers and sellers
Whether you take a mortgage or buy with cash, the interest rates in the market affect the value of houses and the mood of the market. When rates rise, buyers can often borrow less. So some buyers step back, and prices can feel the pressure.
On the other hand, when rates fall, more buyers may qualify. Therefore, competition can pick up again. Sellers feel these shifts too, because fewer or more buyers can mean fewer or more offers. In short, interest rate announcements ripple through every part of the housing market.
For a closer look at one of these decisions, read my post on the Bank of Canada’s June 1, 2022 rate increase. It shows how a single decision can change the outlook for buyers.
Rates also matter when you renew. If your term ends soon, a change in the Bank’s rate can raise or lower your next payment. So homeowners who are not buying or selling should still keep an eye on the calendar.
How to plan around the next announcement
I hope this information is useful for your planning and your real estate decisions. Here are a few simple steps to take before the Bank’s next decision:
- Get a mortgage pre-approval with a rate hold, if your lender offers one.
- Know your monthly budget at today’s rate and at a higher rate.
- If you are selling, time your listing with your next purchase in mind.
- Speak with your lender a week or two before the date, not the day after.
Also, remember that no one can promise what the Bank will do. A plan that works at a range of rates is safer than a bet on one outcome. Build some room into your budget, and keep an emergency fund. That way, a surprise at one of the interest rate announcements will not force a rushed decision. You can read more in my post on the next rate announcement in September 2022.
Talk to a Mississauga real estate agent
Do you have questions about buying, selling or planning your next move? I am happy to help. You can reach me through my contact page or call me directly at 416 908 5600. A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage.
Disclaimer: this article was published on 18 January 2025 and reflects the information available at that time. Interest rates, prices, and government programs change, so check the current position before acting on anything here. It is provided for information only and is not financial, mortgage, tax or legal advice. A. Q. Mufti is a registered Sales Representative with RE/MAX Real Estate Centre Inc., Brokerage, Ontario, Canada.
