Today, the Bank of Canada left its overnight policy rate unchanged at 2.25%, where it has sat since late last year. The hold was widely expected.

The Bank is walking a fine line: a softening economy would normally argue for a rate cut, but energy prices tied to the conflict in the Middle East have pushed inflation higher, ruling out a cut for now. The Bank signalled it remains cautious but flexible, and ready to respond if inflation pressures become persistent.

Market Update: A Mixed Picture

The economic data this spring sent conflicting signals:

• The economy contracted in the first quarter, the second straight quarterly decline and the technical definition of a recession, though early April estimates point to a modest rebound.

• The job market surprised in May, adding 88,000 jobs and pulling unemployment down to 6.6% from 6.9%.

• Headline inflation ran at 2.8% in April on higher gas prices, while core inflation eased to 2.0%, right on the Bank’s target.

Where do rates go from here? Economists are split: several major banks see rates on hold through 2026, with the next move more likely a cut if oil retreats and the economy stays soft, while bond markets are still pricing in a possible hike later this year. Either way, don’t expect dramatic moves soon.

What This Means for Your Mortgage

• Variable-rate holders: no change to your rate or payment.

• Renewing soon? Fixed rates follow the bond market, which has been jumpy. If your renewal is within 12 months, it’s worth securing a rate hold early.

• Thinking of buying? Stable rates mean predictable pre-approvals, and a 120-day rate hold protects you while you shop.

Cottage, Cabin, or Vacation Property on Your Wish List?

As summer arrives, many Canadians start dreaming about weekends at the lake, family gatherings at a cabin, or owning a vacation property where memories can be made for years to come. What many people don’t realize is that purchasing a second home may be more attainable than they think.

One of the most common misconceptions we hear is that a vacation property automatically requires a 20% down payment. While that is true for many investment and rental properties, there are programs available that may allow qualified buyers to purchase certain secondary or vacation homes with as little as 5% down.

These programs are designed for properties that will be used by the owners or their families for personal enjoyment rather than as rental or income-producing properties. Depending on the location and characteristics of the property, financing may be available on cottages, cabins, lakefront properties, ski properties, and other recreational homes.

That said, not all vacation properties are treated the same by lenders. Factors such as year-round road access, heating, water source, septic systems, and overall marketability can all influence the financing options available. A property that qualifies with 5% down may look very different from one requiring 10%, 20%, or more.

For homeowners who have built equity in their current residence, that equity may also be put toward the purchase, reducing the cash needed upfront.

If a cabin, cottage, or vacation property is part of your long-term plan, it’s worth exploring your options sooner rather than later. Understanding your financing options before you begin shopping makes the whole process much smoother.

Questions about your rate, renewal, or buying plans?

Reach out by email or book a quick call. We’re always happy to run the numbers with you.

Leanne Funston
Mortgage Broker
250-320-5514
[email protected]

Rates and market information current as of June 10, 2026, and subject to change. This newsletter is for general information only and is not financial advice.