Mortgage Digest: Bond yield spike drives latest fixed mortgage rate hikes of up to 30 bps + MORE Mar 22nd

Home buyers waiting for a spring interest-rate drop won’t have much to cheer about this month; the Bank of Canada has opted to leave its benchmark borrowing rate unchanged in its March announcement, marking its third consecutive rate hold.

This means the Bank’s overnight lending rate will remain at 2.25%, with the prime rate used by lenders—also set based on this benchmark—staying at 4.45%. This rate acts as the pricing floor for a number of floating rate borrowing products, including variable mortgage rates, HELOCs, and certain types of loans. The rate has now sat at this level since October 2025, when the Bank delivered the last of its nine-rate-cut series.

This latest rate hold is no surprise to market watchers; Canada’s sluggish job market and overall soft economic performance in 2025 have given the Bank little reason to make a move. The latest February Consumer Price Index report, released by StatCan on March 16, also indicates that inflation growth remains below the Bank’s 2% target at 1…

A new DBRS report suggests the acquisition could strengthen the combined lender’s credit profile, while shifting its mortgage mix and putting pressure on profitability.

Markets are rapidly repricing inflation and rate expectations, driving bond yields higher and triggering a new round of fixed mortgage increases