Bank of Canada holds the overnight rate

The Bank held its policy rate steady at the June decision and repeated that it is watching shelter inflation and wage growth before moving again.

Our take: A hold is not a cut. Five-year money is priced off the bond market, not the overnight rate, so your mortgage quote moves before the Bank does. Deals that only work if rates fall are speculation, not underwriting.

In your underwriting: Keep stress-testing at the qualifying rate. If your deal's DSCR only clears 1.15x at today's contract rate, it does not clear.

First-time investors: a rate hold is the environment to negotiate price, not to stretch leverage.

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