Bank of Canada Rate Hold: What the March 18 Announcement Means for South Surrey Real Estate

Today, March 18, 2026, the Bank of Canada announced it will maintain the policy interest rate at 2.25%. This marks the third consecutive hold of the year, signaling a "wait-and-see" approach as the Canadian economy navigates a complex spring.

While the national headlines focus on global energy volatility and trade uncertainty, homeowners and buyers in South Surrey and White Rock are asking one thing: How does this affect my move?

1. The Variable Rate "Sweet Spot"

With the overnight rate held at 2.25%, the prime rate at most major lenders remains steady at 4.45%.

• The Opportunity: For those currently in variable-rate mortgages in neighborhoods like Morgan Creek or Grandview Heights, your payments remain stable.

• The Strategy: With variable rates currently sitting around 3.35% (lowest since 2022), many of my clients are choosing variable over fixed to maintain flexibility as we head into the 2027 cycle.

2. Fixed Rates & Bond Yields: The "Middle East" Effect

While the Bank of Canada held its rate, the 5-year Government of Canada bond yield has recently climbed above 3%.

• Why it matters: Fixed mortgage rates are tied to bond yields, not the Bank of Canada rate.

• The Trend: We’ve seen some lenders nudge 5-year fixed rates up to roughly 3.94%. If you are pre-approved for a home in Ocean Park or Elgin Chantrell, now is the time to lock in your rate before any further upward pressure from global energy spikes.

3. The "Spring Thaw" Inventory Surge

The March 18 hold reinforces the "Buyer's Market" we've been tracking. With inventory in the Fraser Valley sitting at 51% above the 10-year average, the Bank's decision to stay steady prevents a "buying frenzy," keeping the leverage firmly in the hands of the consumer.

• Days on Market: Expect detached homes to continue averaging 47 days to sell.

• Negotiation Power: Use this period of rate stability to negotiate on price and include subjects for inspection—luxuries that weren't available 24 months ago.

Omeed’s 2026 Mortgage Advice:

"Stability is the word of the day. The Bank of Canada is being 'patient but vigilant.' For my clients, this means the 'bottom' of the interest rate cycle is likely here. Waiting for further cuts in 2026 may be a gamble, as geopolitical risks could actually push rates higher later this year."