With borrowing costs still elevated and household budgets stretched, many are wondering:
Will the Bank of Canada cut interest rates again — or are we entering a long-term hold?
Here’s what the latest expert forecasts mean for Ontario mortgage holders, and how private lending options like second mortgages, refinances, and HELOC alternatives are helping homeowners bridge the gap while rates remain high.
📉 Will the Bank of Canada Cut Rates Again? Experts Expect a Hold — Not a Drop
Right now, the overnight lending rate sits at 2.25%, following a cut in October. This benchmark rate influences variable mortgage rates, HELOCs, and private lending pricing across the country.
But despite hopes for more relief, many analysts believe the BoC is done cutting — at least for now.
“The Bank of Canada will now settle into a holding pattern after laying the groundwork in its Oct. 29 announcement,”
— Penelope Graham, Ratehub.ca
The BoC’s messaging has been consistent:
👉 The current rate level is appropriate
👉 Inflation needs to cool further
👉 Businesses still need time to adjust to global trade conditions
This has led to a wave of revised predictions, with some economists walking back earlier expectations of a drop to 2.0% or even 1.75%.
Translation for borrowers:
Don’t expect cheaper bank lending anytime soon.
📊 But Could a Rate Cut Still Happen? One Bank Says “It’s Not Impossible”
Not everyone agrees that a cut is off the table.
According to TD Bank economist Maria Solovieva, the Canadian economy is still aligned with the BoC’s long-term forecasts:
“The underlying rhythm of the economy remains broadly aligned with the bank’s forecast for growth just above 1% through 2026… A future rate cut cannot be fully ruled out.”
However — and this is key — TD notes that GDP would need to cool significantly before the BoC considers further reductions.
Right now, growth rebounded in Q3, even though business investment and household spending slowed, suggesting a mixed but not distressed economy.
🔥 Inflation Is the Biggest Roadblock to Rate Relief
Canada’s inflation rate currently sits at 2.5%, slightly above the BoC’s 2% target.
Graham notes that this is the main reason the BoC likely won’t cut on December 10.
At the same time, inflation isn’t high enough to trigger a hike. The BoC expects:
Shelter costs to ease
Goods prices to stabilize
Tariff removals to reduce cost pressure
Bottom line:
📌 Inflation isn’t low enough for cuts, but not high enough for hikes.
💼 Surprise Job Growth Strengthens the Case for Holding Rates
Despite economic uncertainty, Canada added jobs in November, with employment rising to 60.9%.
Most of the gains came from:
Part-time work
Healthcare & social assistance
Accommodation & food services
Natural resources
A strong labour market typically reduces the need for emergency monetary easing — another reason economists expect Wednesday’s announcement to stay put.
🏡 What This Means for Homeowners: Higher Bank Rates Are Here Longer — But Your Equity Can Still Work for You
With rate cuts unlikely, many borrowers in Toronto, Vaughan, Richmond Hill, Mississauga, Brampton, Hamilton, Barrie, and across Ontario are turning to:
Second mortgages
Equity take-out loans
Debt consolidation refinances
Private mortgage renewals
Banks remain strict. Stress tests remain high.
But private lenders, especially direct lenders like Lendworth, offer fast approvals based on equity, not income or credit.
Lendworth Approves:
✔ No income verification
✔ No credit score requirements
✔ 24–48 hour funding
✔ Up to 75% LTV
✔ Second mortgages, refinancing, HELOC alternatives
When rates are unpredictable, your equity becomes your safety net.
📞 Need Relief Before Rates Drop Again? Lendworth Can Help Today
If you’re feeling pressure from high-interest debt, rising payments, or mortgage renewal shock, you don’t have to wait for the Bank of Canada to make a move.
Lendworth can fund you fast — regardless of bank declines.
🌐 Apply in minutes: www.lendworth.ca/borrow
Your equity is powerful.
Let’s put it to work.