New Year, New Mortgage Strategy: What the Upcoming Bank of Canada Rate Announcement Could Mean for You
As we kick off 2026, many Canadian homeowners and homebuyers are asking the same question:
Are interest rates finally coming down?
With the first Bank of Canada interest rate announcement of 2026 scheduled in just days, this is an important moment to pause, review your mortgage, and make sure you’re positioned to take advantage of any changes.
I’m Rob Skoko, a mortgage broker with Skoko Mortgages, helping clients across British Columbia and Alberta, and here’s what you should know heading into the new year.
Why the January 2026 Bank of Canada Rate Decision Matters
The Bank of Canada’s overnight rate directly influences variable mortgage rates and indirectly impacts fixed rates. Even a small adjustment can affect:
Monthly mortgage payments
Home affordability
Renewal and refinancing strategies
Lenders often begin adjusting pricing ahead of official announcements, which is why preparation matters more than trying to time the market.
Mortgage Renewals in 2026: More Than Just a Rate Decision
If your mortgage is renewing in the next 6 to 12 months, this is the ideal time to step back and look at the bigger picture.
A renewal isn’t just about accepting a new interest rate. It’s also an opportunity to review your overall financial situation and see whether your mortgage can be structured more efficiently.
For many homeowners, this includes:
Reviewing current debts like credit cards, personal loans, or lines of credit
Determining whether higher-interest, unsecured debt can be consolidated into the mortgage
Reducing total monthly payments and improving cash flow
Rolling higher-cost debt into a lower-rate mortgage can significantly reduce monthly expenses and simplify finances, especially when done thoughtfully and with a long-term plan in mind.
Buying a Home in British Columbia or Alberta This Year?
For first-time buyers and move-up buyers, potential rate cuts may translate into:
Increased purchasing power
Lower monthly payments
Improved qualification flexibility
Getting pre-approved early allows you to lock in today’s rates while staying positioned to benefit if rates move lower. I work with buyers throughout BC and Alberta to build a clear, confident strategy before they start shopping.
Is 2026 the Right Time to Refinance?
A changing rate environment often creates opportunities to refinance, but it’s not always about chasing the lowest rate.
Refinancing can also be used to:
Consolidate unsecured, higher-interest debt
Fund renovations or major expenses
Access equity for investments or business purposes
The key is understanding the full cost and long-term impact. My role is to walk you through the numbers so you can decide if refinancing actually makes sense for your situation.
What to Do Before the Bank of Canada Announcement
Before the Bank of Canada makes its first rate decision of 2026, consider:
Reviewing your current mortgage rate, term, and remaining balance
Taking inventory of any higher-interest unsecured debt
Building a plan for renewal, purchase, or refinance
Even if you decide not to make a move right away, having clarity puts you in control.
Work With a Trusted Mortgage Broker in BC and Alberta
At Skoko Mortgages, my focus is helping clients make informed, confident mortgage decisions, not just at renewal, but throughout every stage of homeownership.
Whether you’re renewing, buying, refinancing, or simply looking for honest advice, I’m here to help.
Frequently Asked Questions About Mortgage Rates in 2026
What does a Bank of Canada interest rate change mean for my mortgage?
A change by the Bank of Canada directly affects variable mortgage rates and can influence fixed rates as lenders adjust pricing. Even small changes can impact monthly payments and borrowing power.
Should I wait until my mortgage renewal to speak with a mortgage broker?
No. Speaking with a mortgage broker early allows you to review options, negotiate better terms, and build a strategy well before your renewal date. This is especially important during periods of rate uncertainty.
Is mortgage renewal a good time to consolidate debt?
Yes. Mortgage renewal is often the best time to review your finances and determine whether higher-interest unsecured debt, such as credit cards or personal loans, can be consolidated into your mortgage to reduce monthly payments and improve cash flow.
Will lower interest rates help me qualify for a mortgage?
Potentially. Lower rates can increase purchasing power and improve qualification, but lender rules and personal finances still matter. A mortgage pre-approval helps clarify exactly what you can afford.
Can I work with Rob Skoko if I live in Alberta or British Columbia?
Yes. Rob Skoko is a licensed mortgage broker helping clients across British Columbia and Alberta with purchases, renewals, refinancing, and debt consolidation strategies.
📞 Rob Skoko
Mortgage Broker | MAXIMUM Mortgage Solutions
🌐 skokomortgages.ca
📍 Serving British Columbia and Alberta
