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BoC Decision Day: What a Hold at 2.25% Means for Your Mortgage

  Published September 2, 2026 Tomorrow's date has been sitting at the bottom of every Canadian Money Brief for weeks, and it's finally here. The Bank of Canada announces its overnight rate decision on Wednesday, September 2 at 9:45 a.m. ET, with Governor Tiff Macklem holding a press conference at 10:30. Every economist polled by Reuters — all 35 of them — expects the same outcome: a hold at 2.25%, the eighth straight meeting without a move. That's the headline. The more useful question for your wallet is what a "boring" hold actually does — and doesn't do — to your mortgage, and why two of the Big Six banks think the boring streak is about to end. Why a hold is the almost-certain call The Bank has a genuinely awkward setup heading into this meeting. On one side, the economy just posted its best quarter in years: GDP grew at a 3.3% annualized pace in the second quarter, well ahead of the Bank's own 2.5% forecast, and July's jobs report added a blowout ...
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The alternative minimum tax


 

The alternative minimum tax (AMT) is a secondary way for Canadians to calculate their income tax. It is often applicable when you have claimed a preferential tax deduction or credit, such as capital gains, dividend, or employee stock options.

Each year, your tax owing is calculated under the normal method, which considers the preferential tax credits and deductions. This number is then compared to a second calculation where you don’t receive these same credits and deductions, but your tax is calculated at a lower tax rate. For most instances, the normal calculation will result in more tax owing. When the second calculation results in a higher amount owing, you will pay this higher amount. The difference between the regular tax owing and the second calculation is the AMT. When you are subject to the AMT, this should be viewed as a prepayment of future tax. Over the next seven years, you can recover this amount paid against your regular income tax. In order to recover this AMT in the future, you would have to be taxable in future years, thus if you do not have taxable income in these years, this AMT will be lost.

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