April is off to a busy start in Canadian real estate. Fixed mortgage rates are climbing, the Bank of Canada is staying put, the Fraser Valley is showing its first signs of a price floor after nearly a year of declines, and the federal government is pushing hard on supply. Here is everything that matters for homeowners and buyers in the Fraser Valley right now.
Bank of Canada Holds at 2.25% for the Third Straight Meeting
The Bank of Canada left its overnight rate unchanged at 2.25% on March 18, 2026, marking three consecutive pauses. According to the Bank of Canada, ongoing global uncertainty, including fresh pressure from oil markets and unpredictable trade conditions, made a move in either direction difficult to justify. The prime rate remains at 4.45%, and the next rate decision is scheduled for April 29.
Markets are pricing in roughly an 88% chance of no change at that meeting. Some economists now expect the 2.25% overnight rate to hold through the rest of 2026. For borrowers in variable-rate mortgages, that is welcome news: your payments are not going anywhere in the near term. Run your numbers anytime with the Browne Mortgage Calculator.
Fixed Rates Are Rising Even as the Bank Holds
Here is the disconnect that is catching many borrowers off guard: the Bank of Canada is holding steady, but fixed mortgage rates are moving higher. According to Nesto, three- and five-year fixed rates increased by roughly 0.5% in the three weeks leading up to early April, with the average five-year fixed now sitting near 4.95%.
Fixed rates track Government of Canada bond yields rather than the overnight rate directly. Those yields have been pushed up by geopolitical uncertainty, pressure from U.S. trade policy, and core inflation that is running near the high end of the Bank’s 2% target. If you are comparing fixed versus variable right now, the spread has narrowed considerably. A conversation with a mortgage broker can help you figure out which makes more sense for your situation.
Fraser Valley Prices Tick Up for the First Time in Nearly a Year
After 11 straight months of benchmark price declines, the Fraser Valley Real Estate Board recorded its first month-over-month price increases in March 2026. According to the FVREB, the composite benchmark price rose 0.3% to $898,300. Single-family detached homes averaged $1,375,600, townhomes hit $772,700, and condos came in at $489,200.
Sales activity totalled 1,007 transactions in March, up 20% from February but still 42% below the ten-year seasonal average. Inventory remains elevated at 9,201 active listings, which keeps the sales-to-active ratio at 11%, still technically a buyer’s market. If you are shopping for a home in Abbotsford, Langley, or Mission, you still have choice and negotiating room. But the data suggests the floor may be forming.
Federal Government Launches Build Canada Homes and GST Relief
The federal government is rolling out its most ambitious housing supply push in decades. According to Housing, Infrastructure and Communities Canada, a new agency called Build Canada Homes (BCH) has been established to drive construction to 500,000 homes per year over the next decade, with $1 billion committed to supportive and transitional housing as a starting point.
More immediately useful for buyers: the GST on new homes up to $1 million has been eliminated for first-time buyers, according to the Prime Minister’s Office, which can save eligible purchasers up to $50,000. A $51 billion Build Communities Strong Fund was also announced to support roads, transit, and infrastructure that unlocks new housing supply. Bill C-26 proposes an additional $1.7 billion to help provinces reduce development levies on new construction. If supply starts catching up to demand, that is good for long-term affordability across the Fraser Valley.
CMHC Reports Housing Starts Holding Steady
New construction activity is holding up. According to BNN Bloomberg, the seasonally adjusted annual rate of housing starts rose 4.5% in February to 250,900 units nationally. British Columbia was a standout, with Vancouver recording a 60% year-over-year jump in starts. Year-to-date, urban housing starts are up 5% compared to the same period in 2025.
March 2026 starts data from CMHC is due on April 17. The trend suggests the supply pipeline is active, which matters for buyers watching new construction options in the Valley.
1.15 Million Canadians Are Renewing Their Mortgages This Year
This is the story that affects the most people. Roughly 60% of all outstanding Canadian mortgages, about 1.15 million of them, are coming up for renewal in 2026. According to Ratehub, most of these originated in 2020 and 2021 at rates well below 2%. Many five-year fixed holders are renewing into rates near 5%, which translates to an average payment increase of 15% to 20%.
To put that in real terms: a $500,000 mortgage renewing from 1.39% to 3.69% adds roughly $567 per month to your payment. Mortgage Professionals Canada and CMHC both describe the impact as “meaningful but manageable” for most borrowers, particularly because the Bank of Canada rate cuts in 2024 and 2025 already reduced the overnight rate significantly from its 2023 peak. Still, if your renewal is coming up this year, shopping early and knowing your options can save you real money.
What This Means For You
If you are buying in the Fraser Valley right now, you are entering a market with unusual advantages. Inventory is still elevated, prices are near a multi-year floor, and sellers are negotiating. The first MoM price gains in nearly a year suggest this window may not stay open much longer, but it has not closed yet.
If you are holding a variable-rate mortgage, the Bank of Canada’s pause is working in your favour. Your payments are stable, and the April 29 decision is unlikely to change that. Fixed rates are a different story: if you are considering locking in, act sooner rather than later given the recent upward movement in bond yields.
If you are renewing this year, treat it like a negotiation, not a formality. Your current lender will offer you a rate, but it may not be the best rate available. Comparing offers and working with a broker costs nothing and could save you thousands over your next term.
And if you are a first-time buyer eyeing new construction, the GST elimination on homes up to $1 million is real, meaningful money. Factor it into your budget and make sure your pre-approval reflects the true cost of ownership.
The team at Browne Mortgage is here to help you navigate all of it. Whether you are buying, renewing, or just trying to figure out your options in a changing rate environment, we work for you, not the banks.
