What Today’s Interest Rates Mean for Peterborough Buyers and Sellers in 2026

Interest rates continue to be one of the biggest drivers of real estate decisions in 2026. Buyers are asking how rates affect affordability, while sellers are wondering whether higher borrowing costs are slowing demand.

While national headlines can feel overwhelming, the real impact of interest rates is best understood locally. Here’s what today’s interest rate environment means for Peterborough buyers and sellers, and how to adjust your strategy moving forward.

Current Mortgage Rates in Canada (January 2026)

As of Tuesday, January 20th, here’s where mortgage rates are sitting:

• 1-Year Fixed: 4.84%

• 2-Year Fixed: 4.84%

• 3-Year Fixed: 4.09%

• 4-Year Fixed: 4.19%

• 5-Year Fixed: 4.09%

• Best Variable Rate: 3.70%

Bond rates are currently at 2.86%, unchanged from last week.
The next Bank of Canada rate announcement is January 28.

These rates have helped bring more stability to the market compared to the volatility of recent years, allowing both buyers and sellers to plan with greater confidence.

What Today’s Interest Rates Mean for Peterborough Buyers

For buyers in Peterborough, interest rates directly affect purchasing power and monthly payments. While buyers may qualify for less than they would have during the ultra-low rate years, the upside is reduced competition in many price ranges.

In 2026, buyers are benefiting from:

• More balanced negotiations

• Fewer multiple-offer situations

• The return of financing and inspection conditions

• Increased choice and time to decide

Many buyers are choosing shorter fixed terms or variable rates, with the flexibility to reassess as rates change. The most important step is understanding what fits your long-term financial comfort, not just your maximum approval amount.

Working with a knowledgeable mortgage professional is key. Our in-house mortgage broker, Mike Jones with Centum Mortgage, helps buyers explore rate options, term strategies, and payment scenarios so there are no surprises along the way.

What Today’s Interest Rates Mean for Peterborough Sellers

For sellers, interest rates have changed buyer behaviour, but they haven’t eliminated demand.

Homes that are priced correctly and show well are still selling in Peterborough. Buyers are simply more value-conscious and more selective than they were a few years ago.

In today’s market:

• Pricing based on current conditions is critical

• Overpricing leads to longer days on market

• Early adjustments often result in better final outcomes

Sellers who align their pricing strategy with today’s interest rate reality tend to attract stronger, more serious buyers. The goal is not to chase the market, but to position your home competitively from the start.

Is Peterborough a Buyer’s or Seller’s Market in 2026?

The answer depends on the property type, location, and price point.

Some segments of the Peterborough real estate market favour buyers, while others remain competitive. Entry-level homes and well-maintained properties in desirable neighbourhoods continue to see strong interest, even with higher borrowing costs.

Interest rates affect every buyer and seller differently, which is why local expertise matters more than broad national trends.

What Buyers and Sellers Should Do Next

Buyers should:

• Get pre-approved with a mortgage professional

• Understand payment options at today’s rates

• Focus on long-term affordability and lifestyle goals

Sellers should:

• Get an up-to-date market evaluation

• Price based on current buyer behaviour

• Prepare their home to stand out in a more selective market

Final Thoughts

Interest rates are an important factor in real estate decisions, but they don’t tell the whole story. In Peterborough, lifestyle needs, inventory levels, and local demand play just as big a role.

Whether you’re buying or selling in 2026, understanding how today’s interest rates affect your situation and working with the right local professionals make all the difference.

If you’d like to discuss your buying or selling plans or want to explore mortgage options with Mike Jones at Centum Mortgage, we’re happy to connect you and help you move forward with confidence. Give us a call at 70-743-4444 and we’ll be happy to connect you!