10/28/2026
Bank of Canada Raises Rates for the First Time Since 2023
This morning the Bank of Canada raised its key policy rate by 0.25%, from 2.25% to 2.50%. It's the first increase in over three years.
Why did they raise?
* Inflation is running hot again. September inflation came in at 3.1%, and the Bank says the inflation outlook has gotten worse since the summer.
* Energy prices. Higher oil prices, and especially gasoline and diesel costs, are squeezing households and businesses. The Bank is acting now to stop those costs from spreading into the price of everything else.
* The economy is holding up. Exports and business and government investment are still supporting growth, which gave the Bank room to act.
The Bank also said more increases are possible, but it plans to move carefully.
What it means for your mortgage:
* Variable-rate mortgage (fixed payment): Your payment stays the same, but more of it now goes to interest and less to principal. That can stretch out how long it takes to pay down your mortgage.
* Adjustable-rate mortgage (payment moves with prime): Your payment goes up. Expect your lender to adjust it within the next few weeks. A rough guide is about $13–$15 more per month for every $100,000 of mortgage balance.
* Fixed-rate mortgage: No change. Your rate and payment are locked in until your term ends. Today's decision only matters to you if you’re up for renewal.
The biggest question isn’t just where rates are going. It’s whether your mortgage still fits your financial goals.
📩 Message me to review your mortgage options.
📣 Next Bank of Canada decision: December 9, 2026.
