10/29/2026
Today, the Bank of Canada announced a 25-basis-point increase to its benchmark policy rate, bringing it to 2.50% (prime moving to 4.70%). This is the first rate increase we've seen in three years.
Why did this happen?
The Bank simply couldn't ignore persistent cost pressures. Between rising global energy costs, gas prices, and trade tariffs, imported expenses have crept up. Their primary goal is to stop these price shocks from spreading more broadly across the economy, while carefully balancing the financial pressure Canadian households face.
Looking Ahead & Your Options:
The market is showing that we will likely see a gradual rate increases over the next 6 to 12 months. Rather than guessing or reacting out of fear, the smartest approach is to look at your real month-to-month cash flow and understand your choices if you are currently on a variable rate mortgage.
1️⃣ The Floating Path: Stay on a variable or adjustable rate while keeping a close eye on your monthly budget, knowing your payments or the amount of interest paid, will adjust with the market.
2️⃣ The Fixed Path: If stretched cash flow or uncertainty worries you, locking into a fixed rate is an option. However, remember that fixed rates follow the bond market and have already risen to reflect future expectations—meaning you could be locking in near the top of the cycle.
Every household's financial situation is unique. If you want to check your pre-approval rate hold, run a side-by-side comparison on our app, or get an independent perspective on whether to float or lock in, we’re here to help you navigate with clarity and confidence.