10/28/2026
The Bank of Canada raised its policy rate by 0.25% today, bringing it to 2.50%.
The Bank pointed to stronger-than-expected economic growth and more persistent inflation, with elevated energy prices increasing production and transportation costs. It raised the rate to reduce the risk that these pressures spread more broadly into the prices of other goods and services.
As lenders increase their prime rates in response, adjustable-rate mortgage payments and interest costs on HELOCs and lines of credit will rise. Fixed-payment variable mortgages generally keep the same payment, but more will go toward interest and less toward principal.
Existing fixed-rate mortgages are not affected and continue under their current terms. The fixed rates available for a new mortgage, switch, renewal, or refinance may still change with bond yields and lender pricing.
For anyone buying, renewing, or refinancing, now is a good time to review how this change affects your payment comfort, options, and long-term mortgage plan.
No projections. No promises. No fear. Just clarity.
