10/28/2026
The Bank of Canada has announced an increase to the overnight policy rate.
Whenever the central bank hikes, Canada’s major financial institutions adjust their Prime Rate shortly after. Here is the breakdown of what to expect and how to protect your cash flow:
Adjustable Variable-Rate Mortgages (ARM): Your monthly payment will increase proportionally with the rate hike (roughly $15–$16 per month for every $100,000 borrowed on a typical 25-year amortization per 25 bps hike).
Static Variable-Rate Mortgages (VRM): If your payments are fixed, more of each payment will go toward interest and less toward paying down your principal balance, extending your amortization.
Fixed-Rate Holders: You are fully insulated from today’s move until your renewal date. However, if your renewal is coming up within the next year, you’ll want to review your budget early to avoid payment shock.
Action Steps You Can Take Right Now:
Check your mortgage portal to confirm your current balance and payment terms.
Consider making a minor voluntary payment increase to keep your amortization on track.
If the volatility is stressing your budget, let's calculate whether locking into a fixed rate makes financial sense for your specific balance.
You don't have to navigate rate changes alone. Send a DM with your approximate balance and current rate, and I will run the numbers to show your exact payment adjustment.
