10/28/2026
🏡 **BANK OF CANADA RATE INCREASE — DON'T PANIC!**
**October 28, 2026 | Mortgage Rate Update**
The Bank of Canada announced today that it has increased its key lending rate by **0.25%**.
As a result, financial institutions are expected to begin increasing their prime lending rates over the coming days:
📈 **Current Prime Rate: 4.45%**
📈 **Expected New Prime Rate: 4.70%**
**💰 WHAT DOES THIS MEAN FOR YOUR MORTGAGE PAYMENT?**
The impact may be smaller than you think!
For a variable-rate mortgage with approximately 25 years remaining on the amortization, a 0.25% increase works out to roughly:
- $100,000 mortgage = **$14 more per month**
- $200,000 mortgage = **$28 more per month**
- $300,000 mortgage = **$42 more per month**
- $400,000 mortgage = **$56 more per month**
- $500,000 mortgage = **$70 more per month**
*These are estimates for variable mortgages with payments that adjust when rates change. Actual amounts depend on your mortgage terms.*
**✅ HERE'S THE IMPORTANT PART — VARIABLE RATES ARE STILL VERY COMPETITIVE!**
Even with today's 0.25% increase, **many homeowners with variable-rate mortgages are STILL paying lower interest rates than what's currently available with comparable fixed-rate mortgages!**
That's something worth remembering before making any changes.
If you secured a variable mortgage with a good discount off prime, you may still be in an excellent position.
**One small rate increase does NOT automatically mean switching to a fixed rate is the better decision!**
**🏡 HAVE A VARIABLE MORTGAGE OR HOME EQUITY LINE OF CREDIT? DON'T PANIC!**
✅ Variable mortgages remain an attractive option for many homeowners.
✅ This is the first increase in quite some time, following several rate reductions.
✅ For a Home Equity Line of Credit (HELOC), the additional interest is approximately **$20.83 per month for every $100,000 borrowed**, assuming interest-only payments.
✅ If you have a variable mortgage with fixed payments, your payment may not change immediately, although more of it will go toward interest.
**❤️ MY ADVICE? STAY CALM AND LOOK AT THE BIG PICTURE.**
Mortgage rates naturally fluctuate over time. While nobody welcomes an increase, it's important to remember that **variable-rate mortgages can still offer significant savings compared to fixed rates**, depending on your individual mortgage.
Don't let one rate announcement push you into making a rushed decision.
If you're wondering whether you should stay variable or consider locking into a fixed rate, I'm always happy to review your mortgage and help you make an informed decision.
**The right mortgage decision isn't always about today's headlines — it's about what's best for YOU!**
**Joanne — Your Local Mortgage Broker**
Creative Mortgages
🌐 www.creativemortgages.ca
