Updated October 28, 2026
Bank of Canada rate decision: October 28, 2026
Don't panic, and don't guess. Send me your mortgage statement and I'll tell you straight whether locking in makes sense for you, even if the answer is stay put. Then I'll keep an eye on it at every Bank of Canada decision.
What happened
- Bank of Canada rate
- 2.25% → 2.50%
- The big banks' prime rate
- 4.45% → 4.70%
- Next decision
- December 9, 2026
It's the first increase since July 2023. The Bank said the outlook for inflation has worsened and that it will "proceed cautiously" from here. It didn't say what it will do next, and I won't guess. The Bank of Canada's announcement
What it means for you
Variable, and your payment moves with prime
Your rate goes up 0.25%, and your payment goes up once your lender moves its prime rate. The extra interest is about $21 a month for every $100,000 you owe.
Variable, and your payment stays the same
Your payment doesn't change, but more of it now goes to interest and less to your balance. If rates keep rising, you can reach your trigger rate, where the payment only covers the interest. It's worth knowing how close you are.
Renewing in the next 12 months
Fixed rates follow bond yields, not the Bank of Canada, and they've been climbing too. Whatever your rate type, it's worth knowing your options before your lender sends its offer, so you're not deciding in a rush.
How much more interest a month?
Enter what you owe on your variable mortgage to see roughly what this change adds to your interest each month.
Want to see fixed and variable side by side? Try it with your own numbers in the Fixed vs Variable Rate Comparator.
About $21 more a month for every $100,000
An estimate: your balance × 0.25% ÷ 12. Your lender's figure can differ a little. With a payment that stays the same, the extra interest comes out of what goes to your balance instead.
Should I lock in to fixed?
Maybe not. Today a 5-year fixed is about 4.29% to 4.89%, and variable is about 3.80% to 4.15%. Fixed still costs more to start, and variable can still come out ahead, even after today's increase.
Rates as of October 28, 2026. The low end of each range can be a promotional or discretionary rate that not everyone qualifies for. These are estimates, not a rate commitment, and rates can change daily.
For most people, two questions decide it:
The payment-shock test. If rates went up another 0.50%, could you handle about $42 more interest a month for every $100,000? If that would strain your budget, the certainty of fixed is worth paying for.
The moving test. Is there a real chance you'll sell, move or refinance in the next few years? Breaking a variable usually costs about three months' interest. Breaking a fixed can cost a lot more.
If you do lock in, your own lender's lock-in rate isn't always the best one out there. I'll compare your lender's lock-in offer with the market, the whole offer and not just the rate, and do the work for you. If staying put or staying with your lender is the best fit, I'll tell you that too.
Free, no obligation
Find out where you stand
Send me your latest mortgage statement. I'll look at your rate, your payment type and your renewal date, and tell you whether to lock in, hold a rate or stay put. Then I'll keep watching it for you at every Bank of Canada decision.
Buying or renewing in the next few months?
A rate hold locks today's rate for up to 120 days. If rates rise you're protected, and if they fall we take the lower one.
It doesn't commit you to anything.