The Bank of Canada met on October 28, 2026 and raised rates by 0.25 percentage points, bringing our lender’s prime lending rate to 4.70%. Not the direction anyone was hoping for and if you're in a variable rate mortgage, I know this one stings. Here's what it actually means for you and what's worth thinking about next.
Read the official BoC announcement here:
https://www.bankofcanada.ca/2026/10/fad-press-release-2026-10-28/
What This Means for You
If you have a variable rate mortgage:
Your payment will increase by about $14 per month for every $100,000 you owe on your mortgage, depending on your rate, amortization and lender. This should show up in your next payment cycle.
If you have a HELOC:
Your payment will also increase, by about $21 per month for every $100,000 outstanding, assuming interest-only payments.
If you have a fixed-payment, variable-interest mortgage:
Your payment likely stays the same for now, but more of it is going toward interest and less toward your principal. If rates continue to rise, you could be approaching your trigger rate, the point where your payment would need to increase to keep pace. If you're not sure where you stand, this is worth a conversation sooner rather than later.
If you have a fixed rate mortgage:
No change for you today. Your rate is locked until your term ends, so this one doesn't touch your payment.
Should You Lock In?
If you're in a variable rate mortgage and today's news has you thinking about locking in, that reaction makes sense. Nobody enjoys watching their payment go up. But a rate hike alone isn't necessarily a reason to switch. What matters more is whether your budget can comfortably absorb further increases if rates continue moving in this direction, and whether the peace of mind of a fixed rate is worth more to you right now than the possibility that variable still outperforms over your term. If your financial picture is tight, or this increase already has you feeling stretched, that's a real signal worth acting on rather than waiting through another announcement. If you're managing fine and have room to absorb more, staying the course is still a reasonable choice. Either way, this is worth a conversation with actual numbers, not just a reaction to the headline.
Some of Our Lowest Fixed Rate Options Today*
1 year @ 4.69%
2 year @ 4.54%
3 year @ 4.29%
4 year @ 4.29%
5 year @ 4.44%
*Conditions apply.
What I'm Doing
At the moment, two of my three mortgages are variable and one is fixed. Earlier this year, I chose to lock in one of my rental properties as a way to diversify my strategy and reduce some of my exposure to rate volatility.
Even with this latest rate increase, I still feel comfortable maintaining a mostly variable strategy for now. I’m keeping a close eye on the market, but at this point, I haven’t seen enough to convince me that locking in my remaining variable mortgages is the right move for me.
Next Steps
If this increase has you rethinking your rate, let's talk before you make a decision. If you’re thinking about locking-in, contact your lender for your fixed rate options and send them my way, I'll help you sort out what makes sense for your budget.
As always, our team is here if you have questions.
Next BoC announcement date: December 9, 2026
