Bank of Canada Interest Rate Update - September 2026
The Bank of Canada met on September 2, 2026 and held rates steady for the 7th consecutive time. Our lender's prime lending rate is still sitting at 4.45%. No surprises here, this one was expected. As a Kelowna mortgage broker, this is exactly the kind of announcement I want to walk you through.
Read the official BoC announcement here:
https://www.bankofcanada.ca/2026/09/fad-press-release-2026-09-02/
What This Means for You
If you have a variable rate mortgage:
No change to your payment. Your rate stays exactly where it is.
If you have a HELOC:
No change to your rate or payment. If you're carrying a balance, nothing shifts today.
If you have a fixed-payment, variable-interest mortgage:
No change to your payment, and no change to how much of it goes toward interest versus principal. This one's a non-event for you.
However, if you have not decreased your payment since 2024, you may have an opportunity to get a lower payment and make life more affordable today. Reach out to our team for support!
If you have a fixed rate mortgage:
No change, as always. Your rate is locked until renewal regardless of what the Bank of Canada does in the meantime.
Should You Lock In?
A hold doesn't force any decisions, which is honestly the easiest kind of announcement to sit with. If you’re comfortable with your current strategy, staying the course may make sense.
Fixed rates remain elevated amid the conflict in the Middle East, and market volatility continues. For borrowers who prefer certainty, locking in may be worth considering. Those who are more comfortable with risk may prefer to stay variable while we see how geopolitical and trade tensions unfold.
There’s no one-size-fits-all answer. If you’ve been wondering whether it’s time to make a change or you have a renewal coming up, now is a great time to talk through your options.
Some of Our Lowest Fixed Rate Options Today*
1 year @ 4.54%
2 year @ 3.94%
3 year @ 3.99%
4 year @ 4.09%
5 year @ 4.09%
*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.
Despite everything unfolding in the Middle East and the ongoing trade tensions between Canada and the U.S., 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
Nothing here requires action today. But if your renewal is coming up, or a question about your mortgage has been sitting on your to-do list, this is a good, low pressure moment to have a conversation. Please don't hesitate to reach out.
As always, our team is here if you have questions.
Next BoC announcement date: October 28, 2026 stay tuned for our next update then!
