10/28/2026
Bank of Canada Raises Interest Rates for the First Time in Three Years!
Today, October 28, the Bank of Canada increased its key interest rate by 0.25%, bringing it to 2.50%.
Why did rates increase?
Inflation remains higher than the Bank would like, sitting around 3%, with expectations it could reach 3.5% by the end of the year.
Higher oil and energy prices are increasing transportation and production costs, which could eventually mean higher prices for everyday goods and services.
Canada’s economy has also been performing better than expected, giving the Bank room to increase rates to help control inflation.
What is the Bank watching?
The Bank will be closely monitoring inflation, energy prices, employment, economic growth and the impact of ongoing trade uncertainty with the United States.
While further rate increases are possible, the Bank has indicated it will proceed cautiously.
What does this mean for your mortgage?
If you have a variable rate mortgage, your interest rate may increase by 0.25%, depending on your lender and mortgage product.
If you have a fixed rate mortgage, your current rate and payments will remain unchanged until your term ends.
Next Rate Announcement: December 9, 2026
If you have questions about how this announcement impacts your mortgage, upcoming renewal or homebuying plans, feel free to reach out!
