On October 28, 2026, the Bank of Canada raised its policy rate by a quarter point to 2.50%, its first increase in more than three years. If your mortgage renews in the next year, here is what that move can and can't change.
- The Bank of Canada rate went from 2.25% to 2.50% on October 28.
- It mainly moves variable-rate mortgages. Fixed rates follow bond yields.
- A higher renewal rate can add hundreds of dollars a month. Compare quotes before your offer expires.
Where the Bank of Canada stands
2.50% policy rate, up from 2.25% | Dec 9 next scheduled announcement |
The Bank cited inflation of 3.1% in September and said further increases are possible, while stressing it will “proceed carefully.” This post does not try to predict what happens next.
The part most renewal articles skip
What a payment change looks like
An illustration only: a $500,000 balance, 20 years left to pay off, and Canadian semi-annual compounding. At 2.00% the payment is $2,527 a month. Here is how much more each example rate adds:
| At 3.50% | +$366 | |
| At 4.50% | +$625 | |
| At 5.00% | +$758 |
| Renewal rate | Monthly payment | vs. 2.00% |
| 2.00% | $2,527 | n/a |
| 3.50% | $2,893 | +14.5% |
| 4.50% | $3,152 | +24.7% |
| 5.00% | $3,286 | +30.0% |
Example rates only, not quotes, forecasts or today’s rates. Your number depends on your balance, remaining amortization and the rate you are offered.
What to do before your renewal
1 | Find your renewal date. Check your mortgage statement, then watch for your lender’s offer, which often arrives well before the date. |
2 | Get at least one competing quote. A broker can price the same term across several lenders. You are generally free to compare. |
3 | Work out your payment at a few rates. If a higher payment would strain your budget, deal with it now. |
4 | Talk to your lender early if you expect to struggle. Lenders have the most options before a payment is missed. |
If payments are already behind
Source: Bank of Canada rate decision, October 28, 2026, as reported by Advisor.ca.
This article is for general information only and is not financial or legal advice. Speak with a licensed mortgage broker or a lawyer about your situation. Payment figures are illustrative and not rate quotes.
Comments:
Post Your Comment: