Prime moved to 4.70% on October 29, 2026 (TD mortgage prime 4.85%). The next Bank of Canada decision is December 9, 2026.

The Bank of Canada raised its policy rate to 2.50% on October 28, 2026, and prime moved to 4.70%. On a variable mortgage that raises your payment or pushes you toward your trigger rate; on a fixed term, nothing changes until renewal. The next decision is December 9, 2026.

Short on time? Watch the 1-minute version: https://www.youtube.com/shorts/3uO5rgc4Sgw

The Bank of Canada raised its policy rate by 25 basis points this morning, to 2.50% — the first increase since July 2023, after holding at 2.25% since October 2025. The Bank pointed to inflation that has been around 3% since April and is expected to rise to about 3.5% by year-end, and said there could be a need to increase the policy rate further, though it agreed to proceed carefully. The next decision is December 9, 2026.

Photo via Wikimedia Commons.

If you have a variable or adjustable-rate mortgage

Your rate is tied to your lender’s prime rate, which lenders typically adjust in the days following a Bank of Canada move. On an adjustable-payment variable, a 0.25% rise works out to roughly $13 more per month per $100,000 owed — about $64 a month on a $500,000 balance with 20 years of amortization left. On a fixed-payment variable, your payment stays the same but more of it goes to interest and less to principal — check where you stand against your trigger rate.

If you have a fixed rate

Nothing changes today. Fixed rates are set by bond yields, not by this decision, and markets had largely priced a hike in before this morning.

Buying or renewing in the next 120 days?

A rate hold can lock today’s fixed pricing while you decide, and if pricing drops before closing you take the lower rate. That window matters more after a hike, not less — especially with the Bank signalling it may need to go further.

A note on posted rates

These posted rates are a starting point — not the final word, and not take-it-or-leave-it. Rates are sometimes negotiable depending on the person and their situation. We work with multiple lenders through BFL Dominion Lending Centres, and those lenders offer different products — sometimes more competitive than the rates shown in any one table, which is one snapshot, not the whole market we can access. Contact us and we’ll shop across lenders for you to find the product and rate that fit your file.

Call Travis Bannert at (780) 720-8240 or start with the Pre-Approval & Refinance Check — I’ll try to call you this week, and if you reply with a good time we can run your exact numbers.

Frequently asked questions

What did the Bank of Canada do on October 28, 2026? It raised its policy rate by 25 basis points to 2.50% — the first increase since July 2023. The next decision is December 9, 2026.

Does a Bank of Canada hike change my fixed mortgage payment? No. A fixed payment stays the same for the whole term. Fixed rates for new borrowers follow bond yields, not the policy rate directly.

How much does a 0.25% rise add to a variable mortgage payment? On an adjustable-payment variable, roughly $13 more per month per $100,000 owed — about $64 a month on a $500,000 balance with 20 years of amortization left.

Have lender prime rates already moved? Not yet on the Dominion Lending Centres posted table checked the morning of October 28 — lenders typically adjust prime in the days following a decision, so check your own lender’s notice before assuming your new payment.

By Travis Bannert, Mortgage Broker | Next Door Mortgages, BFL Dominion Lending Centres | (780) 720-8240 | nextdoormortgages.com