Mortgage rates moved up this week for the first time in more than three years. The Bank of Canada raised its policy rate to 2.50% on October 28, 2026, and the big banks raised prime to 4.70% on October 29 — so if you hold a variable mortgage or a HELOC, your payment is going up. Here is what changed, sourced and dated, and what it means for Edmonton borrowers.

This is the mortgage half of this week’s Minute. The Edmonton home-market half — 435 sales last week and a balanced market — is on our sister site: Edmonton Home Market Minute

Bank of Canada hikes to 2.50%

On October 28, 2026, the Bank of Canada raised its policy rate from 2.25% to 2.50% — its first increase since July 2023, after seven holds. The Bank acted to stop high energy prices spreading to other prices. September inflation was 3.1% (Statistics Canada); the Bank expects inflation around 3.5% by year-end and around 3% through much of 2027, and said a further hike could be needed. The next decision is December 9, 2026.

What it means for you: This is not a return to 5% — 2.50% sits below the Bank’s 2.75% neutral midpoint — but do not budget on cuts being next.

Prime rose to 4.70% — and fixed rates follow bonds, not the Bank

The big banks raised prime from 4.45% to 4.70% effective October 29, 2026, which lifts variable mortgages and HELOCs directly. Fixed rates follow bond yields instead: the 5-year Government of Canada yield closed at 3.62% on October 28, below its 3.73% September high.

What it means for you: Variable or HELOC? Check your new payment amount this month. Fixed? Nothing changes until renewal — but renewal math should use today’s numbers, not last month’s.

Renewing, buying, or not sure your current setup still fits? Start with a free check: Pre-Approval & Refinance Check — a real pre-approval is a lender-reviewed file that holds your rate for 90–120 days while you shop.

CMHC: arrears are regional — Alberta is improving

CMHC’s Residential Mortgage Industry Report (October 27, 2026) put Ontario arrears (90+ days) at 0.32% in Q2 2026, up from 0.21% a year earlier, and expects them to rise through mid-2027, mainly around Toronto and Hamilton. In Alberta and Saskatchewan, arrears have declined and are expected to stay stable.

What it means for you: The stress headline is not Edmonton’s story — but if a renewal will be tight, starting early is what keeps your options open.

Frequently asked questions

Did the Bank of Canada raise rates in October 2026?

Yes. On October 28, 2026, the Bank of Canada raised its policy rate 25 basis points, from 2.25% to 2.50% — its first hike since July 2023. The next decision is December 9, 2026.

What is the prime rate in Canada now?

4.70%. The big banks raised prime from 4.45% to 4.70% effective October 29, 2026, following the Bank’s October 28 hike.

What happens to my variable mortgage when prime rises?

Your rate moves with prime, so the October 29, 2026 move to 4.70% raises the interest on variable mortgages and HELOCs — check your new payment. Fixed-rate mortgages do not change until renewal.

Are mortgage arrears rising in Alberta?

No. CMHC’s October 27, 2026 report says arrears in Alberta and Saskatchewan have declined and are expected to remain stable — the increases are concentrated in Ontario (0.32% in Q2 2026), mainly around Toronto and Hamilton.

Variable, renewing soon, or buying this winter? Run your numbers at today’s rates before the December 9 decision. Start here: Pre-Approval & Refinance Check or call 780-720-8240 and I will walk you through it.

By Travis Bannert, Realtor and Mortgage Broker | Next Door Mortgages, BFL Dominion Lending Centres | 780-720-8240