By Jatin Sood, Mortgage Agent Level 2, Brampton · Updated November 6, 2026
Quick answer: On October 28, 2026 the Bank of Canada raised its policy rate by 0.25 percentage points to 2.5%, and Canada’s six big banks raised their prime rate from 4.45% to 4.70% the next day. If your variable-rate mortgage has adjustable payments, your payment usually goes up. If it has fixed payments, your payment usually stays the same but more of it goes to interest, so your balance shrinks more slowly. Fixed-rate mortgages don’t change until renewal.
What did the Bank of Canada announce on October 28, 2026?
The Bank raised its target for the overnight rate by 25 basis points, to 2.5%. In its release, the Bank said inflation is “higher and more persistent” than it expected in July and that it wants to reduce the risk that high energy prices spread to the prices of other goods and services.
Lenders set their prime rate themselves, but they usually follow the Bank’s moves. RBC, TD, BMO, CIBC, Scotiabank and National Bank raised prime to 4.70%, effective October 29 (Canadian Mortgage Professional, October 29, 2026). Your lender’s prime rate is the one in your mortgage contract, so check your own statement or online banking.
Will my variable-rate mortgage payment go up?
It depends on which kind of variable mortgage you have. The Financial Consumer Agency of Canada (FCAC) describes two types:
- Adjustable payments. “With adjustable payments, the amount of your payment will change if the rate changes.” Your lender usually sends a notice with the new payment and the date it starts.
- Fixed payments with a variable rate. Your payment stays the same. FCAC explains that “when interest rates rise, more of each payment automatically goes toward interest costs.” You don’t feel it in your bank account, but you pay down less of the balance each month.
Not sure which one you have? Your mortgage commitment or your lender’s annual statement says so. Your lender can also tell you over the phone.
What is a trigger rate, and should I worry about it?
With a fixed-payment variable mortgage, there is a point where your regular payment only covers the interest. Lenders often call this the trigger rate. Past that point, none of your payment reduces the principal, and FCAC warns that the amount you owe could go up.
What happens next depends on your contract. Some lenders raise your payment, ask for a lump sum or adjust your amortization. Only your lender can tell you your trigger rate and what your contract says. Ask them for it in writing.
A single 0.25-point move doesn’t push everyone to their trigger rate. Mortgages taken out when rates were very low are the ones to check first.
I have a fixed-rate mortgage. Does this affect me?
Not during your current term. Your rate and payment are set until your renewal date. What changes is the rate you may be offered when you renew. If you renew in 2027, it’s worth looking at your options a few months before your maturity date rather than signing the renewal letter as it arrives (see our mortgage renewal page).
A home equity line of credit (HELOC) is usually tied to prime, so its interest cost rose on October 29. If you only pay the interest each month, that amount went up.
What can I do now if my payment or balance worries me?
These are common steps people take. Which ones fit depends on your lender, your contract and your budget, so ask before you act:
- Ask your lender three questions: Do I have adjustable or fixed payments? What is my trigger rate? What happens if I reach it?
- Check your prepayment privileges. Many mortgages allow a yearly lump sum or a payment increase without a penalty, up to a limit. Read how prepayment penalties work before you pay more than your privilege allows.
- Ask what it would cost to convert to a fixed rate. Some lenders allow it during the term. Get the rate, the term and any fees in writing, and compare them with staying variable.
- Look at your whole budget. If several debts are tied to prime (HELOC, line of credit, car loan), the increase adds up.
- Plan your renewal early. You can compare offers from other lenders at maturity. A licensed mortgage agent can show you what’s available. Not every borrower will qualify for a switch; the federal stress test rules and your income still apply.
Nobody can tell you for certain what rates will do next. Be careful with anyone who promises a rate or an approval.
When is the next Bank of Canada announcement?
The next scheduled rate announcement is December 9, 2026 (Bank of Canada). Prime rates usually move the day after a Bank of Canada change, not on the announcement day.
Need someone to walk you through your statement?
If you’d like help reading your mortgage statement or planning a 2027 renewal, you can contact Jatin for a no-pressure conversation in English, Punjabi or Hindi. You can also start with the free mortgage readiness check.
FAQ
Did my mortgage rate change on October 28 or October 29?
The Bank of Canada announced on October 28. The big banks’ prime rate changed on October 29. Your lender’s notice gives the exact date for your mortgage.
My payment didn’t change. Does that mean I’m not affected?
Not necessarily. If you have fixed payments, the same payment now pays more interest and less principal. Your annual statement shows how much principal you paid.
Can I switch from a variable to a fixed rate in the middle of my term?
Many lenders allow it, but rules and costs differ. Ask your lender for the rate, term and any fees in writing before you decide.
Will rates keep going up?
No one can say for sure. The Bank of Canada explains its reasons in each announcement; the next one is December 9, 2026.
Should I break my mortgage now?
Breaking a mortgage can mean a prepayment penalty. Get the exact penalty from your lender in writing and compare it with your other options before deciding.
Sources (checked November 2, 2026)
- Bank of Canada, “Bank of Canada raises the policy rate by 25 basis points to 2½%”, October 28, 2026: bankofcanada.ca
- Canadian Mortgage Professional, “Prime rate hits 4.70% today as big banks act on BoC hike”, October 29, 2026: mpamag.com
- Financial Consumer Agency of Canada, “Choosing a mortgage that’s right for you” (variable rates, fixed vs adjustable payments), date modified 2025-10-15, on canada.ca
Related reading: Fixed vs variable: which one is right for you? · Mortgage stress test in Canada (2026)
This article is general information, not advice for your situation. Rates, products and approvals depend on the lender and your circumstances. Jatin Sood, Mortgage Agent Level 2, Lic. #M24002757, The Mortgage Centre – Hard Money Approvals, Brokerage #12880.