10/29/2026
The Bank of Canada has raised its key interest rate to 2.5%, its first increase in more than three years.
The quarter-point hike comes as inflation climbed to 3.2% in September, driven largely by higher energy costs. The Bank says another increase is possible but that it will proceed carefully as new data comes in.
For homeowners with variable-rate mortgages or lines of credit, borrowing costs may rise. Fixed-rate borrowers won’t see a change until renewal. For buyers, it’s a good time to revisit your pre-approval and budget so you can move with confidence.
The takeaway? Rates are one piece of the picture. Inventory, pricing and local conditions still shape every decision.
Wondering what today’s announcement means for your plans? Speak with your mortgage professional, and let’s connect to talk through your options.