10/28/2026
The Bank of Canada raised its benchmark interest rate today by 25 basis points to 2.5%, marking the first policy rate hike since 2023. Policymakers pointed to persistent inflation driven by global energy costs as the key driver.
Here is what this increase means in practical terms:
📊 Variable Mortgages: Borrowing costs will adjust upward with bank prime rates. On a $500,000 balance, expect an adjustment of roughly $70 per month.
🔒 Fixed Mortgages: Existing terms stay locked. However, bond yield shifts will influence future qualification rates.
🗓️ Upcoming Renewals: If your term matures within the next 12 months, securing an early rate hold provides predictable protection against further volatility.
🔎 The Market: Serious buyers still have selection and negotiating leverage on their side, while homeowners with sound equity hold stable ground.
If you want an honest assessment of how today's rate change impacts your purchasing power, carrying costs, or neighbourhood property values, we are here to walk through the numbers with you.
Call Team McDadi to review your options.
