A Bank of Canada rate decision: what to check on your mortgage

A Bank of Canada decision does not change every mortgage in the same way. Check whether your mortgage is fixed or variable, how its payment works and when your term ends. Compare the costs of any change before acting on a rate headline.

Check the mortgage you already have

Update, November 3, 2026: the Bank of Canada raised its policy rate to 2.50% on October 28, 2026. Its next scheduled decision is December 9, 2026. The steps below still apply to any decision.

A fixed rate generally stays the same during its term. A variable mortgage can be affected by changes in the lender prime rate, but whether the payment changes depends on the contract. Read the lender notice and ask how the change affects interest, payment and repayment time.

If renewal is approaching

Compare your current offer with suitable alternatives. Look at the payment, term, fees and flexibility. A rate hold and any option for a lower rate are lender-specific, so confirm the details in writing.

If you are buying

Use an affordable payment range rather than a prediction about the next decision. A pre-approval remains conditional, and the property and final application still need lender acceptance.

Before breaking your current mortgage

• Request the exact prepayment penalty and other exit costs.
• Compare total costs over the same period, not just the new payment.
• Check whether a lower payment comes from a longer amortization.
• Review income or household changes, including leave and retirement.

Sources and dates

These sources support the general rules discussed here. Lender requirements and individual eligibility still need to be confirmed.

• Bank of Canada, Bank of Canada raises the policy rate by 25 basis points to 2.50% (October 28, 2026) (as of 2026-10-28)
• Financial Consumer Agency of Canada, renewing your mortgage (accessed 2026-10-13)
• Financial Consumer Agency of Canada, mortgage interest rates (accessed 2026-10-13)