Market Insight Article

On Wednesday, October 28, the Bank of Canada raised its key interest rate by a quarter of a percentage point, from 2.25% to 2.50%. It's the first increase since July 2023, according to the Bank's governor. The next announcement is December 9.

I'm not a mortgage advisor, and I won't guess where rates go next. Here is what the Bank said, what it changed right away, and what I'd think about if you're buying, selling or already have a mortgage.

What the Bank said

Inflation is higher and more persistent than it expected, and it wants to stop high energy prices from spreading into the prices of other things. It also said housing is expected to remain relatively weak, and that it may need to raise the rate further, but will "proceed carefully."

What changed right away

Prime rate is the number banks use to price variable-rate loans. RBC, TD and BMO each moved prime from 4.45% to 4.70% on October 29, and a mortgage industry publication reports the other big banks did the same.

According to that publication, people with variable-rate mortgages or home equity lines of credit pay more as a result. If your payment is fixed, more of it goes to interest. If your payment adjusts, it goes up right away.

The Bank of Canada didn't say anything about fixed mortgage rates, so I won't either. If you're shopping for a fixed rate, ask your lender what they're offering today.

If you're buying

Ask your lender or mortgage broker to run your numbers at the current rate before you decide what to look at, not after you've found a home you love. Your budget is the payment you're comfortable with, not only the price.

If you're selling

Buyers are working with the same numbers. If a buyer's budget moves, they may look at homes differently. I'd rather talk through your plan and timing with you directly than tell you what the market will do.

If you have a variable-rate mortgage

Check with your lender how your payment is affected, and what your options are at renewal. That's a conversation for them, not for me.

Staying informed

I put together a short Market Insights update each month, once the Winnipeg Regional Real Estate Board releases its numbers, so you can see what is actually happening in our market.

Get Market Insights

Source: Bank of Canada press release, October 28, 2026. Prime rate figures: BMO. The effect on variable-rate borrowers is as reported by Canadian Mortgage Professional.

This is general information, not mortgage or financial advice.