Rate Update for October 2026: Bank of Canada Raised Policy Interest Rate to 2.50%

Bank of Canada October 28 Rate Update: Should You Put Your Homebuying Plans on Hold?

On October 28, 2026, the Bank of Canada increased its policy interest rate by 0.25%, bringing it to 2.50%. The decision comes amid ongoing inflationary pressures, including elevated energy costs and their potential impact on consumer prices.

While higher interest rates can affect borrowing costs, this doesn’t mean you should put your homebuying plans on hold.

Understanding your mortgage options and working with an experienced mortgage broker can help you make informed decisions, even in a changing rate environment.

Could Interest Rates Increase Further?

According to the Bank of Canada's latest announcement, further interest rate increases may happen if inflationary pressures persist.

The Bank projects inflation to reach approximately 3.5% by the end of 2026 and remain elevated throughout much of 2027, before gradually returning to its 2% target by mid-2028.

While future rate decisions are not guaranteed, the possibility of additional increases means borrowers should not automatically assume lower mortgage rates are just around the corner.

What Does This Rate Increase Mean for Your Mortgage?

The impact depends on the type of mortgage you have:

• Variable-rate mortgages: Borrowers may see an increase in their payments or a greater portion of their payments going toward interest, depending on their mortgage structure.
• Fixed-rate mortgages: Existing fixed-rate borrowers generally won't see changes to their contracted rate until their mortgage term ends.
• Mortgage renewals: Homeowners approaching renewal may face different rates than their current mortgage and should consider comparing options across multiple lenders.

It's important to remember that the Bank of Canada's policy rate directly influences variable mortgage rates, while fixed rates are more closely tied to Government of Canada bond yields and market expectations.

Should You Wait for Interest Rates to Drop Before Buying?

Waiting for lower rates doesn't necessarily guarantee a better buying opportunity.

Housing prices, inventory, competition, and mortgage rates can all change over time. Even if rates decrease in the future, property prices may not remain the same.

Rather than trying to predict the perfect time to buy, focus on your financial readiness.

At Brevity Capital, we’ll figure out your best options by reviewing your income, savings, existing debts, down payment, and ability to comfortably manage monthly homeownership expenses.

A mortgage pre-approval can help you establish a realistic budget and understand your potential purchasing power before beginning your home search. Final approval remains subject to lender requirements.

The right time to buy isn't necessarily when interest rates are at their lowest. It's when you're financially prepared and the purchase makes sense for your circumstances.

How Can a Mortgage Broker Help?

Finding the right mortgage involves more than comparing advertised interest rates.

At Brevity Capital, we work with over 50 lenders, including major banks and alternative lenders, providing access to a wide range of financing solutions. We shop around for you to find the best rates available in the market for your specific situation.

Our team can help you:

• Compare mortgage rates, products, and terms across multiple lenders.
• Understand whether a fixed or variable mortgage suits your financial goals.
• Review your income, credit history, and debts to determine your potential purchasing power.
• Explore alternative financing solutions if you don't meet traditional lending requirements.
• Plan for upcoming renewals or refinancing opportunities.

Whether you're a first-time buyer, self-employed, or an existing homeowner, understanding your available options is important - and that's where we can help.

Don't Let Interest Rates Be the Only Factor in Your Decision

Interest rates may continue to fluctuate, but your homeownership goals don't necessarily have to wait.

If you're financially ready to purchase a home, exploring your mortgage options today may be more beneficial than postponing your plans based solely on predictions about future rates.

And if you're not quite ready, we can help you identify the steps needed to prepare for your future purchase.

Explore Your Mortgage Options with Brevity Capital

Whether you're buying, renewing, or refinancing, our team is here to help you navigate today's mortgage market and find financing solutions suited to your needs.

Don't put your homeownership goals on hold without knowing your options.

Contact Brevity Capital today for a free consultation.

📞 (905) 814-4455
📧 [email protected]

*O.A.C. Terms & Conditions Apply. All mortgage approvals are subject to lender guidelines and qualification requirements.