# BoC Rate Date - October 28, 2026 ![Oct 28](https://d2r7yk1mqahd04.cloudfront.net/images/Oct-28_2026-10-28-185850_ddkl.png) ### October 28, 2026 # It's no trick. Bank of Canada hikes its rate. - [DECISION · **HIKE** · 1st in 3 years](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) - [BOC RATE · **2.50%** · Up by 0.25%](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) - [BANK PRIME · **4.70%** · Up by 0.25%](https://www.truenorthmortgage.ca/blog/prime-rate-mortgages-explained) - [NEXT DATE · **DEC 9** · 2026](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) ## A contrary rate hike, with uncanny timing. Was it just too hard to resist? The first policy rate hike since July 2023 — **timed for Halloween**. We would have preferred a treat. Also uncanny: like Frankenstein, this rate hike is unusual and unsettling. A central bank typically raises its policy rate to rein in an overheating economy. Yet Canada's economy is undead-cool to the touch amid an ongoing U.S. trade war, higher fixed rates and fuel prices, and a [housing market](https://www.truenorthmortgage.ca/blog/housing-market-forecast) in need of a good cobweb-clearing. ## The real monster behind this rate move? Global inflation pressure. Oil and gas prices have been elevated since last February. Tariffs and extreme weather have also increased business input costs. Global government and corporate AI debt is ballooning. Short- and long-term bond yields have been higher for months. **Canada's headline inflation is over 3%**, **and U.S. inflation is almost 4%.** - Gas is up almost 28% from last year. - Groceries are, on average, 33% more expensive today than 5 years ago. - In a recent BoC survey, [40% of companies](https://www.canadianmortgagetrends.com/2026/10/boc-surveys-show-higher-inflation-expectations-passthrough/) plan to pass along price increases. In September, [average core inflation](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast) wasn't exactly going full Gremlin after midnight — sitting chill at 1.9%. But the 3-month annualized rate (a preferred Bank of Canada measure) has risen for 3 straight months. All the global signs point to a zombie inflation army closing in, and **a hike now is meant to prevent inflation from becoming entrenched** and support the Canadian dollar. Plus, despite tepid growth, the BoC sees **plenty of resilience** that has kept our country out of a recession, with the risk that inflation could continue running too warm if trade chaos or oil prices ease. - [VARIABLE RATES · **Lender discounts stable** · Rates will rise by 0.25%](https://www.truenorthmortgage.ca/rates) - [FIXED RATES · **Near cycle high** · Stable, could trend up or down](https://www.truenorthmortgage.ca/rates) ## What does this rate hike mean for your mortgage? For your variable-rate mortgage or [HELOC](https://www.truenorthmortgage.ca/mortgage-solutions/home-equity-line-of-credit), your rate will rise. If you have an [adjustable-rate](https://www.truenorthmortgage.ca/blog/adjustable-rate-mortgage-canada) mortgage, your payment will increase with the next full cycle. If you have a variable mortgage with a [static payment](https://www.truenorthmortgage.ca/blog/mortgage-trigger-rate) at a big bank, your amortization will start ticking up. Fixed rates aren't directly affected. [Renewals](https://www.truenorthmortgage.ca/mortgage-solutions/renewals-transfers) and [refinances](https://www.truenorthmortgage.ca/blog/refinance-for-funds) may face higher rates — ask your broker to [hold your rate](https://apply.truenorthmortgage.ca/apply-online/start) while you make decisions. --- ### Are more rate hikes creeping round the back stair? Our CEO, Dan Eisner, offers a flashlight. We examine economic factors and expert opinions, including our own, to help forecast the unknown and illuminate dark (rate) corners. **[RATE FORECAST BLOG](https://www.truenorthmortgage.ca/blog/mortgage-rate-forecast)** ### Back to tiptoeing through the listings — national housing market forecasts have been lowered. Buyers and sellers are expected to bide their time for a better 2027. But home prices might also be right where you want them. **[HOUSING FORECAST BLOG](https://www.truenorthmortgage.ca/blog/housing-market-forecast)** ### Can short-term rates help you save for just one term, or long term? Short-term fixed rates are often lower than popular 5-year rates, but also expose you to more renewals — see the discussion here. **[SHORT-TERM SWEET SPOT?](https://www.truenorthmortgage.ca/blog/short-term-mortgage-rates)** ### Crispy risk on the outside, gooey savings and flexibility on the inside? Still popular, cheaper variable rates will be less cheap, but that *may not be enough* to deter you from the benefits this rate type has to offer. **[VARIABLE, OR FIXED?](https://www.truenorthmortgage.ca/blog/should-you-choose-a-variable-or-fixed-rate)** --- **[EVERYDAY RATES ARE SLASHED (BUT UNHARMED)](https://www.truenorthmortgage.ca/rates)** **[TRY OUR COMPARE & SAVE CALCULATOR](https://www.truenorthmortgage.ca/tools/savings-calculator)** --- ## Renewing soon? [Calculate payments here](https://www.truenorthmortgage.ca/tools/renewal-calculator) ## Looking to refinance? [Apply now](https://apply.truenorthmortgage.ca/apply-online/start) --- ## More treats (mortgage-advice flavoured) - [Here's how mortgage fraud can haunt your home](https://www.truenorthmortgage.ca/blog/mortgage-fraud-consequences) - [Know which rate you're getting to save more](https://www.truenorthmortgage.ca/blog/posted-rates-vs-actual-rates) - [Which rate-type personality are you? Find out here](https://www.truenorthmortgage.ca/blog/variable-vs-fixed-mortgage-rates) - [Why don't fixed rates budge when prime rates go up?](https://www.truenorthmortgage.ca/blog/fixed-rates-dont-change-when-prime-does) - [Did you click on a rate comparison site? Things you should know](https://www.truenorthmortgage.ca/blog/mortgage-rate-comparison-sites) / /