Interest Rate Update | October 28, 2026 | York Region

The Bank is responding to the risk of broader inflation

The Bank cited persistent energy costs and the risk that businesses pass more of those costs to customers. It also described a somewhat stronger growth outlook. Its opening statement explains why it chose an increase even though measures of underlying inflation remained near 2%.

That is a risk assessment about where inflation could go. It does not mean that every household expense has already risen by the same amount, or that another rate increase is certain.

For context on the data available before this decision, read our September inflation preview for York Region buyers.

The report provides forecasts, not promises

The October Monetary Policy Report includes the following Canadian projections. These are annual figures from Table 2, not monthly readings or York Region home price forecasts.

Read the period as carefully as the percentage. An annual average forecast can differ from the inflation rate in a particular month or at year end. These figures should not be used as a prediction for the price of a home.

The Bank said further increases could be needed, while emphasizing careful decisions at each meeting. Its next scheduled decision is December 9, 2026. That date is a review point, not a commitment to another change.

Your mortgage contract determines the payment impact

A basis point is one hundredth of a percentage point. This increase is 0.25 percentage points. It is not a 25% increase in your mortgage rate or payment.

Your lender sets its prime rate and the terms of your mortgage. A policy announcement alone does not confirm a particular lender's change or its effective date.

Variable mortgage with adjustable payments

When the contractual interest rate changes, the payment changes according to the product terms. Request the revised payment and effective date from your lender.

Variable mortgage with fixed payments

The regular payment may initially stay the same while more goes toward interest and less toward principal. Ask about remaining amortization, trigger provisions and whether an adjustment is required.

Existing fixed mortgage

The agreed interest rate stays fixed during its term. The October 28, 2026 announcement does not rewrite that contract. Renewal, refinancing or a new purchase involves a separate offer and review.

Renewal or new fixed mortgage offer

New fixed pricing is influenced by bond markets and lender decisions. Compare the actual offer, remaining amortization, flexibility and possible switching costs. Do not assume a new fixed quote moves by exactly 0.25 percentage points.

A payment illustration makes the assumptions visible

The comparison below uses two hypothetical fixed mortgage offers, 4.00% and 4.25%. They are examples, not current advertised rates or an estimate of what your lender will offer.

Assumptions: 25 years remaining, 300 monthly payments, nominal annual interest compounded twice per year, the same principal and amortization in each comparison, and no extra payments. Figures are rounded to cents. Payments cover principal and interest only. Property tax, insurance, condominium fees, utilities and other charges are excluded. A lender may use different terms or compounding for a particular product.

The examples isolate a difference between mortgage offers. They do not assume that the Bank's increase is passed through to every borrower. Ask a qualified mortgage professional for a calculation using your balance, contract and actual offer.

Buyers can turn the announcement into a practical plan

Start by asking your mortgage professional whether your preapproval, rate hold or qualification assumptions need updating. Confirm the amount, payment estimate, expiry date and conditions in writing. Preapproval remains subject to the lender's final review.

Next, set a household spending limit that includes ownership costs beyond the mortgage. Leave room for moving, closing expenses and the work a particular property may need. The maximum a lender considers is not automatically the monthly commitment that fits your family.

Then compare specific homes using recent relevant sales, condition, layout and ownership costs. If you are comparing a condo, townhouse and detached property, include their different recurring expenses. Browse York Region homes for sale.

Our Aurora buyer guide provides another starting point for organizing your search: Aurora buyer guide

Pricing your home still requires local evidence

A national rate decision does not establish a sale price for your home. My approach is to review relevant completed sales, competing listings, condition, presentation and your timing. During a listing, showing feedback and actual buyer activity can help inform the next discussion.

If you are selling and buying, look at both transactions together. Review a realistic sale range, the existing mortgage payout, the next purchase and the timing between them. Ask your mortgage professional about any implications of ending or moving the existing mortgage.

You can start that property discussion with a home evaluation: Request a home evaluation

Useful questions to take to your mortgage professional

• Is the rate on my particular product changing, and from what date?
• Will my payment change, or will the split between interest and principal change?
• Does my preapproval or rate hold still apply to the purchase I am considering?
• What happens to my remaining amortization, and do any trigger provisions apply?
• What costs and conditions would apply if I renew, refinance, switch lenders or sell before the term ends?

Bring the answers back to the homes and timeline you are considering. We can work through the real estate comparisons and coordinate the next steps with the appropriate professionals.

Questions about the announcement

Official resources

General information based on the Bank's October 28 written releases and the resources above. Confirm financing terms and calculations with a qualified mortgage professional. Property decisions require research suited to the home and your circumstances.