Blog > What Today's Bank of Canada Rate Hike Means for Markham Buyers and Sellers
What Today's Bank of Canada Rate Hike Means for Markham Buyers and Sellers
by
A Quarter-Point Hike. A Calm Plan.
Rate headlines can feel big. For most Markham homeowners and buyers, the right response is not panic. It is three simple checks and a clear look at your own numbers.
By Michael John Lau, REALTOR® · Markham
Quick answer: Yes. On October 28, 2026, the Bank of Canada raised its policy interest rate by 25 basis points, from 2.25% to 2.50%. The Bank Rate is now 2.75% and the deposit rate is 2.45%. Canada's big banks typically adjust their prime rates shortly after a move like this, so variable-rate mortgages and home equity lines of credit usually feel it first. A fixed-rate mortgage you already have does not change until renewal.
What the Bank of Canada Did, in Plain Words
The Bank of Canada sets a key interest rate called the overnight rate. It is the rate banks use when they lend to each other for one day. When it goes up, borrowing tends to cost more across the economy.
Today the Bank raised that rate by a quarter of a percentage point. It had held the rate at 2.25% for seven decisions in a row, so this is the first change in about a year. Canada's inflation rate rose to 3.1% in September, mostly because of higher energy prices. A rate hike is the Bank's tool to keep those higher costs from spreading to everything else.
What about prime? The Bank of Canada does not set prime. Canada's big banks set their own prime rates, and they typically adjust them shortly after a Bank of Canada move. Watch for your lender's announcement to confirm your new rate.
What to Look At This Week
You do not need to make a big decision today. You do need to know where you stand. These three checks take a few minutes each.
Your mortgage renewal date
Find your maturity date on your latest mortgage statement. If it falls in the next few months, start comparing now rather than signing the first renewal letter that arrives. Many lenders let you secure a renewal rate ahead of time, which gives you a ceiling while you keep looking.
Any variable-rate or HELOC debt
Variable mortgages and home equity lines of credit (HELOCs) are usually priced from prime. If your payment adjusts, expect it to rise. If your payment is fixed, more of it will now go to interest. On a HELOC, the minimum interest payment usually goes up. Your next statement will show the change.
Your pre-approval rate hold
If you are shopping for a home, find the expiry date on your pre-approval. Rate holds often last 90 to 120 days and may protect you from today's change while they are active. Ask your lender exactly what your hold covers. If it has expired, refresh it before you write an offer.
This is general information, not financial advice. Every mortgage is different. Before you change anything, speak with a licensed mortgage professional who can look at your full picture.
Your Plan Still Works. Your Numbers Need a Refresh.
A quarter-point change does not make a good home a bad decision. It does change the math, so the smart move is to update your numbers before you fall in love with a listing.
- ◆Ask your lender to confirm your budget at today's rates. A small rate change can shift your maximum price, and it is better to know before you book showings.
- ◆For a sense of scale: on an $800,000 variable mortgage, a 0.25% increase adds roughly $2,000 a year in interest, or about $167 a month. This is an illustration only. Your lender will give you your real figures.
- ◆Keep your financing condition in mind when you write an offer, unless a mortgage professional has confirmed your approval in writing for that specific home.
- ◆Look past the city name. A Markham home in Cornell and one in Unionville can sit at very different price points, so your updated budget may open more than one community.
Michael John Lau helps buyers compare homes, neighbourhoods and offer terms with a clear head. Learn more about his buyer services, or explore all 44 Markham neighbourhoods.
Your Home Did Not Change. Your Buyers' Budgets Did.
Today's news affects how much some buyers can borrow. It does not change what makes your home special. A good plan accounts for both.
- ◆Price from recent sales in your own Markham community, not from headlines. Street-level data beats city averages.
- ◆Look closely at buyer strength when offers arrive: the deposit, the financing condition, and how recent the buyer's pre-approval is.
- ◆If you are selling and buying at the same time, check your own rate hold and talk to your lender about timing before you list.
- ◆Presentation matters more when buyers are careful. A well-prepared home helps buyers feel confident about every dollar they spend.
For current conditions, see the Markham market update for sellers, read is now a good time to sell in Markham, or start with a free home evaluation based on recent sales near you.
“A rate change is news. Your plan is what decides the outcome.”
The Markham families who do well through rate changes are not the ones who guess right. They are the ones who check their numbers early, ask good questions, and make decisions on their own timeline.
Today's Rate Hike: Your Questions
Did the Bank of Canada raise rates today?
Yes. On October 28, 2026, the Bank of Canada raised its target for the overnight rate by 25 basis points, from 2.25% to 2.50%. The Bank Rate is now 2.75% and the deposit rate is 2.45%. It is the Bank's first rate change in about a year. Canada's big banks typically adjust their prime rates shortly after.
How does a hike affect my variable mortgage in Ontario?
Most variable mortgages in Ontario are priced from your lender's prime rate, which usually moves after a Bank of Canada change. With an adjustable-rate mortgage, your payment goes up. With a variable mortgage that has fixed payments, your payment stays the same, but more of it goes to interest. Your lender will confirm the details, and a licensed mortgage professional can review your options.
Should I lock in a fixed rate?
It depends on your situation, not on one announcement. Fixed rates tend to follow bond markets more than the Bank of Canada's rate, so locking in today is not always the lower-cost choice. Weigh your comfort with payment changes, how long you plan to stay, and any cost to switch. A licensed mortgage professional can compare the numbers with you. This is not financial advice.
I'm renewing soon. What does it mean for me?
Start early. Find your maturity date, then compare offers from your current lender and others before you sign. Many lenders let you secure a renewal rate a few months ahead, which can give you a ceiling while you keep comparing. If your current rate is lower than today's offers, plan for a higher payment. A licensed mortgage professional can walk you through your choices.
Will Markham home prices drop if rates rise?
No one can say for sure, and Michael John Lau does not make price predictions. Higher rates can reduce what some buyers are able to borrow. Other factors matter too, like how many homes are for sale, local demand, and the specific neighbourhood. In Markham, results can differ from one community to the next, so recent sales in your area tell you more than headlines.
Talk It Through Before You Decide
If today's news has you wondering about your next move, Michael John Lau is happy to walk you through what is happening in your part of Markham. No pressure, just a clear picture.
416-700-0286Rate figures are from the Bank of Canada’s announcement on October 28, 2026. Michael John Lau is a licensed REALTOR® with eXp Realty, Luxury Division, helping buyers and sellers in Markham, Ontario. This article is general information only and is not financial or mortgage advice. Prime rates are set by each lender. Speak with a licensed mortgage professional about your situation.