The Bank of Canada's next interest rate announcement is Wednesday, October 28, 2026 at 9:45 a.m. Eastern, which is 7:45 a.m. in Alberta. It comes with a new Monetary Policy Report, and the Governor's press conference follows at about 10:30 a.m. Eastern (about 8:30 a.m. Alberta time). Alberta is still on daylight time that week; clocks change on November 1.
Nobody outside the Bank knows the decision ahead of time, and this article won't guess. What you can know in advance is how a decision would, or wouldn't, reach your mortgage.
Where the policy rate stands
The Bank's target for the overnight rate (its "policy rate") is 2.25%, as set on September 2, 2026. It has been at 2.25% since the cut announced on October 29, 2025, and the Bank held it there at each decision since then: December 2025, then January, March, April, June, July and September 2026.
In its September 2 statement, the Bank said upside risks to inflation had increased while new tariffs made growth more uncertain, and that it is "prepared to adjust monetary policy as needed." It also noted that long-term bond yields had moved up globally, including in Canada. That second point matters for fixed rates, as you'll see below. A change, if there is one, takes effect the day after the announcement.
If you have a variable-rate mortgage
The Bank of Canada doesn't set mortgage rates. But changes in its policy rate lead to similar changes in short-term rates, including lenders' prime rates, and prime is what variable-rate mortgages are priced from. So if the Bank moves, your lender's prime usually follows, and your rate moves with it. What happens next depends on your payment type:
- Adjustable payments: your payment changes when your rate changes. You'll know in advance how much principal you'll have paid by the end of the term.
- Fixed payments: your payment stays the same, but the split between interest and principal shifts. If rates rise, more of each payment goes to interest. If they rise to your trigger point (it's in your mortgage contract), your lender may increase your payment. If rates fall, more goes to principal.
If you're not sure which type you have, your annual statement or your lender's online banking will show it.
If you have a fixed-rate mortgage
A fixed rate stays the same for your entire term. Whatever happens on October 28, your rate and payment don't change until renewal (or until you break the mortgage).
New fixed rates are a different story. They depend mostly on lenders' funding costs, which are driven by longer-term interest rates in financial markets, such as Government of Canada bond yields. The Bank of Canada notes that a policy-rate change can also move long-term rates, especially if people expect it to last, but fixed rates don't simply mirror one announcement. That's why fixed rates can rise in a month when the policy rate is on hold.
Renewing or buying soon? A plan beats a prediction
- Renewal in the next few months: many lenders will hold a rate for a period before maturity, often up to about 120 days. Starting early lets you compare offers before and after the announcement instead of reacting to headlines. See mortgage renewal in Alberta and the renewal checklist.
- Buying: a mortgage pre-approval tells you what you may qualify for, including the stress test, and many pre-approvals come with a rate hold for a set period. Rate holds vary by lender and are subject to final approval.
- Variable with fixed payments: check your trigger point and your amortization on your latest statement, so you know where you stand whichever way rates go.
- Thinking of locking in: some variable mortgages let you convert to a fixed rate. There may be a fee and conditions, and the new fixed rate may be higher than the variable rate you're paying now.
The next scheduled announcement after this one is December 9, 2026.
John Antle, Mortgage Associate | Team Lead, Pineapple National Inc.
General information only, not personalized financial or mortgage advice. Please speak with a licensed mortgage professional about your situation. Policy rate from the Bank of Canada as of its September 2, 2026 decision. This is not a prediction of the October 28 decision. Rate holds, conversion options and fees vary by lender. Qualification (O.A.C.) applies.
