Bank of Canada October 28: What to Do With Your Mortgage

Quick take

• The Bank of Canada announces its rate decision and a new Monetary Policy Report on Wednesday, October 28, 2026 at 9:45 a.m. ET.
• Any change takes effect the day after the announcement, and only some mortgages feel it right away.
• Variable mortgages are priced off lenders' prime rates, which follow the policy rate. Fixed rates depend more on what lenders pay to borrow.
• The useful move on Thursday is a short check of your own file, not a reaction to the headline.
• The next scheduled decision is December 9, 2026.

"The Bank of Canada announces on October 28. What should I actually do with my mortgage the day after?"

Start by finding out which kind of mortgage you have and when your term ends. With a variable rate, the decision can change your payment or how much of it goes to principal. With a fixed rate, nothing changes until renewal, so the day after is about planning, not reacting.

This post was written the day before the announcement and does not guess the outcome. The Bank has held its policy rate at each of its last seven decisions, from December 2025 through September 2026, but past holds tell you nothing certain about tomorrow. Here is a plan that works whether the Bank cuts, holds or raises.

What happens on October 28, and when does it take effect?

The Bank of Canada sets its policy rate on eight fixed dates a year. October 28 is one of the four dates that also comes with a Monetary Policy Report, the Bank's outlook for inflation and growth. The decision is released at 9:45 a.m. ET, and the Bank lists a press conference with the Governor at about 10:30 a.m. ET.

The Bank notes that, since 2021, a change takes effect the day after it is announced. So any change would start on Thursday, October 29. The next scheduled decision is December 9, and a summary of the Governing Council's deliberations on this decision is scheduled for November 10.

I have a variable rate. What changes for me?

The Bank explains that changes in its policy rate lead to similar changes in short-term rates, including the prime rate banks use to price variable-rate mortgages. Lenders set their own prime rates and tell borrowers when theirs changes, so watch for a notice from yours.

• Adjustable payment: your payment moves up or down when your lender's prime moves. Check the new amount and the date it starts.
• Fixed payment with a variable rate: your payment stays the same, but the split between interest and principal shifts. The Financial Consumer Agency of Canada warns that when rates rise, a fixed payment can reach the point where none of it goes to principal and the balance grows.
• If the Bank holds, nothing changes, which makes it a good week to confirm your payment still covers more than interest.

I have a fixed rate. Does any of this matter?

Not to your current payment. A fixed rate stays the same for the whole term. The Bank of Canada itself says it does not set mortgage rates. Fixed rates depend mostly on what lenders pay to borrow money, which responds to the economy in Canada and abroad, so they can move before, after or without a Bank decision.

Where it matters is at renewal. If your term ends in the next several months, the day after is a good day to ask for your renewal options in writing.

My renewal is coming up. What should I do on Thursday?

The Financial Consumer Agency of Canada says federally regulated lenders must send your renewal statement at least 21 days before your term ends, and it suggests shopping a few months ahead rather than waiting for that letter. If you do nothing, renewal can be automatic, and that may not be the best rate or terms available to you.

• Write down your balance, renewal date and current payment.
• Ask your lender what it is offering and how long the offer is good for.
• Get at least one outside comparison so you have something real to negotiate with.
• Ask about switching costs such as discharge, appraisal and legal fees before you compare offers.

I am buying, or I am pre-approved. Should I change anything?

A pre-approval is not a promise. FSRA, Ontario's mortgage regulator, points out that a lender may decide not to offer the mortgage once it has looked closely at you and the property. If you have a rate hold, find out when it expires and what happens if rates move before you firm up a deal.

Do not stretch your price because of one announcement. Rerun your numbers using a payment you are comfortable with, not the largest amount a lender will approve, and then decide on price.

Should I break my fixed mortgage if rates move?

Only after you know the penalty. The Financial Consumer Agency of Canada notes that breaking a closed mortgage normally costs a prepayment penalty that can run into thousands of dollars, plus possible discharge, appraisal and administration fees, and any cash back may have to be repaid. Some lenders offer a blend-and-extend, which mixes your current rate with a new one and avoids the penalty, though fees can apply.

Ask your lender for the exact penalty in writing, then compare it with what you would actually save over the rest of your term. A headline on its own is never enough reason.

What to do this week

• Find your mortgage type, payment type and term end date on your last statement.
• If you are variable, watch for your lender's prime notice and confirm your new payment or how your principal is affected.
• If you renew within the next several months, request your renewal offer in writing and get one outside comparison.
• If you are buying, check your rate hold expiry and rerun your budget on a payment you are comfortable with.
• Mark December 9, the next scheduled decision, so the next one is not a surprise.

If you want a plain read on your options, start with the numbers and decide from there. No pressure.

Related resources

Rates and market outlook

Sources

• Bank of Canada: Policy interest rate and 2026 schedule
• Bank of Canada: Upcoming events
• Bank of Canada: Understanding the policy interest rate
• Bank of Canada: What's behind your mortgage rate
• Financial Consumer Agency of Canada: Choosing a mortgage that is right for you
• Financial Consumer Agency of Canada: Renewing your mortgage
• Financial Consumer Agency of Canada: Breaking your mortgage contract
• FSRA: Signing a mortgage contract

Disclaimer: This article is general information for Ontario borrowers. It is not financial advice or a rate quote. Mortgage options depend on your file, property, timing, lender criteria, and market conditions at the time of application.