November 2026 | Geri Janes & Associates
After a year of holding steady, the Bank of Canada has increased its key interest rate by 0.25%, bringing it to 2.50%. This marks the first rate increase since 2023 and signals a shift in the direction of borrowing costs for Canadians.
If you're a homeowner with a variable-rate mortgage, preparing for a mortgage renewal, or thinking about purchasing a home, you may be wondering what this means for your finances.
At Geri Janes & Associates, we believe that understanding your mortgage options is the first step toward making confident financial decisions. Here's what you need to know about the latest announcement and how it could affect you.
Why Did the Bank of Canada Increase Rates?
The decision comes as inflation continues to put pressure on Canadian households.
Although inflation had shown signs of improvement, rising energy prices, increased business costs, and stronger-than-expected economic growth have raised concerns that inflation could remain elevated longer than anticipated.
The Bank of Canada is now forecasting inflation to remain around 3% through much of 2027, before gradually returning toward its 2% target in 2028.
While additional increases are possible, the Bank has indicated that future decisions will be made cautiously.
The takeaway? Borrowers should be prepared for the possibility of higher rates, but that doesn't necessarily mean everyone should rush to lock into a fixed-rate mortgage.
Your best strategy depends on your individual circumstances.
What Does This Mean for Your Mortgage?
1. If You Have a Variable-Rate Mortgage
Variable-rate mortgage holders are the most directly affected by changes to the Bank of Canada's policy rate.
However, not all variable-rate mortgages work the same way.
Adjustable-rate mortgages: Your payment typically increases when your lender raises its prime rate.
Fixed-payment variable-rate mortgages: Your regular payment may remain unchanged, but more of each payment goes toward interest and less toward reducing your principal.
For example, a 0.25% increase represents approximately $250 in additional annual interest for every $100,000 of outstanding mortgage balance, before accounting for principal repayments.
If you have a $500,000 mortgage, that's approximately $1,250 in additional interest annually.
Our advice: Before making any changes, review your current mortgage terms. In some cases, increasing your regular payment slightly can help maintain your original amortization schedule.
2. If Your Mortgage Is Coming Up for Renewal
If your mortgage is renewing in the next 6–12 months, now is an excellent time to start reviewing your options.
One of the biggest mistakes homeowners make is waiting until their lender sends a renewal offer and simply signing it.
Your lender's first offer isn't necessarily the most competitive option available.
At Geri Janes & Associates, we help our clients evaluate:
Fixed versus variable mortgage options
Competitive rates from multiple lenders
Opportunities to adjust amortization or payment frequency
Mortgage flexibility and prepayment privileges
Whether refinancing or consolidating debt makes financial sense
Our advice: Don't wait until your mortgage maturity date to explore your options. A proactive review gives you time to develop a strategy without feeling pressured into a last-minute decision.
3. If You're Planning to Buy a Home
Higher borrowing costs can affect mortgage affordability, particularly for buyers considering variable-rate financing.
However, the impact on your mortgage qualification will depend on the type of mortgage you choose, the available rates, and your overall financial picture.
For buyers in Barrie, Simcoe County, Georgetown, Halton Hills, and surrounding Ontario communities, understanding your purchasing power before beginning your home search is especially important.
A fully reviewed mortgage pre-approval can help you establish a realistic budget, identify potential lending challenges, and understand your financing options.
Our advice: If you're considering purchasing in the next few months, let's review your qualifications and explore a rate hold where available. This may help protect you against further increases while you search for the right home.
4. If You Have a Fixed-Rate Mortgage
Here's some good news!
If you're currently in a fixed-rate mortgage, this Bank of Canada announcement won't change your existing mortgage rate or regular principal-and-interest payment.
However, it could influence the mortgage market when your term comes up for renewal.
It's also important to remember that fixed mortgage rates are influenced primarily by bond market conditions rather than directly following the Bank of Canada's overnight rate.
That means fixed rates don't necessarily increase or decrease in step with every Bank of Canada announcement.
Our advice: If you're comfortable with your current mortgage, there may be no reason to make changes. However, keeping an eye on your upcoming renewal date and available options is always worthwhile.
Should You Lock Into a Fixed Rate?
This is one of the most common questions we hear whenever interest rates begin to rise.
And the answer isn't the same for everyone.
A fixed-rate mortgage provides payment certainty, which can be valuable for households working within a tight monthly budget.
A variable-rate mortgage may offer different benefits, including flexibility and potentially lower penalties if you need to break your mortgage early.
Before making a decision, consider your financial comfort level, future plans, mortgage balance, and the cost of switching.
The lowest rate isn't always the best mortgage. The right mortgage is one that supports your financial goals today while providing the flexibility you may need tomorrow.
Three Smart Moves to Make Right Now
1. Review your current mortgage.
Know your rate, remaining term, amortization, and payment structure. Understanding these details helps identify whether changes are necessary.
2. Take a closer look at your overall debt.
If you're carrying higher-interest credit card balances or unsecured loans, it may be worth exploring whether a mortgage refinance or home equity solution could improve your monthly cash flow. Any potential savings should be weighed against fees, repayment timelines, and the risks of securing debt against your home.
3. Have a mortgage strategy in place.
Whether you're renewing, refinancing, or purchasing, planning ahead puts you in a stronger position to respond to changing market conditions.
Let's Make Sure Your Mortgage Is Still Working for You
Interest rate announcements tend to generate a lot of headlines, but what matters most is how those changes affect your individual financial situation.
At Geri Janes & Associates, we take a proactive, personalized approach to mortgage planning.
We work with homeowners and buyers throughout Barrie, Simcoe County, Georgetown, Halton Hills, and surrounding Ontario communities to help them navigate changing mortgage rates with confidence.
Whether you're wondering if you should lock in your variable rate, preparing for an upcoming renewal, or considering a new home purchase, we're here to help you understand your options.
You don't need to navigate a changing mortgage market on your own.
Because a great mortgage strategy isn't just about today's rate. It's about making sure your mortgage continues to work for you, whatever the market brings next.
Mortgage rates, products, and qualification requirements are subject to change. All financing is subject to lender approval.