Oct 11, 2026
If your mortgage term ends this winter, the rate you saw advertised in August may already be gone.
All six of Canada’s major banks have nudged fixed mortgage rates higher over the past month or so. Depending on the term, some rates have climbed by up to half a percentage point. The increases kept coming this week, even though the Bank of Canada hasn’t moved its policy rate in almost a year.
Advertisement
That disconnect catches a lot of homeowners completely off guard. If your mortgage is up for renewal in the next few months, the next rate hike might actually be the least of your worries. It’s waiting for the renewal letter and signing whatever it offers.
Thanks for subscribing!
The best of Money.ca delivered weekly.
By signing up, you accept Money.ca Terms of Use, Subscription Agreement, and Privacy Policy.
Why are fixed rates rising when the Bank of Canada hasn’t hiked?
Fixed mortgage rates follow bond yields, not what the central bank does with its overnight rate. Lenders keep a laser focus on the 5-year Government of Canada bond yield when setting fixed rates. It sat around 3.62% shortly after noon on Oct. 7, according to Canadian Mortgage Trends (CMT), a mortgage industry news site. Rising oil prices and renewed inflation fears sparked another wave of bond sell-offs across global markets.
The Bank of Canada (BoC) held its policy rate at 2.25% on Sept. 2. But it also pointed out that long-term bond yields have been climbing everywhere, including Canada, and that the threat of higher inflation is creeping back up. We’ll see what happens next when they make their next rate decision on October 28.
Must Read
- A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change
- Here are 5 'must-haves' that Canadians constantly overpay for. How many of these are sabotaging your budget every single month?
- Here are the 5 biggest differences between rich and poor Canadians — which side do you fall on?
Join 20,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Which big banks have raised rates — and by how much?
On Oct. 7, BMO raised its special 3-year fixed rate by 20 basis points (0.20 percentage points) to 4.94%, CMT reports. Its standard 5-year fixed rate rose by that same amount to 5.14%, and its insured 5-year high-ratio rate moved up 15 basis points to 4.99%. Scotiabank also pushed its 2-year fixed rate up to 5.14%.
Earlier in the week, RBC raised fixed rates by 10 to 20 basis points across its 1- to 5-year terms. It also trimmed its discount on new 5-year variable mortgages.
TD and RBC have been setting the pace since early September, bumping up several terms by as much as 40 to 50 basis points. CIBC isn’t far behind, raising most of its terms by about 20 basis points. BMO, National Bank and Scotiabank have mostly moved 10 to 30 basis points.
Keep in mind that these figures only cover the banks’ own advertised rates. Mortgage brokers work separately, so their rates might look a bit different.
What could a half-point jump cost at renewal?
In this hypothetical example, a homeowner has $400,000 left on their mortgage and 22 years remaining on their amortization. At 4.64%, monthly payments would be about $2,411. At 5.14%, they’d rise to roughly $2,521. That’s about $110 more a month, or roughly $6,600 more over a 5-year term.
Advertisement
Not everyone will get hit with the full increase, since the size and timing of these hikes depend on the bank and the mortgage term you choose. But the numbers prove just how much difference a few weeks can make.
Do you have to renew with your current lender?
No, and switching may be easier than you think. The FCAC is Canada’s federal regulator focused on protecting consumers and keeping financial institutions in line. Its renewal guidance says you’re free to take your mortgage elsewhere if another lender offers a better fit. Federally regulated lenders have to send you a renewal notice at least 21 days before your term is up. If you don’t take action, your mortgage might automatically renew — whether you like the rate or not.
Uninsured borrowers also face one less hurdle. In late 2024, the Office of the Superintendent of Financial Institutions (OSFI), Canada’s federal banking regulator, dropped the stress test for straight switches. A straight switch just means moving your mortgage to a new lender without changing your loan amount or your payoff schedule.
That said, the FCAC points out that a new lender still has to approve your file — and they might look at things differently than your current bank. Any hits to your income or credit score since you first got the loan could limit your choices.
What to do now
- Find your maturity date and start talking to lenders now if it’s within the next four months
- Check with your existing lender and at least one competitor to see if they’ll lock in a rate while you consider your options, and clarify how long that rate hold stands
- Get a quote from a mortgage broker to compare against bank-advertised rates
- Give your renewal notice a close read so you don’t accidentally get rolled over into a rate you didn’t pick
- Compare term lengths, not just rates — RBC’s smaller variable discounts show pricing is shifting across products
Christopher Liew, a CFP and CFA charterholder, argues the 21-day notice requirement shouldn’t set your timeline. As he puts it in a column on mortgage renewal traps, “it’s the legal minimum, not a helpful timeline.”
You May Also Like
- This 7-step plan from Dave Ramsey is designed to help you ditch debt, save more and build wealth — here’s how it works
- Prioritize these 4 critical investments and watch your net worth skyrocket
- Here are 8 solid money moves that could free up real cash every month — here's where to start
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
The most expensive financial mistakes are often the ones you don't see coming. Join 19,000+ Canadians who get the money moves, risks and opportunities shaping their finances — delivered free each week. Subscribe now.
Amy Tokic is an SEO content editor for Money.ca. She holds a B.A. in Communications from the University of Windsor. Amy is an award-winning author and has been writing professionally for 15 years, publishing articles in the lifestyle and health sectors.
