MONEY GLOBE XThe Bank of Canada rate and your mortgage: what moves and what does not
How the Bank of Canada rate reaches variable mortgages and credit lines, why fixed rates track bond yields, with today's rate and next decision date.
Last checked November 8, 2026. Every rule below names its source; the official pages are listed at the end with their own dates.
In short
- The Bank of Canada sets its policy interest rate on eight scheduled dates a year.
- Banks' prime rates usually move with it, and variable-rate mortgages and lines of credit follow prime.
- Fixed-rate mortgages are priced from lenders' funding costs, which move with government bond yields.
Bank of Canada and Fed ratesBond yieldsMortgage Renewal Check
Today's rates
Live figure: the Bank of Canada policy rate
2.50% (as of November 6, 2026). The next scheduled announcement is December 9, 2026.
Source: Bank of Canada; dates from the central bank calendar. More on our interest rates page.
Live figure: the 5-year conventional mortgage rate
6.19%, dated November 4, 2026. Example: on a $400,000 balance with 20 years left, that rate means a payment of about $2,891.55 a month (interest compounded twice a year, as usual for Canadian fixed-rate mortgages).
Source: Bank of Canada, posted interest rates offered by chartered banks (5-year conventional mortgage rate, dated November 4, 2026). A posted rate; the rate a lender offers you can be different.
Variable-rate mortgages
A variable rate is usually set as prime plus or minus a margin. When prime changes, either the payment changes, or, with a fixed-payment variable mortgage, the share of each payment going to interest changes. If rates rise far enough, a fixed payment can stop covering the interest (often called the trigger rate), and the mortgage contract says what happens next.
Fixed-rate mortgages
Lenders price fixed rates from their own funding costs, which move with Government of Canada bond yields of a similar term, such as the 5-year. Our bond yields page shows the 2-, 5- and 10-year yields.
At renewal
Whatever the rate, the payment at renewal depends on the balance, the years left and the new rate. The Mortgage Renewal Check shows it.
Questions
How often does the Bank of Canada announce its rate?
On eight scheduled dates a year; the next one is on our interest rates page.
Does a Bank of Canada cut lower my fixed mortgage rate?
Not directly: fixed rates move with lenders' funding costs and bond yields; variable rates follow prime.
What is the prime rate?
The rate each bank sets as the base for variable loans; it usually moves with the Bank of Canada's policy rate.
What is a trigger rate?
On a fixed-payment variable mortgage, the rate at which the payment no longer covers the interest.
Related guides
Sources
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Create a free accountLast checked November 8, 2026. General information only - not financial, legal, tax or real estate advice. Rules change: confirm with the official source or a licensed professional before you act.