Rates right now
Last updated: October 28, 2026. This box is the only part of the page that goes stale — the rest of the page explains the mechanism, which does not change.
Canada
2.50%
Bank of Canada policy rate, raised 0.25 points on October 28, 2026 — the first hike since July 2023. Bank Rate: 2.75%. Prime rate: now 4.70% (was 4.45%) — variable mortgages move with it.
The Bank said the hike is meant to get ahead of energy-led inflation (CPI around 3%, expected near 3.5% by year-end), and that further increases may be needed, but it will proceed carefully.
United States
3.75% – 4.00%
Federal Reserve funds rate, held steady on October 28, 2026, in a 10–2 vote — two members wanted another hike. US inflation was 3.7% in September, well above the Fed's 2% target, and markets expect a possible further hike in December.
Average 30-year fixed mortgage: about 7.23% – 7.33%.
How rates actually move house prices
It is a chain, and every link is simple. When rates go up, the monthly payment on the same house goes up. When the payment goes up, fewer buyers qualify at that price. Fewer buyers means fewer showings, longer days on market, and softer prices. When rates come down, the chain runs in reverse: payments fall, more buyers qualify, competition returns.
That is why a rate announcement can matter more than a price cut. A seller who drops the price $20,000 but faces buyers paying 1% more in interest has not actually made the house cheaper per month.
The payment ladder — same house, different rates
A $899,000 house with 20% down means a $719,200 mortgage. On a 25-year amortization, here is what the rate does to the monthly payment:
| Rate | Monthly payment | vs. 3.50% |
|---|---|---|
| 3.50% | $3,591 / month | — |
| 4.50% | $3,981 / month | + $390 |
| 5.50% | $4,390 / month | + $799 |
| 6.50% | $4,817 / month | + $1,226 |
Roughly $400 a month per percentage point. Payments calculated with Canadian semi-annual compounding, 25-year amortization, before property tax, insurance, and condo fees. Your actual payment depends on your down payment, amortization, and lender terms — talk to a mortgage broker for your own numbers.
Canada vs. the US — why they are different
- Term length: most Canadians borrow on a 5-year term and renew into whatever rates exist then. Most Americans lock a 30-year fixed rate and keep it for decades — so US homeowners feel rate moves far less, until they move.
- What sets fixed rates: Canadian fixed rates follow the 5-year Canada bond; US mortgage rates follow the 10-year US Treasury bond. Central bank policy rates matter, but bond markets move first.
- The stress test: Canadian buyers must qualify at a higher rate than the one they will actually pay, which cuts buying power further when rates rise.
- The dollar link: the Bank of Canada cannot ignore the Fed. If US rates stay much higher, it pressures the Canadian dollar — one reason Canadian rates do not fall as fast as people hope, even when the local economy softens.
York Region, in dollars
Using the townhouse median (about $865,000) and detached average (about $1.33 million) for Stouffville, at 4.50% with 20% down on a 25-year amortization:
Townhouse median
$865,000
About $3,830 / month
Detached average
$1,330,000
About $5,889 / month
Mortgage payment only, before tax, insurance, and fees.
What it means for buyers
- Get a rate hold and a pre-approval before shopping — it locks your payment while you look.
- Understand fixed vs. variable in plain terms: fixed is payment certainty, variable moves with the prime rate.
- First-time buyers: ask about the FHSA, the Home Buyers' Plan, and 30-year amortization eligibility — they change what you can afford.
- Do not wait for a perfect rate. Buy the payment you can carry, on a house priced to the market.
What it means for sellers
- High rates mean fewer showings and longer days on market — pricing to the market matters more than ever.
- A house priced for yesterday's rate environment sits; a house priced for today's payment sells.
- Presentation still matters, but it cannot overcome a monthly payment buyers cannot qualify for.
- Ask for a pricing plan built on current sold prices, not on what the house would have fetched at lower rates.
Frequently asked questions
Should I wait for rates to drop?
Waiting only helps if rates actually fall, and by enough to offset any price rise that cheaper borrowing brings. If you find the right house at a payment you can carry, waiting is a gamble, not a plan.
Fixed or variable?
Fixed buys certainty — your payment does not move for the term. Variable usually starts lower and moves with prime. The right answer depends on your risk tolerance and how long you plan to stay, not on a rate forecast.
Does the US Fed affect my Canadian mortgage?
Yes, through bond yields and the dollar. US Treasury yields pull Canadian bond yields with them, and Canadian fixed mortgage rates follow Canadian bonds — so a Fed move can reach your renewal even though the Fed sets no Canadian rate.
General information only, not financial advice. Rates change frequently — the snapshot box above is dated, and your own rate depends on your credit, down payment, amortization, and lender. Talk to a licensed mortgage broker for numbers specific to you.
What is your payment at today's rates?
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