Active Mortgage · Guide
Bank of Canada rate announcements: how they work
Several times a year the Bank of Canada announces whether it is changing its policy interest rate. These announcements get a lot of attention because they can move what Canadians pay on variable-rate mortgages and lines of credit. Here's what happens on announcement day and what it means for your mortgage.
What the policy rate is
The policy rate (also called the overnight rate target) is the rate the Bank of Canada sets to influence borrowing costs across the economy. Raising it generally makes borrowing more expensive and is meant to slow inflation; lowering it generally makes borrowing cheaper and is meant to support growth.
Commercial lenders set their own prime rates, and these typically move in step with the policy rate. Variable-rate mortgages and home equity lines of credit are usually priced as prime plus or minus a set amount.
Scheduled announcement dates
The Bank publishes its schedule of fixed announcement dates in advance, usually for the following year. Some announcements are paired with its Monetary Policy Report, which includes an updated economic outlook.
Upcoming dates: [PLACEHOLDER: current Bank of Canada announcement schedule — confirm from the Bank of Canada website]. The Bank can act outside the schedule in unusual circumstances, but that is rare.
How a decision affects your mortgage
Variable rate: if prime changes, your rate changes too. Depending on your lender, either your payment adjusts or your payment stays the same and more or less of it goes toward interest.
Fixed rate: your rate is locked for the term, so an announcement doesn't change it. New fixed rates are more closely tied to bond yields, which react to expectations about future policy rather than to a single decision.
Renewal or purchase: if you're shopping for a mortgage near an announcement, a rate hold can protect you from increases for a set period while you finalize your plans.
Should you time your decision?
Trying to predict announcements is hard, even for professional forecasters. A better approach is to choose a mortgage you can comfortably afford under a range of outcomes. Our brokers can help you compare fixed and variable options and stress-test your payment.
What to do on announcement day
If you have a variable-rate mortgage, watch for a notice from your lender confirming any change to prime and to your payment. If you're in the middle of buying or renewing, ask your broker whether your rate hold still makes sense or whether another option has become more attractive.
If you're on a fixed rate, nothing changes until renewal. It's still a good moment to note your renewal date and check how much time you have to plan. Most lenders let you arrange a renewal several months ahead.
How our brokers can help
Active Mortgage is a team of brokers working with a range of lenders. We can review your situation, explain the options that apply to you and compare real offers side by side. There's no cost to talk with us, and you're never under pressure to proceed.
Common questions
Does my fixed-rate payment change after an announcement?
No. A fixed rate stays the same until your term ends.
When do lenders change prime?
Major lenders usually announce changes to prime shortly after a Bank of Canada decision, often effective the next day. Check with your lender for specifics.
Where can I find the official dates?
The Bank of Canada publishes its schedule on its website. We list them here as a placeholder until confirmed.
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