Bank of Canada Raises Rate to 2.50%
What Burlington Buyers and Sellers Should Know

The Bank of Canada raised its policy interest rate from 2.25% to 2.50% on October 28, 2026. For Burlington homeowners and buyers, the important question is what that means for your mortgage, your budget and your next move.

The short answer: variable borrowing costs may increase, an existing fixed mortgage rate stays the same for the remainder of its term, and buyers should confirm their financing before making an offer. The Bank’s policy rate is not the rate you pay on your mortgage.

Why Did the Bank of Canada
Raise Rates?

The Bank pointed to persistent energy costs and the risk that businesses will pass more of those costs on to customers.

It expects inflation to reach about 3.5% by the end of 2026, average 3% in 2027 and return to its 2% target around mid-2028. The Bank said further rate increases may be needed, but it will proceed carefully given the uncertainty.

The next scheduled interest-rate announcement is December 9, 2026. Another increase is possible—not guaranteed.

Source: Bank of Canada’s October 28 announcement

What Changes for
Your Mortgage?

Variable-rate mortgages and home equity lines of credit

Variable borrowing rates generally depend on your lender’s prime rate. If your lender raises prime, your interest costs may increase.

How that affects your payment depends on your mortgage:

• Adjustable payments: Your regular payment may rise.
• Fixed payments with a variable interest rate: Your payment may initially stay the same, but more goes toward interest and less toward your mortgage balance.

Ask your lender how the change affects your payment, remaining amortization and any trigger-rate provisions.

Fixed-rate mortgages

If you already have a fixed-rate mortgage, this announcement does not change your contracted interest rate during the current term.

If you’re shopping for a new fixed mortgage or approaching renewal, ask for current quotes. Don’t assume a 0.25-percentage-point policy increase means every mortgage offer will rise by the same amount.

See the Financial Consumer Agency of Canada’s guide to mortgage interest.

What Burlington’s Housing
Numbers Tell Us

September’s Burlington Monthly Indicators report showed different conditions across property types:

The median price in the combined townhouse, condo and semi-detached category was 8.2% lower than a year earlier. Across all properties covered by that report, sales were down 14.1% year over year.

These are September figures—not evidence of how buyers and sellers have responded to October’s rate increase. They also describe broad categories, rather than the value or expected selling time of an individual home.

Source: September 2026 Burlington Monthly Indicators, published through Cornerstone

For more local context, see our Burlington and Hamilton market report.

Buying in Burlington?
Confirm Your Numbers First

Before making an offer, have your mortgage professional review your financing using current rates—even if you were pre-approved earlier.

Ask:

• Does my existing rate hold still apply, and when does it expire?
• Has my maximum qualifying amount changed?
• What would my monthly payment be for this particular property?
• What conditions still need to be satisfied for final approval?

A pre-approval may include a rate hold, depending on the lender and product, but it does not guarantee final mortgage approval or freeze a variable rate. Learn more about mortgage pre-approvals.

Look beyond the mortgage payment, too. Include property taxes, heating, insurance, maintenance and condo fees where applicable.

When comparing homes, consider recent comparable sales, time on market and competing listings. Some properties may offer room to negotiate on price, closing dates or conditions; others may still attract strong interest.

Selling in Burlington?
Focus on Your Competition

A rate increase can put pressure on buyers’ budgets, but it does not tell you exactly what your home will sell for.

Your pricing strategy should reflect recent comparable sales and the alternatives buyers can view today. Condition, presentation, property type and location all matter.

The September figures show that single-family homes sold faster, on average, than the combined townhouse, condo and semi-detached category. That is useful context—not a promise that every detached home will sell quickly or every condo needs a price reduction.

If you’re selling and buying, review the full move: expected sale proceeds, purchase costs, financing and closing dates.

Renewing Soon?
Compare Your Options

Ask your lender or mortgage broker to explain the payment and total borrowing costs under the options available to you. Compare more than the advertised rate, including prepayment privileges, penalties and flexibility.

The right choice depends on your finances and plans—not just the latest announcement.

Plan Your Next Move Around
Your Circumstances

You don’t need to predict the next Bank of Canada decision to make a thoughtful move. You need a realistic budget, clear financing and a good understanding of the homes you’re considering—or competing against.

Thinking about buying or selling in Burlington? Explore your options with the Mother Daughter Team. We’ll help you understand the local market and build a plan that fits your next step.

Laura Brown & Kristina Kritikos · Royal LePage Burloak Real Estate Services · 905-634-7755

• Bank of Canada — October 28, 2026 interest rate announcement
• Bank of Canada — upcoming announcements (December 9, 2026)
• Financial Consumer Agency of Canada — Interest on mortgages
• Financial Consumer Agency of Canada — Getting preapproved for a mortgage
• Cornerstone Association of REALTORS® — September 2026 Burlington Monthly Indicators

This article provides general information, not personalized mortgage or financial advice. Confirm rates, qualification requirements and mortgage terms with your lender or mortgage broker.

Before the decision: what we wrote ahead of October 28.