On October 28, 2026, the Bank of Canada raised its key interest rate by a quarter of a percentage point, from 2.25% to 2.5%. It is the Bank's first increase since July 2023, after holding the rate steady at its last seven announcements.

If you own a home, are thinking of buying, or have a renewal coming up, here is a plain-English look at what changed, what it means for your mortgage, and what the Bank is signalling for the months ahead.

What the Bank of Canada announced

• The policy rate (the rate that guides what banks charge each other overnight) is now 2.5%.

• The reason: inflation. Consumer prices have been rising at around 3% a year since April, mostly because of high oil and fuel prices linked to the conflict in the Middle East, now in its eighth month. Leaving out gasoline, inflation was 2.2% in September. The worry is what comes next: higher fuel costs make it more expensive to produce and transport goods, and the Bank's surveys suggest businesses will pass more of those costs on to customers over the next year. The Bank raised its rate to lower the risk that high energy prices spread into the cost of other goods and services.

• The outlook: the Bank expects inflation to climb to about 3.5% by the end of this year, average about 3% in 2027 (a full point higher than it forecast in July), and return to its 2% target around the middle of 2028.

• The economy: growth picked up through the middle of the year and was stronger than the Bank expected. It expects growth to slow late this year as new US tariffs take effect, then pick up again in 2027. It forecasts 1% growth for 2026 and 2% in each of 2027 and 2028. Unemployment has been around 6.5% for several months.

• Housing: the Bank expects housing activity to remain relatively weak.

What it means for your mortgage

Variable-rate mortgages and lines of credit

Variable rates follow your lender's prime rate, and prime follows the Bank of Canada. Before this announcement, prime at Canada's big banks was 4.45%. Lenders usually move prime by the same amount within a day, which would take it to about 4.70%. Check with your own lender for the exact figure and the date it takes effect.

• If your payment adjusts with the rate, your payment will go up. As a rough guide, on a $500,000 mortgage with 25 years left, a 0.25% increase adds about $68 a month.

• If your payment is fixed (common with many variable mortgages), your payment stays the same, but more of it now goes to interest and less to paying down the balance.

• Home equity lines of credit tied to prime will also cost a little more each month.

Fixed-rate mortgages

If you are partway through a fixed term, nothing changes for you today. Your rate and payment stay the same until renewal.

Fixed rates on new mortgages are driven mainly by the bond market rather than the Bank of Canada's rate. Bond yields often move ahead of the Bank, based on where investors think rates are heading, and the Bank notes that government bond yields in advanced economies have risen since July. With inflation now expected to stay higher for longer, it would not be unusual to see some lenders adjust their fixed rates as well.

Renewing in the next year?

Many homeowners who locked in a few years ago are renewing now. If your renewal is within the next 4 to 6 months, it is worth getting advice early. Many lenders will hold a rate for up to 120 days, which can protect you if rates rise further before your renewal date.

Buying a home?

A quarter-point change is modest, but it does affect how much you can borrow and what you qualify for under the mortgage stress test. If you are pre-approved, ask your lender or mortgage broker whether your approval and rate hold still stand, and for how long.

What the Bank is forecasting next, and why

The Bank of Canada does not promise future moves, but its message this time was clear on two points:

1. Further increases are possible. In the Bank's words, "There could be a need to increase the policy rate further." With inflation expected to stay around 3% through 2027, the Bank left the door open to raising rates again.

2. It will move carefully. The Bank also said that "given uncertainties, Governing Council agreed to proceed carefully." Growth is expected to slow as US tariffs bite, unemployment is around 6.5%, and the Bank still sees some slack in the economy. It is weighing the risk of inflation against a softer economy.

There is some good news in the details. Leaving out gasoline, inflation is close to the Bank's 2% target, and Canadians' longer-term expectations for inflation remain steady. Today's increase is about stopping high energy prices from spreading, not about an overheated economy.

The main things the Bank says it is watching:

• Energy prices and events in the Middle East, the biggest driver of today's higher inflation. The Bank says there is "no clear path to resolution".

• How businesses respond to rising costs, and whether they pass them on to customers, which would spread inflation more widely.

• Canada and US trade relations, including the effect of tariffs on jobs and growth.

The next announcement is Wednesday, December 9, 2026, and the Bank's next full economic forecast comes out on January 27, 2027. If inflation keeps climbing, another increase is possible. If energy prices ease or the economy slows faster than expected, the Bank may hold.

What this means for Fraser Valley buyers and sellers

A single quarter-point move rarely changes the picture on its own. What matters most is your own situation: when your mortgage renews, how much room you have in your budget, and how long you plan to stay in your home.

If you are thinking about buying or selling in Langley, Surrey, Cloverdale or anywhere in the Fraser Valley, we are always happy to talk it through, and we can put you in touch with trusted mortgage professionals who can run the numbers for your situation. Call us at 604-789-2140 or request a free home evaluation.

This article is for general information only and is not financial advice. Rates and lender policies change, so speak with a qualified mortgage professional before making decisions.

Sources: Bank of Canada press release, "Bank of Canada raises the policy rate by 25 basis points to 2½%" (October 28, 2026), and CBC News.

A recent Financial Post column by mortgage strategist Robert McLister caught my attention this month, and I wanted to share what it means for buyers, homeowners and sellers here in Langley and the Fraser Valley. You can read the original article here. Below is my take, along with the local numbers I am watching.

The headline

McLister reports, using data from Zealty.ca, that Greater Vancouver and the Fraser Valley had 946 court-ordered residential listings through September. The record in Zealty's data is 1,174, set in 2012, and the site is forecasting that this year could challenge it. More than 80% of these listings are foreclosures.

The part buyers should pay attention to

These properties are not moving quickly. Zealty says only 38% have sold so far this year, compared with a typical year where about 60% sell and half are gone by September. They are taking a median of about 70 days to sell versus about 23 for regular listings.

Discounts exist but are modest. Court-ordered homes are selling about 14% below assessed value this year, compared with roughly 5% for a regular sale. That is better than a typical purchase, but it is not the 30 to 40% off that many people expect, because the court's job is to get close to fair market value.

What the buying process involves

The process is the main trade-off. Based on Zealty's outline in the article, the court only approves unconditional offers, there is a court hearing where other buyers can submit sealed bids, and the whole thing typically takes two to three months from offer to keys. You can do all of that work and still lose the home on hearing day. If you are curious about the step-by-step timeline, it is laid out in the original article.

What I am seeing locally

The September numbers from the Fraser Valley Real Estate Board give some useful context: 922 sales, 9,763 active listings (about 31% above the 10-year seasonal average), and a sales-to-active-listings ratio of roughly 9%. That is a buyer's market, which means buyers have more choice and more room to negotiate on all types of listings, not only court-ordered ones.

One thing to keep in mind is that the court-ordered sale process takes quite a long time. A lot of the listings we are seeing on the market today have been in the process for the last year or so. It will be interesting to see how this trend continues as economic uncertainty stays elevated.

What this means for you

If you are buying: a court-ordered sale can offer a bigger discount, but expect a longer timeline, no conditions, and the chance of being outbid. Talk to a lawyer and your lender early, and set aside a budget for repairs, since a home inspection condition is not an option.

If you are a homeowner with a renewal coming up: the article notes that some owners are struggling to renew at higher rates. If that worries you, speak with your lender or a mortgage professional well before your renewal date so you have options.

If you are thinking of selling: more distressed inventory is one more thing buyers are weighing, so pricing and presentation matter. A no-obligation home evaluation will show you where your home sits in today's market.

Have questions about how this applies to you? Call or text 604-789-2140 or email info@garryvoigt.com.

This post is general information only and is not financial, legal or investment advice. Court-ordered sales have their own legal requirements, so speak with a lawyer before making an offer.

Sources

• Robert McLister, "Vancouver's court-ordered property listings are nearing a 20-year high — and they're not selling," Financial Post, October 9, 2026 (updated October 16, 2026): https://financialpost.com/real-estate/mortgages/vancouver-property-listings-20-year-high-not-selling

• Court-ordered listing data cited in the article is from Zealty.ca: https://www.zealty.ca

• Fraser Valley Real Estate Board, September 2026 monthly market statistics.

When buyers are preparing to purchase a home, the focus is often on one number: the purchase price. But the purchase price is only part of the financial picture. Understanding the additional costs that come with buying a home can help you budget realistically and avoid surprises along the way.

Closing costs are one of the biggest expenses buyers need to plan for. Depending on the property and the transaction, these can include legal or notary fees, land transfer or property taxes, title-related costs, and other administrative expenses.

There can also be inspection and appraisal costs. A home inspection can provide valuable information about the condition of the property and identify potential issues before you finalize the purchase. An appraisal may also be required by your lender as part of the financing process.

Then there are the expenses that come after you get the keys. Moving costs, new furniture, window coverings, appliances, painting, minor repairs, and other updates can add up quickly. Even a home that appears move-in ready may have a few things you’ll want to change once you make it your own.

Another important consideration is your ongoing monthly budget. Your mortgage payment is only one piece of homeownership. Property taxes, insurance, utilities, maintenance, strata or HOA fees where applicable, and unexpected repairs should all be considered when determining what you can comfortably afford.

The goal isn’t to discourage you from buying—it’s to help you go into the process prepared. A realistic budget allows you to shop with greater confidence and make decisions based on the true cost of homeownership, rather than simply the listing price.

Before you start your home search, take some time to look at the complete financial picture. Knowing your numbers upfront can make the entire buying process feel much more manageable.

Have questions about what you should budget for when buying a home? I’m always happy to help you understand the numbers and prepare for your next move

Whether you’re buying your first home, selling a property, or simply keeping an eye on the market, real estate is a major decision. With the right information and preparation, the process can feel much more manageable.

Start With Your Goals

Every real estate journey is different. Before making a move, take some time to consider what matters most to you.

Are you looking for more space? Hoping to downsize? Interested in investing? Or perhaps you’re simply curious about what your current property may be worth?

Having a clear idea of your goals can help shape the decisions that follow.

Understanding the Market

Real estate markets can vary significantly from one neighbourhood to another. Factors such as inventory, buyer demand, interest rates, property condition, and location can all influence the buying and selling process.

Rather than relying solely on headlines or general market statistics, it’s helpful to look at the conditions affecting the specific area and type of property you’re interested in.

Preparation Makes a Difference

For buyers, getting financially prepared early can make the search much easier. Understanding your budget, financing options, and must-have features can help narrow your choices.

For sellers, presentation and pricing are important considerations. Small improvements, thoughtful staging, professional photography, and a well-planned marketing strategy can all help a property make a strong first impression.

Work With the Right Guidance

Real estate involves a lot of moving pieces, from negotiations and paperwork to inspections, financing, and closing. Having a knowledgeable professional by your side can help you understand your options and navigate the process with greater confidence.

The goal isn’t simply to make a transaction. It’s to make informed decisions that fit your circumstances and long-term plans.

Thinking About Your Next Move?

Whether you’re considering buying, selling, or simply want to understand what’s happening in the local market, now is a great time to start gathering information.

If you have questions about your neighbourhood, your property’s potential value, or what the current market could mean for your plans, feel free to reach out. I’m always happy to have a conversation and help you explore your options.