Bank of Canada raises rates—again

November 3, 2022




The Bank of Canada raised the overnight interest rate 50 basis points, bringing it to 3.75 per cent and pushing the prime rate to 5.95 per cent at its setting on October 26.
According to calculations by Ratehub.ca, every 50-basis point increase means a homeowner with a variable-rate mortgage can expect to pay approximately $28 more per month per $100,000 of mortgage.
The lowest posted five-year fixed variable rate mortgage at major banks as of October 26 at 10 a.m. was 3.25 per cent at TD. Other banks were between 5.45 per cent to 6.19 per cent.
While those holding variable-rate mortgages will feel the pinch first, those renewing fixed-rate mortgages within the coming months will also be stung. 
Posted five-year fixed mortgage rates at major banks now range from 4.95 per cent at TD to 6.49 per cent at CIBC.
Bank of Canada governor Tiff Macklem hinted that even higher rates may be coming because of inflationary pressure. "This tightening phase will draw to a close. We are getting closer, but we are not there yet," Macklem said in prepared remarks ahead of a news conference.