Before the October Bank of Canada Decision: 5 Questions to Ask Your Lender

The Bank of Canada makes its next interest rate announcement on Wednesday, October 28, 2026, one of the last scheduled decisions of the year. Nobody can tell you which way it will go. You can, however, get five answers from your lender this week that will make whatever happens easier to handle.

1. Ask for your exact maturity date and whether they will hold a renewal rate for you now. Fixed rates follow five-year Government of Canada bond yields, so they often move before the Bank says anything. Many lenders will hold a rate for around 120 days. Ask two follow-ups: if rates drop before you sign, do you get the lower one? And can they put the held rate in writing? If you locked in a five-year fixed back in 2021, your renewal is landing now. Knowing your date gives you time to compare offers instead of signing whatever arrives in the mail.
2. Ask whether your variable payment stays the same or changes, and what your trigger rate is. Variable mortgages come in two types:Your trigger rate is the point where your fixed payment no longer covers the interest. Past that point, your balance stops shrinking. Every contract sets it differently, so get your number from your lender. Variable rates follow prime almost right away after a Bank of Canada move. Ask what would happen to your payment, or your amortization (the total years to pay off the loan), if prime went up or down.
   • On a variable rate mortgage (VRM), your payment moves when prime moves.
   • On an adjustable-style mortgage with a fixed payment, the payment stays put and the split between interest and principal shifts instead.
3. Ask what it would cost, in dollars, to break your mortgage or switch lenders. Get the actual figure, not just the formula. On a variable mortgage, the penalty is usually three months' interest. Fixed mortgages often use a different calculation that can come out much higher. Also ask about discharge fees and legal costs. Some lenders run switch programs that cover the appraisal and legal fees when you move your mortgage to them at renewal. Your cost to leave is the number you compare against any rate savings.
4. Ask whether you would have to requalify if you moved to another lender. If your mortgage is insured (you put less than 20% down and paid mortgage insurance), you can switch lenders at renewal without taking the stress test again.For contractors, freelancers and incorporated owners, this is where the gap between your taxable income and your real cash flow matters. Lenders generally want two years of Notices of Assessment from the CRA and look for steady income across both. Pull those documents now. That way you find out where you stand before you need to.
5. Ask whether your mortgage has restrictions that would stop you from refinancing. Some of the lowest-rate products include a "bona fide sale" clause. That means you can only break the mortgage if you sell the home to an unrelated buyer, which rules out refinancing to consolidate debt or free up equity. If you run a business, a slightly higher rate with a re-advanceable line of credit attached may help your cash flow more than the lowest posted number. Many homeowners across BC, including here on Vancouver Island, still have solid equity even after a few years of higher rates. Make sure your mortgage lets you use it if you need to.

The item people skip most often is number three. If you are not planning to move, the cost of leaving feels beside the point. But that one dollar figure tells you whether a better offer elsewhere is worth anything to you. Get it, along with the other four answers, and you will be making calm choices on October 28 instead of reacting to the news.

If you would like a second set of eyes, send me what your lender tells you. I will compare it with what other BC lenders are offering and walk you through the numbers in plain language.