Bank of Canada interest rate: 2.25%
The Bank of Canada's policy interest rate is 2.25%, set on September 2, 2026. The next announcement is October 28, 2026 at 9:45 a.m. Eastern. Chartered-bank prime is 4.45%. Below: every decision date for 2026 and 2027, and what a quarter-point move does to a real mortgage payment.
The rates today
| Rate | Level | What it is |
|---|---|---|
| Policy interest rate | 2.25% | The target for overnight lending between banks. This is the rate people mean by "the Bank of Canada rate". |
| Bank Rate | 2.50% | What the Bank charges on its own overnight loans, a quarter point above the target. |
| Deposit rate | 2.20% | What the Bank pays on deposits held with it. |
| Chartered-bank prime | 4.45% | Set by each bank, but in practice the policy rate plus 2.20%. Variable mortgages and lines of credit are priced off it. |
The Bank does not set mortgage rates, savings rates or credit card rates. It sets one overnight rate, and everything else is priced from it by lenders, either directly through prime or indirectly through bond yields.
When the next decisions are
The Bank fixes eight dates a year and publishes the calendar a year in advance, so there is never a surprise about when. Announcements are at 9:45 a.m. Eastern.
Remaining in 2026
| Date | Monetary Policy Report |
|---|---|
| October 28, 2026 | Yes |
| December 9, 2026 | No |
All of 2027
| Date | Monetary Policy Report |
|---|---|
| January 27, 2027 | Yes |
| March 3, 2027 | No |
| April 28, 2027 | Yes |
| June 2, 2027 | No |
| July 21, 2027 | Yes |
| September 8, 2027 | No |
| October 27, 2027 | Yes |
| December 8, 2027 | No |
The four dates carrying a Monetary Policy Report are the ones that move markets most, because the Bank publishes its own forecasts for growth and inflation alongside the decision.
What a quarter point is worth on your mortgage
Our own arithmetic, not a Bank of Canada figure. A variable mortgage at 3.65% over 25 years, monthly payments, monthly compounding. A quarter-point move is the Bank's usual step.
| Mortgage | Payment now | A 0.25% cut saves | A 0.25% rise costs |
|---|---|---|---|
| $300,000 | $1,526.11 | $40.28 a month | $40.88 a month |
| $500,000 | $2,543.52 | $67.14 a month | $68.13 a month |
| $700,000 | $3,560.93 | $93.99 a month | $95.39 a month |
| $900,000 | $4,578.34 | $120.85 a month | $122.64 a month |
Roughly $13.43 a month for every $100,000 borrowed, at this rate and amortization. Put your own numbers in the mortgage payment calculator, or see what a renewal looks like at today's rates with the renewal calculator.
What moves with the policy rate, and what does not
- Moves the same day: prime, and with it variable mortgages, home equity lines of credit, and variable personal loans.
- Moves within days or weeks: savings account and GIC rates, which lenders reprice at their own pace. Compare them in the GIC versus savings account tool.
- Does not move: your fixed mortgage rate until renewal, and most credit cards, which charge a fixed rate set in the cardholder agreement.
- Moves before the decision: fixed mortgage rates, because they follow bond yields, and bond yields move on expectations.
Why the rate changes at all
The Bank has one job in law here: keep inflation near 2%. When inflation runs hot it raises the rate, which makes borrowing dearer, cools spending and slows price rises. When the economy weakens it cuts. The stress test that decides how large a mortgage you can get is a separate rule, set by the Office of the Superintendent of Financial Institutions, and it does not move with the policy rate. The affordability calculator applies it.
Related
See the inflation calculator for what prices have actually done, prepay versus invest for whether to put spare money against the mortgage, and what changed in 2026 for this year's tax and benefit figures.
Frequently asked questions
- What is the Bank of Canada interest rate right now?
- 2.25%. That is the target for the overnight rate, set on September 2, 2026. The Bank Rate is 2.50% and the deposit rate is 2.20%.
- When is the next Bank of Canada interest rate announcement?
- October 28, 2026, at 9:45 a.m. Eastern. The Bank sets eight dates a year and publishes them a year ahead, so the whole calendar is known in advance.
- What are the Bank of Canada announcement dates for 2027?
- January 27, 2027, March 3, 2027, April 28, 2027, June 2, 2027, July 21, 2027, September 8, 2027, October 27, 2027, December 8, 2027. All at 9:45 a.m. Eastern, published by the Bank on July 27, 2026. A Monetary Policy Report comes with the January, April, July and October decisions.
- What is the prime rate in Canada?
- 4.45%. Chartered banks set prime themselves, but in practice it sits 2.20% above the policy rate and moves the same day the Bank moves. Variable mortgages, lines of credit and most credit cards with a variable rate are priced off prime.
- What happens to my mortgage when the Bank of Canada cuts rates?
- If your mortgage is variable, prime falls and either your payment drops or more of it goes to principal, depending on the product. If it is fixed, nothing changes until you renew. A quarter-point cut on a $500,000 variable mortgage over 25 years is about $67.14 a month.
- Does the policy rate change fixed mortgage rates?
- Not directly. Fixed rates follow Government of Canada bond yields, which move on what investors expect the Bank to do next, not on what it just did. That is why fixed rates often move weeks before a decision and sometimes barely react on the day.
- What is the difference between the policy rate and the Bank Rate?
- The policy rate, 2.25%, is the target the Bank wants overnight lending between banks to sit at. The Bank Rate, 2.50%, is what the Bank itself charges on overnight loans, a quarter point higher. The deposit rate, 2.20%, is what it pays on deposits.
Sources
Every figure on this page comes from one of these primary sources. Data last verified .
- CMHC – Premium information for homeowner and small rental loans
- CMHC – Notice: CMHC Revises Homeowner Mortgage Loan Insurance Premiums (2024-06-05)
- Department of Finance Canada – Boldest mortgage reforms in decades come into force today (2024-12-15)
- Department of Finance Canada – Delivering the Boldest Mortgage Reforms in Decades (backgrounder, Sept 2024)
- FCAC – How much you need for a down payment (modified 2025-10-15)
- CMHC – CMHC Purchase (product page)
- Department of Finance Canada – Statement by the DPM and Minister of Finance on the Canadian housing market (2022-12-15)
- OSFI – Minimum qualifying rate for uninsured mortgages (modified 2026-01-29)
- Justice Laws – Interest Act, R.S.C. 1985, c. I-15, s. 6
- Bank of Canada – Bank of Canada maintains the policy rate at 2¼% (2026-09-02)
- Bank of Canada Valet – V80691335 Conventional mortgage 5-year (chartered banks)
- Ontario – Retail Sales Tax: Insurance and benefits plans (updated 2025-06-30)
- Saskatchewan Finance – PST-73 Insurance Contracts (revised April 2020)
- Manitoba Finance – RST Bulletin No. 061 Insurance (revised July 2020)
- CMHC – Debt service calculator (GDS 39% / TDS 44% for insured mortgages; 32% housing-cost rule of thumb)
- FCAC – Buying a home (home buying costs)
- FCAC – Paying off your mortgage faster (prepayment privileges)
- Ontario – Rent increase guideline (2026: 2.1%)
- Government of British Columbia – Rent increases (2026 maximum: 2.3%)
- Bank of Canada – Bank of Canada publishes its 2026 schedule for policy interest rate announcements and other major publications (2025-08-01)
- Bank of Canada – Bank of Canada publishes its 2027 schedule for policy interest rate announcements and other major publications (2026-07-27)
Rates as at , updated after each decision. Payment figures are our own calculation from the rate shown.