The Bank of Canada Raised Its Rate Today. Here Is What That Means for You.

Today, October 28, 2026, the Bank of Canada raised its policy rate by 25 basis points to 2.5 per cent. It is the first increase since July 2023, which means a quarter of a percentage point in plainer terms. If you are thinking about buying or selling a home in Toronto, you probably have questions about what this actually changes for you. That is what I want to talk about today, the way I would explain it to a friend over coffee.

I am Tory Akene, a REALTOR® with Real Broker Ontario Ltd., Brokerage, and my job is to help you make decisions with your eyes open, not to scare you or rush you. So here is the plain-language version of today's announcement and what I would be doing about it if I were in your shoes.

What Actually Happened Today?

The policy rate is the interest rate the Bank of Canada uses as the anchor for borrowing across the country. When it moves, it sends a ripple through the rates you see on mortgages, lines of credit, and savings accounts. A rise of 25 basis points, a quarter of one percentage point, is a modest move, but it is a signal worth paying attention to because it is the first one in that direction in more than three years.

What matters more than any single number is that rates are no longer on a straight line downward, and they may not be for a while. That changes the conversation for both buyers and sellers. Let us take each side in turn.

What This Means for Buyers

If you have been waiting for the perfect moment, here is the honest truth: there is no perfect moment, and there never was one. The best time to buy has always been when you are genuinely ready. Today's news does not change that, but it does change what being ready should look like.

First, get pre-approved. A preapproval tells you exactly how much home you can afford and it protects you from rate moves while you search. Most lenders hold a quoted rate for a set number of days, which gives you a window where today's rate is your rate, even if the market shifts again. That is real breathing room, and it costs nothing to start the conversation.

Second, ask about rate holds. When you get that preapproval, ask your mortgage professional how long the hold lasts, what it would take to extend it, and what happens if it expires. Knowing the answers before you need them means no surprises halfway through a purchase.

Third, budget for today's rates, not for the rates you hope appear later. Base your monthly numbers on what you can qualify for right now, and leave a little cushion for property taxes, home insurance, utilities, and the everyday costs of owning. If the numbers are comfortable at today's rate, then they are comfortable, full stop.

And one more thing that matters more than the rate itself: what the home will cost you after you move in. A move-in ready home, one that needs no renovations and no surprise repairs, protects your budget in a way a fixer-upper never can. You are buying a monthly cost you can predict, not a project with an open-ended price tag.

What This Means for Sellers

For sellers, today's announcement is a gentle reminder that pricing and presentation matter more than ever. When rates move up, buyers' budgets tighten, and every buyer becomes more selective. That is not bad news, it is just a shift in how homes sell.

The homes that sell well in this market are the ones priced realistically from day one and presented in their best light. That means honest pricing based on a careful look at what comparable homes have actually sold for, not what we hope they sold for. It means a clean, bright, well-staged space in the photos and in person. It means being ready for showings and easy to work with.

A well-priced, well-presented home stands out in any market, and right now standing out matters more than it did six months ago. If you are thinking about selling, this is the moment to ask a REALTOR® you trust for an honest conversation about your home's position.

A Home That Is Ready When You Are

If you are a buyer, here is something worth knowing: Unit 21 at 630 Rogers Road is currently for sale and available to tour. It is a move-in ready two-bedroom, one-bath main-floor townhouse built in 2019, with an open-concept layout, a modern kitchen with quartz countertops and gold accents, full-size in-unit laundry, and one owned parking space. No renovations, no extra projects, just a home you can walk into and start living in. If today's news has you thinking about what your numbers really buy, this is a great place to start.

This post is general information, not financial advice. The policy rate decision described here is sourced from the Bank of Canada's official announcement of October 28, 2026. Mortgage products and lender terms vary, so please speak with a licensed mortgage professional about rates, preapprovals, and rate holds specific to your situation before making any decision.