No rate hike, so why are fixed mortgage rates rising?

As of September 29, 2026, CIBC and TD raised some 3-year and 5-year fixed mortgage rates by about 0.20%. That means all six of Canada's big banks have now raised some fixed rates.

It was not the Bank of Canada

The main reason was not a central bank hike. Canada's 5-year government bond yield rose to 3.729%, a 52-week high. Fixed mortgage rates are influenced mainly by bond yields and lenders' funding costs, not directly by the Bank of Canada's policy rate. So even with the policy rate held at 2.25%, fixed rates can still rise.

If you are buying, switching or renewing

• Reconfirm your rate hold.
• Update your mortgage pre-approval and stress test.
• Compare different banks and lenders.
• Don't only wait for the Bank of Canada to announce a cut.

Source Canadian Mortgage Trends; Bank of Canada

General educational information only. Mortgage products, qualifications and rates vary by borrower and lender. Please consult a qualified mortgage professional about your situation.

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