The Short Answer
It depends on your budget, your timeline and how much rate risk you can handle. After the October 28, 2026 hike, major banks raised prime from 4.45% to 4.70% on October 29. The best five-year variable rate was expected to be about 3.70%, below the best five-year fixed rate of about 4.34%. Locking in buys payment certainty; staying variable keeps a lower rate today but carries more risk if the Bank of Canada raises rates again. If you are buying or renewing soon, a rate hold of up to 120 days lets you protect a rate while you decide.
Not sure whether to lock in? Call the Kaizen Real Estate Team at (647) 370-8885.
Where Rates Are Now
The Bank of Canada raised its policy rate to 2.5% on October 28, its first increase since 2023. Major banks, including RBC, TD, BMO, CIBC, Scotiabank and National Bank, raised their prime rate to 4.70% effective October 29. Fixed rates follow five-year bond yields, which had already moved up before the decision.
Michael John Lau, a REALTORĀ® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, encourages clients to review their mortgage with a licensed mortgage professional now, before the next decision on December 9.
Questions About Your Mortgage?
Every budget and every mortgage is different. Call the Kaizen Real Estate Team at (647) 370-8885 and speak to a REALTORĀ® who works this market daily.
Variable vs. Fixed Today
Variable | Fixed | |
|---|---|---|
Best five-year rate, late October 2026 | About 3.70% | About 4.34% |
Payment on $700,000, 25 years | About $3,569 | About $3,812 |
If rates rise again | Costs go up | Payment stays the same |
If rates fall | Costs go down | Payment stays the same |
Penalty to break | Usually three monthsā interest | Often the greater of three monthsā interest or the IRD |
Payments are estimates for comparison only.
Neeraj Moolchandani on Locking In
Neeraj Moolchandani, REALTORĀ® at Kaizen Real Estate, tells clients that the right mortgage is the one that lets them sleep at night.
For some, that is a fixed payment. For others, it is a lower rate today with room in the budget. Both can be the right answer.
When Locking In Often Makes Sense
- Your budget is tight and a higher payment would cause stress.
- You expect to stay in the home for the full term.
- You would rather not watch every rate announcement.
- You hold a fixed-payment variable mortgage close to its trigger rate.
When Staying Variable Can Still Work
- You have room in your budget for higher payments.
- You may sell or move before the term ends, where a lower penalty helps.
- You can make extra payments when rates rise.
- The gap between variable and fixed is wide enough to cushion a few more increases.
Buying or Renewing Soon?
The Kaizen Real Estate Team can connect you with trusted mortgage professionals and plan your purchase around todayās rates.
How to Lock In
- Convert: many variable mortgages can convert to a fixed term with the same lender, often without a penalty. Ask what rate your lender offers.
- Rate hold: buyers and those renewing soon can often hold a rate for 90 to 120 days.
- Renewal: switching lenders at renewal with the same amount and amortization does not require the stress test.
Compare the conversion rate with what other lenders offer before signing.
What to Watch Before December 9
- Inflation: 3.1% in September 2026, driven by energy prices.
- Jobs: Canada lost 68,300 jobs in September.
- Bond yields, which move fixed rates.
- The Bank of Canadaās December 9 decision.
See what to expect from the December 9 decision.
Making the Decision
No one knows exactly where rates will go. The better question is which payment you can live with if you are wrong. Ultimately, the decision is yours. The goal is to make sure you have all the information before you choose.
Next Steps
- Mortgage calculator: compare fixed and variable payments.
- Buying your next home: plan around today's rates.
- Request a free home evaluation: know your equity before renewal.
Work With Michael John Lau in Markham
Michael John Lau helps Markham buyers and sellers turn market numbers into a clear plan for their own situation. That means looking past city-wide averages to recent sales on your street, explaining the reasoning behind every recommendation, and making sure you have the information you need to decide with confidence.
š Contact Michael John Lau, REALTORĀ®
š www.callmikelau.com
š” www.livinginmarkham.ca
š¢ www.kaizenrealestate.ca