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Indi Mortgage
Rate increase

The surprise hike — the pause ends

Policy rate
4.75%
Prime
6.95%
Move
25 bps
Inflation
2.8%

The Bank restarted after two holds, and that surprise is the whole argument for a rate hold on a pre-approval: it protects you from exactly this.

In payment terms, a quarter-point move adds roughly $16 a month to a variable-rate mortgage for every $100,000 borrowed, on a 25-year amortization. On a $300,000 mortgage that is about $48 a month.

The practical move at a peak is to plan the renewal, not to predict the Bank. If your term ends within a year, it is worth pricing the options early — including whether breaking and re-signing beats riding it out.

What the Bank said

“The Bank of Canada today increased its target for the overnight rate to 4.75%, with the Bank Rate at 5% and the deposit rate at 4.75%. Globally, consumer price inflation is coming down, largely reflecting lower energy prices compared to a year ago, but underlying inflation remains stubbornly high.”

The rate path around this decision

0.9%2.0%3.2%4.4%Dec 20Aug 21Apr 22Dec 22Aug 23Sep 23

For context, unemployment was running at about 5.4% and inflation at 2.8% around this decision.

Where this leaves you

Rate announcements make headlines; approvals turn on your own numbers. If you're buying, renewing or refinancing in Fort McMurray, the useful next step is finding out what you actually qualify for — see current rates, run the math, or start an application. You can also follow the local market in our Fort McMurray housing market reports.

What does 4.75% mean for your mortgage?

Every file is different. Get a real answer based on your income and your situation.