BoC Cut on Oct 29—What It Means for Your Alberta Mortgage

The Bank of Canada just cut rates to 2.25%—and that’s good news if you’re on (or considering) a variable mortgage. Fixed rates may not move in lockstep, but they could follow if bond markets cooperate. Here’s the Alberta buyer’s guide to what changed, what hasn’t, and how to make the most of it.

1) What changed today?

• The BoC lowered the overnight rate by 0.25% and suggested it may pause here unless the data says otherwise.

• The next decision is scheduled for January 28, 2026.

2) Variable vs. fixed—who benefits first?

• Variable-rate mortgages move with your lender’s prime rate, which typically adjusts within a day or two of a BoC move. That means faster relief on interest cost—and possibly your payment, depending on your product.

• Fixed-rate mortgages follow bond yields (especially the 5-year). If yields drop, lenders often lower fixed rates; if yields rise, fixed rates can go the other way regardless of what the BoC does.

3) “How much could I save?”

• A quick rule of thumb: a 0.25% drop equals about $13/month per $100,000 of mortgage.

• On a $400,000 mortgage, that’s roughly $50–$55/month in savings (depending on your product).

4) Renewals & stress test reality

• Renewing in 2025–26? Many five-year fixed borrowers will still renew higher than 2024 payments.

• Some variable borrowers, however, will see modest declines—another reason to explore your options early.

5) Alberta buyer playbook (simple & local)

• Get pre-approved to lock a rate hold and budget—so you’re ready when the right home appears.

• Consider term length: Shorter fixed terms (like 2–3 years) can bridge uncertainty; variables offer flexibility if cuts continue.

• Run the numbers with a broker who can compare products, penalties, and portability—not just the headline rate.

Ready to talk money?

For the best rates available today, answers to your “fixed vs. variable” questions, or a fast pre-approval so you’re ready before the next “rate rush,” connect with MMG Mortgage—our trusted Alberta partner.