A rate increase changes the calculation—not the entire market overnight
On October 28, 2026, the Bank of Canada raised its overnight policy rate by 0.25 percentage points, from 2.25% to 2.50%. It cited persistent inflation risks associated with elevated energy prices. The Bank forecast Canadian growth of about 1% in 2026 and noted that housing activity remained relatively weak.
The local economy matters, too. Statistics Canada reported that the Montréal CMA unemployment rate rose from 6.5% in August to 7.4% in September 2026. Mortgage decisions should therefore account for income stability as well as interest rates.
Three checks before buying
First, test affordability. Ask a lender or mortgage broker to compare payments under several rate scenarios, including a renewal scenario. Variable-rate products can react differently from fixed-rate mortgages, which also depend on bond markets and lender pricing.
Second, inspect the property, not only the payment. Condo fees, special assessments, insurance and taxes can materially change carrying costs. For a house, include maintenance and future repairs.
Third, negotiate using local evidence. Greater Montréal's Q3 sales declined while supply increased, but detached houses and condos did not move identically. A rate announcement alone does not establish the right offer price.
A practical seller response
Buyers may be more sensitive to financing conditions. Sellers should prepare complete documents, confirm pricing against recent comparable sales and avoid assuming that every listing will generate multiple offers.
Yucong Wang Team's perspective: There is no single “buy now” or “wait” answer. Financing, neighbourhood supply, property quality and your planned holding period must be assessed together.
Discuss your Montréal buying or selling strategy with Yucong Wang Team.
Sources: Bank of Canada · October 28, 2026 rate announcement · Statistics Canada · September 2026 labour-force data · APCIQ / QPAREB · Q3 2026 Québec and Montréal market report