Blu’s News : November 2026
Interest Rates Are Up Again
Well, here we go again. Interest rates are going up! On October 28th, the Bank of Canada raised its key interest rate from 2.25% to 2.50%, the first increase in over three years. Naturally, it’s making headlines. But here’s the interesting part: fixed mortgage rates have already been climbing for a while. So how does that work? The answer is that fixed and variable mortgage rates are influenced by two very different things.
Variable rates follow the Bank of Canada. Eight times a year, the Bank decides whether to raise, lower, or hold its overnight lending rate. This influences the prime rate set by commercial banks, which in turn affects variable-rate mortgages, lines of credit, and other floating-rate loans. Pretty straightforward.
Fixed rates, on the other hand, follow the bond market. And this is where things get interesting. A bond is essentially an IOU. The government borrows money from investors, pays them interest, and promises to return their investment at maturity. These bonds are bought and sold daily, and their yields (the return investors earn) move with the market. When bond prices fall, yields rise.
Why should you care? Because lenders use Government of Canada bond yields, particularly the five-year bond, as a benchmark for pricing fixed mortgages. When those yields rise, fixed mortgage rates tend to follow. And unlike the Bank of Canada, which makes scheduled announcements, the bond market is constantly moving, anticipating inflation, economic conditions, and what interest rates might do next.
Well, here we go again. Interest rates are going up! On October 28th, the Bank of Canada raised its key interest rate from 2.25% to 2.50%, the first increase in over three years. Naturally, it’s making headlines. But here’s the interesting part: fixed mortgage rates have already been climbing for a while. So how does that work? The answer is that fixed and variable mortgage rates are influenced by two very different things.
Variable rates follow the Bank of Canada. Eight times a year, the Bank decides whether to raise, lower, or hold its overnight lending rate. This influences the prime rate set by commercial banks, which in turn affects variable-rate mortgages, lines of credit, and other floating-rate loans. Pretty straightforward.
Fixed rates, on the other hand, follow the bond market. And this is where things get interesting. A bond is essentially an IOU. The government borrows money from investors, pays them interest, and promises to return their investment at maturity. These bonds are bought and sold daily, and their yields (the return investors earn) move with the market. When bond prices fall, yields rise.
Why should you care? Because lenders use Government of Canada bond yields, particularly the five-year bond, as a benchmark for pricing fixed mortgages. When those yields rise, fixed mortgage rates tend to follow. And unlike the Bank of Canada, which makes scheduled announcements, the bond market is constantly moving, anticipating inflation, economic conditions, and what interest rates might do next.
So what does this mean for you? If you have a fixed mortgage, your existing rate isn’t changing. If you’re on a variable mortgage or have a HELOC, your borrowing costs will likely increase. And if you’re buying or renewing, remember that fixed rates may have already adjusted long before this week’s announcement.
As for Vancouver real estate, interest rates certainly influence affordability and buyer confidence, but they’re only one piece of the puzzle. We’ve always believed that a good property doesn’t become a bad property because rates move a quarter of a point. And a bad property doesn’t become a good one just because rates come down.
Location, quality, layout, condition, and most importantly, the price you pay, still matter enormously. Interest rates will always move. Understanding what you’re buying, what it’s worth, and why? That’s what we’re here for!
Warmly,
Shawn Lee and the Blu Team
As for Vancouver real estate, interest rates certainly influence affordability and buyer confidence, but they’re only one piece of the puzzle. We’ve always believed that a good property doesn’t become a bad property because rates move a quarter of a point. And a bad property doesn’t become a good one just because rates come down.
Location, quality, layout, condition, and most importantly, the price you pay, still matter enormously. Interest rates will always move. Understanding what you’re buying, what it’s worth, and why? That’s what we’re here for!
Warmly,
Shawn Lee and the Blu Team
Out & About:
Lit! Neons of Vancouver
A little piece of old Vancouver is glowing again. Lit! Neons of Vancouver opens October 30th at The Post (658 Homer Street), bringing vintage neon signs from the Museum of Vancouver collection back to life!
Deals & Dreams
Whether you’re searching for a stunning dream home or a deal too good to pass up, we’ve got you covered. Every month, we handpick the most breathtaking properties and unbeatable bargains on the market, bringing you the best of both worlds.
#312 – 161 E 1st Avenue, Vancouver
Big city energy, little maintenance. This stylish 1-bedroom + flex at Block 100 puts you right in the heart of the action for under $600k. Think sunny south-facing windows, sleek finishes, heated bathroom floors and A/C for those hot Vancouver summers. Add a gym, concierge, rooftop garden, parking and storage, and you’ve got the full package. With Olympic Village, Main Street and Mount Pleasant at your doorstep, great food, coffee and city life are never far away. Smart investment, sweet location, easy living. Hit up Jen Friesen for more on our deal of the month.
Big city energy, little maintenance. This stylish 1-bedroom + flex at Block 100 puts you right in the heart of the action for under $600k. Think sunny south-facing windows, sleek finishes, heated bathroom floors and A/C for those hot Vancouver summers. Add a gym, concierge, rooftop garden, parking and storage, and you’ve got the full package. With Olympic Village, Main Street and Mount Pleasant at your doorstep, great food, coffee and city life are never far away. Smart investment, sweet location, easy living. Hit up Jen Friesen for more on our deal of the month.
3445 Porter Street, Vancouver
This month’s dream is Shawn‘s East Van townhouse that lives like a house! Offered at $1,599,000, this very rare 1,500 sq ft home offers no shared walls, incredible privacy and an unbeatable location directly across from Trout Lake. Floor-to-ceiling windows fill the home with natural light, while two generous bedrooms, three bathrooms and a flexible layout offer plenty of room to live. The real showstopper? A massive 34′ x 15′ private rooftop deck with sweeping views of Trout Lake, the city and North Shore mountains.
This month’s dream is Shawn‘s East Van townhouse that lives like a house! Offered at $1,599,000, this very rare 1,500 sq ft home offers no shared walls, incredible privacy and an unbeatable location directly across from Trout Lake. Floor-to-ceiling windows fill the home with natural light, while two generous bedrooms, three bathrooms and a flexible layout offer plenty of room to live. The real showstopper? A massive 34′ x 15′ private rooftop deck with sweeping views of Trout Lake, the city and North Shore mountains.
Local Spotlight:
Kavita
There’s a lot of buzz around Kavita, and for good reason. Named after Chef Tushar Tondvalkar’s mother, this Mount Pleasant hotspot brings a creative twist to regional Indian cuisine, mixing bold flavours with fresh BC ingredients. Add inventive cocktails, warm hospitality, and a spot on Canada’s 100 Best Restaurants of 2026, and it’s easy to see why people are talking.
Did You Know?
The 33' Wide Lot
Ever wonder why so many Vancouver properties are exactly 33 feet wide? It dates back to the 1800s, when surveyors used a 66-foot measuring tool called Gunter’s chain. Streets were often laid out 66 feet wide, while residential lots were divided into 33-foot widths. More than 400 years after the chain was invented, this simple measurement still shapes Vancouver’s neighbourhoods. Who knew?
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