Fixed Mortgage Rates Are Rising Again. What Should You Do?
Just when Canadians were starting to feel more optimistic about borrowing costs, fixed mortgage rates have begun moving higher again.
What's particularly confusing is that the Bank of Canada hasn't raised its overnight rate. So why are fixed mortgage rates increasing, and what does that mean if you're buying a home, approaching renewal or considering refinancing?
The answer has a lot to do with what's happening in the bond market. But understanding why rates are moving is only part of the equation. Knowing what to do about it is where things get interesting.
We've put together a practical new guide, Fixed Mortgage Rates Are Rising: What Should You Do?, that explains what's happening and, more importantly, how to make smarter mortgage decisions in an unpredictable rate environment.
The Decision Isn't as Simple as Locking In
When fixed rates start climbing, it's tempting to act quickly before they rise further. Others take the opposite approach, choosing shorter mortgage terms or delaying decisions in hopes that rates will eventually fall.
Both approaches carry risks.
For example, choosing a shorter mortgage term could work in your favour if rates decline. But what happens if they remain elevated when it's time to renew again?
Similarly, locking into a longer term provides certainty, but could limit your flexibility if your circumstances change.
And for homeowners approaching renewal, even a modest rate increase could translate into hundreds of dollars in additional monthly payments.
The real question isn't where rates are going next. It's whether your mortgage strategy makes sense if they don't move the way you expect.
A Little Preparation Can Make a Big Difference
The good news is that you don't need to predict interest rates to make a well-informed decision.
Whether you're purchasing, renewing or refinancing, there are practical ways to evaluate your options, manage payment risk and avoid costly mistakes.
The key is understanding which considerations matter most for your particular situation.
Our new guide walks through those decisions in detail, including how to compare mortgage terms, prepare for higher payments, evaluate fixed versus variable options and recognize when waiting could actually work against you.
Before making your next mortgage decision, make sure you understand what you're choosing and why.
Disclaimer: The information in this article is provided for general educational purposes only and does not constitute financial, legal, or tax advice. Readers should consult qualified professionals before making decisions based on this content. View our full Disclaimers & Privacy Policy →
Just when Canadians were starting to feel more optimistic about borrowing costs, fixed mortgage rates have begun moving higher again.
What's particularly confusing is that the Bank of Canada hasn't raised its overnight rate. So why are fixed mortgage rates increasing, and what does that mean if you're buying a home, approaching renewal or considering refinancing?
The answer has a lot to do with what's happening in the bond market. But understanding why rates are moving is only part of the equation. Knowing what to do about it is where things get interesting.
We've put together a practical new guide, Fixed Mortgage Rates Are Rising: What Should You Do?, that explains what's happening and, more importantly, how to make smarter mortgage decisions in an unpredictable rate environment.
The Decision Isn't as Simple as Locking In
When fixed rates start climbing, it's tempting to act quickly before they rise further. Others take the opposite approach, choosing shorter mortgage terms or delaying decisions in hopes that rates will eventually fall.
Both approaches carry risks.
For example, choosing a shorter mortgage term could work in your favour if rates decline. But what happens if they remain elevated when it's time to renew again?
Similarly, locking into a longer term provides certainty, but could limit your flexibility if your circumstances change.
And for homeowners approaching renewal, even a modest rate increase could translate into hundreds of dollars in additional monthly payments.
The real question isn't where rates are going next. It's whether your mortgage strategy makes sense if they don't move the way you expect.
A Little Preparation Can Make a Big Difference
The good news is that you don't need to predict interest rates to make a well-informed decision.
Whether you're purchasing, renewing or refinancing, there are practical ways to evaluate your options, manage payment risk and avoid costly mistakes.
The key is understanding which considerations matter most for your particular situation.
Our new guide walks through those decisions in detail, including how to compare mortgage terms, prepare for higher payments, evaluate fixed versus variable options and recognize when waiting could actually work against you.
Before making your next mortgage decision, make sure you understand what you're choosing and why.
Read the Full Guide: Fixed Mortgage Rates Are Rising. What Should You Do? →
Disclaimer: The information in this article is provided for general educational purposes only and does not constitute financial, legal, or tax advice. Readers should consult qualified professionals before making decisions based on this content. View our full Disclaimers & Privacy Policy →
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