In recent weeks, the Bank of Canada’s rate cuts have stirred hope that mortgage rates, especially fixed rates, might begin to fall. However, homeowners and investors should know that fixed rates don’t necessarily follow these central bank cuts.
While it's true that variable rates are on the decline, fixed rates are influenced by different factors and may stay steady or remain near current levels, despite ongoing cuts to the Bank of Canada’s benchmark rate.
Understanding the forces that keep fixed rates steady can help Canadians make more informed mortgage decisions in this evolving market.
