What to expect for mortgage rates in 2026 to 2030

What's Next for Rates? Dan's Take

The next Bank of Canada rate decision is coming up — and Dan's watching the signs that could point to another cut, a hold, or a shift in tone. Here's what he's seeing right now.

Will the next Bank of Canada move be a cut or a hike?

The Bank of Canada’s (BoC's) policy rate, also called the overnight rate, affects bank prime rates, which in turn move variable mortgage rates. Fixed mortgage rates follow the bond market, which can move to anticipate changes to the prime rate.

The potential for rate hikes is back on the table, as a side dish that often accompanies higher oil prices — we're already seeing gas and airline ticket prices rise as the military action in Iran reverberates through markets.

Only a few days ago, talk of hikes had all but faded from the rate-forecast conversation amid meagre Canadian economic growth projections for 2026 and ongoing comments from the U.S. administration about more tariffs on more goods coming with the CUSMA review this spring.

If the situation in Iran resolves quickly, markets may recover within a few weeks, and fixed mortgage rates would likely lower accordingly. However, higher oil prices for an extended period will seep into other goods and add to a pancake stack of existing inflationary pressures, such as ongoing tariffs, resilient-enough domestic consumer demand (so far), potential supply shocks from a U.S. trade review this spring, government spending and debt, and bond market volatility.

Rates and the economy are normally difficult to predict, but throw in rotating geopolitical conflicts and U.S. trade upheaval, and it's like trying to both find and set the table in the dark.

Amid the volatility, it may still be a while before the Bank of Canada has the right menu to decide whether to order a rate hike or cut.

Here's why interest rates may be on hold for a while:

1. Inflation is a persistent concern, and the Iran conflict adds more risk. Despite the January headline and core inflation showing signs of moderation, too many inflation pressures remain within arm's reach, and now you can add oil price volatility to the mix. If you recall what we went through (skyrocketing rates) to get inflation back to target from 8.1% (reached in June 2022), the BoC is cautious about bringing rates too low through this period of uncertainty — on the heels of aggressive policy rate hikes following the pandemic, then aggressive cuts once inflation cooled.
   
2. A higher unemployment rate may mitigate inflationary risks. Canada's February 2026 labour report highlights the broader impact of U.S. tariffs already in effect outside of CUSMA. The systemic effect of rising job losses often translates into lower consumer demand and price-pressure relief in CPI baskets not directly tied to energy price fluctuations.
   
3. Domestic demand has been sticky. The Q4 2025 GDP contraction was primarily due to the hit to export volume, but underlying domestic demand showed resilience — the same resilience that kept Canada out of a recession in 2025. The recent BoC rate cuts may be behind the lift in consumer spending heading into 2026, and the BoC is wary of whether suddenly calmer conditions could unleash pent-up demand.
   
4. The BoC has indicated that it can only go so far in supporting an economy dealing with trade rebalancing. Lower rates can help businesses and individuals access cheaper debt to stay afloat or even invest — but that stimulus has its limits. Establishing new trade and business relationships, investing in infrastructure, reducing taxes, creating national versus provincial standards, and deregulating in areas to increase output can be more effective means of mitigating the economic downturn. Those structural initiatives will require increased government spending (not to mention time), which is inflationary in the near term and can work against rate cuts.
   
5. Uncertainty over U.S. trade and relations. It's unlikely that Canadian exports will see a status quo outcome for the upcoming CUSMA (Canada-U.S.-Mexico trade agreement) review, and many are bracing for a different trade reality this time around. Until that reality crystallizes, holding rates steady reflects a long-standing policy principle: stay measured when uncertainty is high.

Dire consequences were envisioned when President Trump first threatened U.S. tariffs back in January 2025. Despite some consolation that the worst hasn't yet happened, there's no mistaking the impact already felt here in Canada, with plenty of nervousness about what may be on the horizon.

It's not all doom and gloom — interest rates are lower than last year. Many Canadians could eventually see more relief on their payments and renewal rates (now much lower than projected a year ago), as well as improved home affordability (if national home prices remain stable).

Job creation, improved consumer confidence, and increased business growth and investment could all eventually result from a BoC policy rate that now sits at the bottom of its neutral range.

Will the BoC cut its rate at its next decision coming on March 18, 2026?

Courtesy of BankofCanadaodds.com, March 13, 2026:

• 25 bps cut: 0% market odds
• No change: 100% market odds

*60% is considered the magic number in calling the rate-decision odds

Stay tuned!

Cut, pause, or hike? How the latest economic readings predict where rates may go next.

We break down key factors, such as inflation, jobs, and GDP, and what they currently signal for future rate moves. Want an even deeper dive into the factors? Click here

• INFLATION (MOST IMPORTANT FACTOR) – PAUSE
  January 2026's CPI (Canadian Price Index) report came in a notch below expectations at 2.3% (prior reading was 2.4%), though it still looks 'better' due to last year's GST break on prices (until Feb 15), and the carbon tax withdrawal in April, with energy prices stripped out, inflation rose to 3.2%, while core inflation (the average of the median and trimmed measures) eased to 2.5% from last month's 2.6%. In 2025, inflation averaged 2.1%, well within the BoC's target range; overall, the numbers aren't pushing rate hike pressure for now (next reading Mar 16)
  
• LABOUR MARKET – PAUSE
  Canada's February 2026 labour market report did not leave a good impression, with a 0.2% rise in the unemployment rate to 6.7% (from last month's 6.5%) and an almost 83K lob loss, primary full-time jobs in the private market; economists had expected a flat UR rate and +10K jobs — and the weakening is especially notable considering our shrinking population due to immigration restrictions (next reading Apr 10)
  
• WAGES – SHAKEY PAUSE
  February's average wage growth increased substantially from 3.3% from last month to 4.2%, a warning sign for inflation watchers (next reading Apr 10)
  
• ECONOMIC GROWTH – SHAKEY PAUSE
  December 2025 real GDP rose 0.2% after a flat November, but Q4 2025 contracted by 0.1% following a 0.6% expansion in Q3; January GDP is looking flat — 2025 clocks in at a 1.6% real GDP growth, the slowest pace in 5 years due to curtailed exports (Jan reading on Mar 31)
  
• BOND YIELD MARKET – PAUSE
  The Canadian 5-year bond yield has pushed to the 3.0% range as oil supply remains choked up in the Strait of Hormuz amid the U.S-induced Iran conflict, and as oil prices push near $100/barrel — markets barely registered Canada's weaker labour report for February; expect ongoing bond market volatility in a tight range as Canada waits on trade developments, and amid market reactions to emerging national and global factors

What's the most important economic factor the Bank of Canada considers? The BoC's sole mandate is to control inflation. It uses its policy interest rate (which directly influences bank prime rates) to keep headline inflation close to its 2.0% target and core inflation within the 1.0%-3.0% range.

Other key economic factors can help the BoC determine the path of inflation, whether it's likely to rise or fall.

For example, rising unemployment and slow GDP growth may call for a rate cut to stimulate the economy. However, rising inflation may indicate the need to pause or raise rates to curb demand and keep inflation in check.

What economists predict for interest rates (2026-2030)

While Dan's outlook is shaped by experience, client feedback, and lender decision points in addition to real-time trends, he also closely watches the forecasts of several economists:

• National Bank expects the Bank of Canada policy rate to remain at 2.25% through 2026, rise to 2.50% in Q1 2027, and then again to 2.75% in Q2 2027 and remain at that level through 2027.
• TD Economics expects the BoC to keep its policy rate at an average of 2.25% through to at least 2031.
• Scotiabank now forecasts the BoC will hold at 2.25% for the first few months of 2026, then rise to 2.75% by the end of 2026, and then rise to 3.0% by the end of 2027, while warning that tariff‑related uncertainty may delay or reset this path.
• CIBC Economics predicts the BoC policy rate will remain at 2.25% until the end of 2026.
• RBC expects the BoC rate to remain at 2.25% until the end of 2026, rising to 3.25% by the end of 2027.
• BMO Capital Markets has forecast the BoC rate to remain at 2.25% through 2026 and 2027.
• Desjardins expects the BoC to hold its policy rate through 2026, with a hike in Q3 2027 to 2.5% and another hike in Q4 2027 to 2.75% (still in the neutral range).
• Capital Economics predicts the BoC policy rate of 2.25% will hold through 2026, until more clarity on CUSMA negotiations is understood.
• Oxford Economics predicts that the BoC rate will hold at 2.25% through 2026.

Please note: The above rate forecasts are subject to change.

Most expert rate predictions are based on a favourable resolution to renegotiate CUSMA; trade uncertainty is the wild card in forecasting how the economy and interest rates will be affected. Potential rate hikes, rather than cuts, have been incorporated into some long-range forecasts.

Will rates rise or fall this year? Dan's closer look. 

Trade uncertainty has pushed rates lower — but there's not much runway left.

"The U.S. trade war has brought immediate changes for Canadian businesses, and when rules change that quickly, the response or counteractions take time, even years." – Dan Eisner, True North CEO

Today, the prime rate sits around 4.45%, based on the current BoC policy rate of 2.25%. The latter is about one policy rate cut lower than I had predicted in mid-2025.

With recent economic indicators showing moderate strength relative to U.S. trade disruptions (despite some hard-hit sectors, such as steel and aluminum), the BoC policy rate has little room to fall below current levels until there's more clarity on how the U.S. trade agreement review will resolve.

The overnight benchmark rate (aka the BoC rate) has declined by 2.75% since June 2024. There is likely sufficient economic resilience, combined with government support in the form of support packages and infrastructure spending, along with inflationary pressures (which government support will exacerbate), to prevent rates from hitting rock bottom.

Add in U.S. geopolitical provocation that could impact oil prices and inflation risk, and the conditions to lower the policy rate are much more restrictive.

Dan's rate prediction for 2026.

I expect the Bank of Canada's policy rate to remain at 2.25% for the next few months.

When tariffs entered the scene earlier this year, some rapid-fire forecasts predicted a drop to 1.5% on the policy rate and a prime rate of around 3.70%. Never say never — those forecasts could still play out.

However, with another 0.50% rate drop this fall, the BoC has turned hawkish, indicating that it prefers its 'neutral' rate to work through the economy; it takes 12 to 18 months for the effects of a rate change to fully materialize.

The risk is cutting too far now and overshooting the runway, injecting stimulus that increases demand too quickly, resulting in undersupply, and putting inflation back on a path to take off again.

Another cut (to 2.0%, which would place most bank prime rates at 4.20%) becomes more likely only if trade talks stall, CUSMA gives way to broader tariffs on more goods, and Canada's economy enters a recession. (Or, less probable but still in the realm of possibility, if the global economy takes a sudden downturn due to geopolitical events, the knock-on effects of spiralling U.S. debt, or an AI stock collapse.)

As always, my forecast may change when (if?) the trade clouds part and the trajectory becomes clearer.

What is the BoC's current neutral rate range?

The Bank of Canada's published neutral rate range, which estimates the rate position that neither stimulates nor constrains economic activity, is 2.25% to 3.25%.

The BoC rate is now at the low end of that range, and the central bank may decide to dip its interest-rate vehicle into stimulative territory or raise it to curb conditions that could push inflation higher.

If the economy shows greater weakness than expected, even a rate in the neutral range can feel restrictive, which is why the BoC frames its policy stance as either supportive or restrictive.

Is there a danger that the prime rate could increase?

There's always the risk that bank prime rates (led by the BoC policy rate) could rise to counter inflation. However, both the economic softening from tariffs and trade disruptions and recent moderate inflation readings make it unlikely for at least the first few months of 2026.

What about fixed mortgage rates?

Note that bond yields, which inform fixed rates, are affected by a mix of forces.

In the short term, political and economic volatility can cause yields and fixed rates to fluctuate in response to emerging data or global instability. If another interest rate cut is anticipated, expect yields and fixed rates to trend down ahead of a move, or to trend up if a rate hike is expected.

Under current conditions, fixed mortgage rates are likely to fluctuate within a narrow range between interest rate announcements, having already decreased relative to the current prime rate. Read the Fixed Rate section, plus view forecasts for 2026 to 2030.

Let's dive deeper into the latest economic numbers.

Why is Canada's inflation lower in January 2026?

In Canada's latest CPI (Consumer Price Index) report, headline inflation in January declined to 2.3% from 2.4%, though skewed by significant base-year effects (last year's GST break ending February 15, 2025 and carbon tax removal in April), which helps the current inflation reading to look lower than it is.

January's headline drop was largely due to lower gas prices (again), but was also held higher (again) by groceries (4.8%), and other entertainment items that might distract us from negative news, such as toys, restaurants, and alcohol. According to the latest data, restaurant prices are up over 12% since last year, and grocery prices are up 7.3% — making Canada the 'Food Inflation Capital' of the G7.

Stripping out the volatile energy component, the remaining CPI baskets rose to 3.2%. However, core inflation (the average of the median and trimmed measures) fell to 2.5% from last month's 2.6%, indicating that inflation is moderating, at least until the current base-year effects age out.

This latest inflation report underscores the Bank of Canada's estimate that inflation will likely remain within target (or near target), despite current perceived risks and trade instability.

Economic drag from trade disruptions and a soft economy should help offset other price pressures, possibly allowing the BoC to leave its policy rate unchanged as the Fall 2025 rate cuts work through the economy.

At the very least, this report likely eases the pressure to implement a near-term rate hike.

Is Canada's labour market weakening in early 2026?

The February 2026 labour market data revealed a more dismal view of the economy, with the unemployment rate rising from last month's 6.5% to 6.7%, with almost 84K job losses, primarily in the private, full-time sectors, despite increased public (government) layoffs.

The numbers are apparently "one of the worst (non-pandemic) months ever for jobs," according to BMO chief economist Douglas Porter (as quoted in this Financial Post article). The losses were broad-based, affecting most sectors — not confined to those directly impacted by U.S. tariffs and trade disruption.

With wage inflation also up to 4.2% from 3.3%, it suggests employers are paying more and employing less, and trimming staffing to essential levels.

The jobs decline is especially concerning, considering Canada's declining population growth. In Q3 2025, Canada logged its "steepest population decline on record ... mainly the result of a significant decline in non-permanent residents" (CTV News, January 27, 2026).

Lower immigration targets, which could bring population growth to near zero in 2026 and 2027, can help 'improve' labour numbers — which definitely didn't happen this month, except perhaps to make the dismal result look less worse than it could have.

A weaker economy can lead to weakened consumer demand, which could alleviate some price pressures. This labour development will help push back against the sudden inflationary risks (and renewed rate-hike forecasts) posed by higher oil prices due to the Iran conflict.

How is Canada's economic growth being affected by trade disruption?

Real GDP contracted by 0.1% in Q4 2025. Overall, Canada's GDP in 2025 grew by a meagre 1.6%. 

That number tracks with the Bank of Canada's growth forecast for last year, but is also the slowest pace in 5 years, primarily due to reduced U.S. exports (stating the obvious here).

The news isn't all like watching paint dry — government stimulus and private domestic demand propped up the numbers in the Q4, showing a bit of underlying strength, and holding the Bank of Canada back from pulling the rate-plunge lever.

Here's a look at quarterly 2025 GDP (quarter over quarter and annualized pace), reflecting the rollercoaster ride of U.S. trade turmoil since January 2025:

• Q1 2025: +0.5% real, +2.1% annualized
• Q2 2025: -0.2% real, -0.9% annualized
• Q3 2025: +0.6% real, +2.4% annualized
• Q4 2025: -0.2% real, +0.6% annualized

Also, Statistics Canada recently revised its GDP data for 2022 to 2024, saying the economy expanded by 1.7% more than thought for those three years.

Is the threat of a recession hanging over Canada in 2026?

The Bank of Canada has projected real GDP economic growth of 1.1% for 2026. Growth is better than a contraction, but that level isn't something to get excited about. And its forecast excludes a worst-case trade scenario.

With the potential for U.S. trade disruption to drag more sectors, how much would it take for another quarter of contraction to appear? Right now, that's a rhetorical question. But GST relief, government stimulus, and infrastructure and trade initiatives are hoped to help prop Canada's economy as 2026 marches on.

Regardless, last year's up-and-down GDP readings reinforce the Bank of Canada's caution in holding its rate for a time, as it seeks concrete and sustained indications of weakening or strengthening before making another rate cut or hike decision this year.

How is economic volatility affecting Canada's housing market in late 2025?

National housing sales and home price averages declined again in December 2025, with year-over-year sales down by 2.7% and the MLS®HPI composite benchmark price by 4.0% (not seasonally adjusted). In 2025, the composite benchmark price declined by 2.7% compared to 2024.

Many buyers and sellers remained on the sidelines during a turbulent economic and political year. Some are expected to come off the sidelines, perhaps out of necessity or simply because more deals are available in markets that are usually higher-priced, such as those in Greater Toronto and Greater Vancouver. Others may be buying before demand picks up in lower-priced, higher-value markets, such as those in Manitoba and Saskatchewan.

With mortgage rate levels considered non-restrictive (having declined significantly over the past two years), housing analysts expect a more robust Spring 2026 buying season than last year. However, ongoing economic and trade uncertainty, along with moderate inflation, may weigh on households and continue to inhibit markets until a more sustained recovery builds in 2027.

Read more here: Housing Market Forecast (2025-2029)

How is the U.S. economy influencing Canada's interest rate outlook?

Like it or not, our countries' economies are closely linked.

With a Trump presidency, here are some current concerns:

• Geopolitical developments due to recent U.S. maneuvers and demands could damage the global economy or raise oil prices.
• U.S. data sources, under political pressure, are giving some economists reason for concern that they're offering an unbiased read of the U.S. economy.
• U.S. trade policies are causing supply and demand shocks, leading to price hikes that are slowly being passed on to consumers in both countries.
• Trade disruptions and higher U.S. tariffs on certain Canadian imports are injecting significant uncertainty for Canadian companies and consumers, interrupting planning, hiring, investment, and spending decisions.
• Immigration issues between the two countries may further diminish our labour productivity.
• The interest rate differential between the two central banks is 2.0%, which is pressuring input prices.
• Proposed U.S. taxes (section 899 of the One Big Beautiful Bill Act) on Canadian investments and companies could have a significant impact on our economy.
• Markets are nervous about the decline of the U.S. dollar, which "can also make investing in Canada less attractive if (the Canadian dollar) is less undervalued." (Financial Post, Jan. 29, 2026)
• U.S. government debt is ballooning — current U.S. debt interest payments exceed the defence budget — and tariff revenue is $100B less than expected so far.

When will fixed rates drop?

Fixed mortgage rates are steered by the Canadian bond market and (eventually) follow the movements in bond yields up or down. 5-year bond yields are the standard for setting 5-year fixed rates and are the reference in this section and blog.

Oil price uncertainty may see a rollercoaster for fixed rates in the next while.

Canada's 5-year bond yield has risen to the 3.0% range (from 2.6% not long ago) as the Iran conflict continues, and oil prices have risen — one-fifth of the world's oil travels through the Strait of Hormuz, which has been choked off for the time being.

The pressure on yields is being driven by recent geopolitical unpredictability, U.S.-Canada trade uncertainty, Canadian government stimulus in support of trade-related sectors, reports of ballooning U.S. debt, overstatement of the revenue the U.S. is collecting from tariffs, and the increasing U.S. trade deficit (exporting less and importing more despite imposing tariffs to promote the opposite effect).

On the moderation side, pushing back against inflationary pressures raising yields, are Canada's prospects for a weaker economy — evidenced by tepid economic growth, weaker labour numbers, tempered inflation readings, and a(nother) gloomy Canada Business Outlook report 

For now, oil price volatility has been injected into the volatility equation. Along with the unknowns surrounding an upcoming trade review with the U.S., bond traders and investors are looking at a big question mark.

With no Bank of Canada rate cut in the immediate future, yields are unlikely to enter a sustained downward trend unless signs of deeper economic softening gain momentum — or oil prices ease.

Will fixed mortgage rates keep rising?

The 5-year fixed mortgage rate has increased by about 0.25% due to the rapid rise in oil prices and heightened inflation risk that has spooked bond investors. Higher yields may be sustained if oil supply volatility persists, potentially leading to higher fixed rates. However, if the Iran conflict resolves quickly, oil prices may decline and eventually take fixed rates with them.

Lender margins remain tight amid recent economic and global volatility, keeping markets in the uncomfortable 'reactionary' zone. Mortgage rate deals may emerge depending on prevailing bond-yield conditions.

It's likely to be a tight rollercoaster for the next while, or at least until we see some clarity on geopolitical activity and U.S. trade.

Can the U.S. economy affect rate hikes here?

Yes. The U.S. economy matters for Canadian rate decisions.

Why it matters, briefly:

• Trade and prices. Strong U.S. demand and tariffs can change import and export prices here, which feeds into Canada's inflation readings.
• Policy and capital flows. If the U.S. Federal Reserve loosens monetary policy while the Bank of Canada holds, capital may shift toward Canadian assets, pushing yields lower and weakening the loonie, which can raise import inflation.
• Market spillovers. U.S. growth, fiscal moves, or political uncertainty can change global bond yields and risk premiums, and these moves can show up in Canadian fixed mortgage rates.

Bottom line: A hotter U.S. economy, or U.S. Fed policy rate tightening, tends to push Canadian yields and rates up, while a U.S. slowdown can make it easier for the Bank of Canada to cut its benchmark interest rate.

Will Canada see a recession?

Canada's economy in 2025 avoided a technical recession, walking the line to eke out 1.6% growth for the year.

Following the sudden U.S. trade disruption beginning in early 2025, a mild recession was forecast for the second half of 2025, which didn't materialize.

Will market resilience keep Canada out of recessionary territory? Despite demand resilience through 2025, Canada isn't out of the recessionary woods until we have more clarity on how the CUSMA (Canada-U.S.-Mexico Agreement) review will play out. Whatever the fallout, it's hoped that Canadian businesses will adapt and that consumers will have sufficient financial resilience to weather the trade storm.

Keep in mind that a recession can hit Canadians the hardest in the sectors most affected by trade disruption – and whether the country is skirting the line between contraction and growth won't matter to them if they've lost their job.

To counteract the trade chaos, Canadian initiatives are already underway to mitigate the ongoing impact — including reducing inter-provincial trade barriers, investing in energy and production infrastructure, reviewing restrictive government regulations that hinder productivity, and expanding international trade opportunities. Will it be enough? Only time will tell.

A recession would bring mortgage rates down faster.

If economic weakness accelerates, the BoC would likely lower its policy rate further (assuming that job losses and spending pullbacks would place downward pressure on inflation), providing more budget relief when we'll likely need it most.

Is stagflation a possible economic outcome?

Stagflation, an entrenched state of high inflation coupled with a weak economy and high unemployment, is on everyone's radar. The conditions for stagflation don't currently exist because our inflation pace isn't high enough, having decreased to around 2% from over 8%, and our unemployment rate is still well below 8%.

Conditions could change if inflation runs higher while the economy weakens, and lower interest rates aren't supporting enough (or fast enough) rebound spending.

Is mortgage activity picking up in early 2026?

Home affordability has improved slightly in 2026 due to lower interest rates and cooling home prices in some Canadian centres.

However, the recent Bank of Canada rate cuts haven't sparked renewed activity as the new year progresses — though experts are still projecting a better spring market when temperatures warm, and home buying typically heats up.

After months of waiting for clarity on the U.S. trade disruption and its impact on interest rates, many Canadians have been hesitant to enter the market, despite an increase in listings in several centres nationwide.

Those who need to buy in the normal course are chasing mortgage-rate and home-price deals amid subdued local market competition (regionally specific).

Current mortgage activity is primarily driven by homeowners renewing — over 1M households are expected to renew in 2026. In 2025, here at True North, we saw a 67% increase in homeowners renewing compared to the year before. Some of those renewals are coming from lower mortgage rates secured during the pandemic, and they're looking for their best rate and mortgage solution to reduce the impact on their monthly payments.

A recent Equifax report shows that over 28% of homeowners are switching to a better deal at renewal, up about 46% from a year ago (according to a Mortgage Professionals Canada survey).

Ongoing U.S. trade and geopolitical uncertainty continues into 2026, and expectations for an improved Spring 2026 housing market compared to last year will depend heavily on how Canadian households view their financial prospects.

Read more in our Housing Market Forecast 2025-2029

Dan's mortgage rate advice for 2026?

Use an expert broker to get your best rate and mortgage — if you really want to save more.

Whether rates are falling or rising, your best rate and mortgage can help you better afford your home. Many Canadians are still unaware that they don't have to stick with their bank for a mortgage, purchase, renewal, or refinance.

• Shop around. You don't have to get a mortgage with your bank — and doing so may result in paying a higher rate.
• Use an expert broker, preferably a highly trained, salaried, non-commissioned True North broker. You'll get expert, unbiased advice (in your preferred language) from a broker who puts you first.
• Hold your rate. Hold or lock in your rate with us to protect your budget from rate increases while you make home-buying or mortgage decisions.

First-time home buyers, especially, need expert advice to set them on a path to successful homeownership amid all these price pressures.

Prime rates may not have much more room to decline, but a variable rate can still offer savings.

A 5-year variable rate is currently lower than most fixed mortgage rates. However, with prime rates likely on hold for the next few months, some homeowners may not want to stomach the risk if they think variable rates will rise again during their term.

A variable-rate mortgage offers more flexibility for watching the market — and you can typically change to a fixed-rate term penalty-free if you get nervous about where rates may be headed (check with your lender).

Recently, we've seen many of our clients choose a variable rate or a short-term fixed rate, such as a 2- or 3-year fixed rate, more often than the popular 5-year fixed rate.

If our unique 6-month fixed Rate Relief™ product is right for you, it can help you bridge the gap with budget relief now, giving you time to consider a longer commitment later.

Trying to time your decision? Keep in mind that fixed rates will remain volatile within a tight range amid trade uncertainty, rising or falling in tandem with the bond yield market. And variable-rate discounts off prime may change. Ask your expert True North broker about holding your rate while you decide.

Owning a home is a tremendous source of pride in Canada. I created True North Mortgage to deliver a better mortgage experience and save clients thousands by securing their best possible rate along with a more flexible mortgage for long-term savings.

Have questions about your mortgage or pre-approval? Give us a shout, anywhere you are in Canada. We have your best rate, expert advice and unbeatable service — with over 17,000 5-star reviews from our happy clients.