Mortgage Rates

The Current Economic Climate Yes, inflation is rising, but it’s not running away. Even after the release of Statistics Canada’s report on Tuesday, markets still put the odds of a rate cut on October 29 at 82%. It’s a relatively safe bet to say a cut is coming next week, just not a guarantee. Here’s the quick read from leading economists after the data: “One hotter-than-expected month does not a new trend make, but it is worth monitoring whether the strength in price pressur

There’s no shortage of choices when it comes to selecting the right mortgage. Amortization , term length , payment frequency , rate type, and of course, the professional you choose to guide you through it all. It’s the last two that generally require the most thought. When choosing the right professional, most people look at experience, reputation, response time, reviews, and overall professionalism. A better rate doesn’t hurt either. The question of fixed versus variable is

Buying a new home can be an exciting time. Yet, many people are hesitant to take the plunge… especially when both the housing market and mortgage rates are trending downward. Some prefer to wait, hoping rates will drop even further. After all, why buy now if rates could be lower six months from now? And why pay today’s prices when holding off might mean securing a similar property for less?  That’s the trap that many fall into.  The Trap of Waiting for Lower Mortgage Rates L

When rates start drifting down, many hold off on locking in a rate as they’re expecting lower rates to come. I get it. If you’re buying soon or your mortgage renewal is approaching, the idea of squeezing out a bit more savings is pretty appealing. But in the real world, waiting often turns a great deal into a “wish we’d moved sooner” moment. Here’s what we see day-to-day, and how to protect yourself without overthinking it. When the Lowest-Rate Lender Gets Swamped Any time a

About six weeks ago, markets were pricing only a 13% chance of a Bank of Canada cut on September 17. As new data rolled in, that probability kept climbing until a 0.25% move was virtually guaranteed. That’s the thing about forecasts… employment, inflation, and broader economic signals can swing, reports can surprise, and forecasts shift with every new release. No one knows the outcome ahead of time, and even strong odds aren’t guarantees. A day before today’s decision, Statis

After the ugly jobs reports in both the U.S. and Canada on Friday, September 5, the Government of Canada 5-year bond yield plunged… and it’s kept sliding into this week. Yields have generally been retreating since their mid-July peak on the back of softer labour data and cooling inflation, and are now down more than 12%. That drop takes yields to their lowest level since mid-May. At that time, the best 3 and 5-year fixed mortgages were in the high 3% range… right around wher

Forecasts are always shifting as new data rolls in. Earlier in August, signs pointed to another Bank of Canada hold on September 17, the next scheduled announcement. Market-implied odds of a cut were just 13%, suggesting a fourth straight pause. Since then, momentum has flipped: each fresh release has nudged expectations toward a September move, and the probability has climbed steadily. Here are the key data points from the past month that pushed the odds higher: U.S. jobs re

Given all the fixed mortgage rate increases we’ve seen since bond yields began their upward climb back in April, I’m happy to bring some great news!  A major lender has introduced a new 3-year fixed rate promo at 3.69%. However, there are two conditions that need to be met to qualify for the promo rate. The first is that the mortgage needs to be insured. In other words, you’re purchasing with less than 20% down payment and therefore requiring CMHC default insurance. In some s

The July inflation report , released on August 19, came in softer than expected. Headline inflation eased to 1.7% year over year from 1.9%. Economists were looking for 1.8%. Core inflation also surprised on the friendly side. Markets expected an increase from 3.00% to 3.10%, but the annual change rose by only 0.05 percentage points. Not a fireworks show, but enough for a polite golf clap. Promising news overall… but what does this mean for mortgage rates?  Bond yields droppe

A common goal for many homeowners is to become mortgage-free. After all, how good would it feel to eliminate that payment entirely? Prepayment privileges are a proven way to get there faster… by increasing your regular payments or adding lump sums, you can shave years off your amortization and save thousands in interest. However, there is a faster way to reach mortgage freedom. While aggressively using prepayment privileges is a popular strategy , it’s missing one powerful c

After reaching their lowest point in 3 years back in April, bond yields climbed by roughly 32% by mid-July. This resulted in multiple hikes to fixed rates over that period, with some lenders increasing by as much as 0.40%.  Fortunately, bond yields have started to settle back down, with a particularly steep drop on Friday, August 1 st thanks to cooler US employment data released that day.  Only 73,000 new jobs were added, which was a whopping 289,000 fewer than expected. Whe

This morning, the Bank of Canada delivered its fifth scheduled policy announcement of the year, opting to keep its overnight rate unchanged… a decision in line with most analysts’ forecasts.  Strong employment figures and stubbornly elevated inflation have kept the central bank on pause for a third straight meeting. While many economists still anticipate at least one rate cut before the end of 2025, those reductions must await a clear return of inflation to the BoC’s 1–3 perc

With so many choices out there, shopping for a mortgage can feel overwhelming… regardless of how many times you’ve been through it before. Some become overly focused on getting the lowest mortgage rate without even considering if the mortgage even suits their needs to begin with. As it is, choosing a mortgage based on rate alone can be a costly mistake. Let alone, choosing one that may not even suit your needs.  Before even thinking about rate, we first need to determine th

After hitting a three-year low in April, fixed mortgage rates have quietly begun to climb again. While insured rates remain as attractive as 3.79%, and a handful of uninsured options still flirt with the sub-4% threshold, most mortgage lenders have now pushed all their fixed-rate offerings above 4.00%.  What’s Driving Rates Higher? As you’ll continually hear me say, fixed mortgage rates are heavily influenced by bond yields , which have been in an upward trend since early Ap

One of the biggest decisions homebuyers face is whether to go with a fixed or variable mortgage rate. It’s also one of the most common questions we get at PMT. The truth is, there’s no one-size-fits-all answer. Every client comes from a different financial situation, with different goals and risk tolerance. What works for your friend or neighbour may not work for you. In today’s uncertain market, the decision is tougher than usual. While I may recommend a fixed rate for one c

When Mike and Suzanne sat down to look at their finances, the mood was tense. Between raising two small children, juggling careers, and managing the costs of everyday life, their debt had quietly crept up over the years… and it was costing them a small fortune:  Debt Type Balance Owing Interest Rate Monthly Payment Credit Card $20,000 19.99% $333 (interest-only) Car Loan $30,000 6.00% $850 Line of Credit $35,000 9.99% $291 (interest-only) Personal Loan $18,000 8.00% (4 yrs le

Thinking about buying a cottage? There’s nothing like escaping the city for weekends by the lake… campfires, tubing, wakeboarding, fishing, and family memories just steps from your door. Some of my fondest childhood moments were made at the cottage. But before you start your search, it’s important to understand how mortgage financing works for cottage properties, which often differ from typical homes. Type A vs. Type B Cottages: What’s the Difference? The first thing you’ll n

After a streak of seven consecutive rate cuts, the Bank of Canada has hit the pause button… not once, but twice. With the next announcement set for July 30, the mortgage world patiently (or impatiently) awaits. Will the BoC resume its cuts? Will they pause for the third time in a row? Or are we in for a plot twist that no economist saw coming? Let’s break down the latest forecasts from Canada’s Big Six banks… and more importantly, what all of this means for your mortgage stra

Renewing your mortgage might seem simple. Your lender sends you a form, you sign and and send it back. That’s it, you’re done!   We’re all busy and sometimes this seems like the right choice. After all, now it’s out of your hair and you don’t need to worry about it for another 3-5 years.  But this can be a costly mistake.  Here are five key things you MUST consider before locking in that new mortgage term.  1. Are You Ready for Payment Shock? Anyone who took a 5-year fixed mo

In its fourth scheduled announcement of 2025, the Bank of Canada (BoC) has held the overnight lending rate steady for the second time in a row. Many had expected this to be the meeting where rate cuts would resume following April’s pause. But those hopes were dashed after a stronger-than-expected inflation report from Statistics Canada on May 20th. That single report sent bond yields soaring, prompting most lenders to hike their fixed mortgage rates before the week was out.