The Bank of Canada recently held its policy rate at 2.25%, marking its seventh consecutive hold. The next rate announcement is scheduled for October 28.

For now, variable mortgage rates remain relatively attractive. Depending on the borrower, down payment, amortization, and mortgage product, variable rates are currently in the range of approximately 3.50% to 3.75%.

Fixed rates are a different story.

Three-year fixed mortgage rates are currently around 4.19%, while five-year fixed rates are roughly 4.29% to 4.39%. Some lenders have already announced additional increases.

The reason is largely the bond market. Fixed mortgage rates are influenced heavily by bond yields, and those yields have moved higher in response to inflation, energy prices, tariffs, and geopolitical uncertainty.

That means mortgage rates can increase even when the Bank of Canada leaves its rate unchanged.

Why Getting a Rate Hold Now Makes Sense

If you are thinking about buying a home, refinancing, or renewing your mortgage in the next few months, this may be a good time to secure a rate hold.

A rate hold does not mean you are committing to a mortgage today. It simply protects you if rates move higher while you are looking for a property or deciding what you want to do.

Depending on the lender and mortgage product, rates can often be held for up to 120 days.

If rates rise during that period, you have some protection. If rates improve, your mortgage broker can usually look at the better options available at that time.

In a market where rates are beginning to move, having that protection can be valuable.

Variable vs. Fixed Rates

There is currently a fairly significant spread between variable and fixed mortgage rates.

Variable rates are lower, but they come with the risk that payments or interest costs could increase if the Bank of Canada raises rates in the future.

Fixed rates provide more certainty, but borrowers are currently paying a premium for that certainty.

There is no single mortgage option that works for everyone. The right choice depends on your financial situation, how long you expect to own the property, your tolerance for changing rates, and the specific mortgage terms being offered.

Thinking About Buying or Making a Move?

If you are considering buying a home in the coming months, I would recommend getting your financing reviewed and securing a rate hold sooner rather than later.

We have access to some of the top mortgage brokers in the business and would be happy to connect you with someone who can review your options, explain the difference between fixed and variable rates, and secure a rate hold for you.

There is no obligation. It simply gives you more information and some protection if mortgage rates continue to rise.

If you would like an introduction, reach out anytime.