TopicMortgages and Interest Rates in Canada
How mortgages work here, and what each rate decision changes for you.
A Canadian mortgage has two moving parts: the rate you sign for and the rules you qualify under. Variable rates follow the Bank of Canada and fixed rates follow the bond market, so the two do not always move together. Moe Asgarian explains how to get, renew or refinance a mortgage, and keeps a dated record of every rate decision.
Mortgage Guides
- How to Get a Mortgage in Canada: A Complete Beginner's Guide
Before you buy a home you need a mortgage, and the jargon trips everyone up. Here are the basics in plain English: down payment, fixed vs variable, amortization, term, and pre-approval.
- Refinancing Your Home in Canada: How It Works and When It Makes Sense
Refinancing lets you replace your mortgage with a bigger one and free up cash. Here is how it works, why people do it, and when it actually pays off.
- Canada's New Mortgage Measures for First-Time Buyers, April 2024
Ottawa's April 2024 measures for first-time buyers: a 30-year amortization on new builds, a bigger RRSP withdrawal, plus spring listings and CMHC's forecast.
- Rates, Debt, and Halal Mortgages: What Canadian Buyers Should Know
Tiff Macklem says rates are not returning to COVID-era lows and cuts will be gradual. Plus household debt near 3 trillion dollars, buyer regret surveys, and how halal mortgages work.
- Renewing Your Mortgage in Canada: 4 Ways to Save Thousands
Your renewal rate is negotiable, and a few smart moves can keep it from costing you thousands. Here are four things to check before you sign.
- Higher Mortgage Cap and Relief for First Time Buyers
Canada announced two mortgage changes: a higher cap on insured mortgages and a longer amortization for first time buyers. Here is what they mean for you.
- Canada's New Secondary Suite Loan: What It Means for Homeowners
Moe Asgarian breaks down Canada's new insured refinance program letting homeowners borrow up to 90% of their home's value to build secondary suites, plus a coming change to the stress test.
- Fixed or Variable? Your 2025 Mortgage Guide in a Tariff-Rattled Market
With Canada-US tariff threats shaking rates, my advice for early 2025 is clear: for most borrowers, a variable-rate mortgage is the smarter call.
- New Year, New Mortgage Rates: What Renewal Really Costs You
Mortgage renewals are the talk of the season. Here is what happens to your payment when you move from a 2% rate to today's 3.5% to 4%, with real numbers on an $800,000 loan.
- Trump's 50-Year Mortgage and What It Means for Canada
A US plan for 50-year mortgages has Canadians asking if the same could happen here. Here is the real cost, why Canada's banks work differently, and what history tells us.
Bank of Canada Rate Decisions
- The Bank of Canada Held Its Rate: What That Means for You
The Bank of Canada held its rate at 2.25% to close out 2025. Here is why it happened, what it means for borrowers, and my forecast for 2026.
- Three Rate Cuts in a Row: What It Means for Toronto Housing
The Bank of Canada's third straight cut brings the key rate to 4.25%. Here is what it means for your mortgage and the Toronto market.
- The Bank of Canada Held Rates. Fixed or Variable Now?
The Bank of Canada held its rate at 2.75 percent. Here is what a held rate means for your mortgage, why fixed works like insurance, and what renewals could cost.
- Canada Just Cut Interest Rates. What Happens Now?
The Bank of Canada cut its benchmark rate from 5 to 4.75 percent, the first cut in four years. Here is what it means for buyers, sellers, and the fixed versus variable question.
Frequently asked questions
Why do fixed mortgage rates not always drop when the Bank of Canada cuts?
Because they follow different things. A Bank of Canada cut moves the prime rate, so variable mortgages respond right away. Fixed rates are priced off government bond yields, which move on what investors expect to happen next. A cut the market already expected can leave fixed rates exactly where they were.
Should I choose a fixed or a variable mortgage?
It depends on how much a rising payment would hurt you. Fixed buys you certainty for the term. Variable usually costs less to break and moves with the Bank of Canada, in both directions. Talk it through with a mortgage professional using your own numbers, not the headline of the week.
What should I do before my mortgage comes up for renewal?
Start a few months early. Your current lender's renewal letter is an opening offer, not the best one you can get. Compare it with other lenders, check whether your plans for the home have changed, and decide on the term before the deadline forces the decision for you.
Talk it through with Moe
Tell us what you are weighing up and get straight, no-pressure advice, in English or Farsi.
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