Mortgage & Wealth Strategies

Mortgage Rate Pressure Is Back—Here's How to Stay Ahead

July 14, 2025 | Posted by: Matt Broom-Hall

Canada’s Fixed Rates Are Climbing—Here’s What It Means for You. 
After months of mortgage rate 'will-they-won’t-they,' we finally saw movement last week—and not the kind buyers were hoping for. Fixed mortgage rates across Canada are starting to climb again, and if you’re in the market this summer, this is the moment to start paying close attention.

Let’s unpack what’s going on and help you make sense of your best next steps.
So, why the bump in fixed rates? It all comes down to bond yields. Rates on fixed-term mortgages are closely tied to government bond pricing, and last week, those yields pushed upward thanks to stronger-than-expected economic data. In Canada, we saw an impressive headline job gain for June (over 83,000 new positions), but dig a little deeper and it’s clear that 70,000 of those were part-time gigs. That’s not exactly a sign of relentless economic momentum. Still, the markets focused on the top-line number—and rates responded.

South of the border, a similar story unfolded. U.S. bond yields also rose, driven by economic resilience and shifting expectations on when their central bank might finally start easing policy. And as U.S. yields go, so often go ours. So lenders here at home began quietly nudging up fixed rates.

For now, the Bank of Canada has stuck to its wait-and-watch approach. There's a lot riding on upcoming inflation data (due shortly) and any surprises there could shift their plans. But remember—central bank decisions directly affect variable rates, not fixed ones. Those are already being shaped by market momentum.

So how do you play this?
As of today, 3- and 5-year fixed mortgage rates are sitting at roughly the same level. That’s unusual—typically, longer terms cost more. Given that, many experts argue the 5-year fixed currently offers better long-run value, especially if you’re looking for payment consistency through this stretch of inflation uncertainty.

On the flip side, variable-rate mortgages remain attractive on paper, particularly if the Bank of Canada begins rate cuts again later this year. But the key here is personal financial flexibility. If you opt for a variable, make sure your budget can handle payment fluctuations.

The takeaway? This market isn’t slowing down yet—and neither are rates. That means timing really does matter right now.

What Does This Mean for You?
If you’re a buyer: Don’t assume rates will stay this high forever—but in the short-term, expect pressure. Lock in a pre-approval while rates are still relatively low to protect your buying power.

If you’re a homeowner with a renewal coming up: It may be time to look at early renewal options. Some lenders will let you lock in a new term up to 120–180 days out—especially valuable if rates keep climbing.

If you’re refinancing for renovations or debt consolidation: There’s still room to secure great value, especially if you’re strategic about which term and mortgage structure to choose.


Tip of the Week:
Fixed rates might be rising, but your options aren’t shrinking—just changing. The key is to act before the market fully adjusts. Don't wait for the headlines to say “ouch”—connect early and plan smart.

As always, strategy beats speculation.

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