Fixed-rate terms make up 62 per cent of mortgages so far in 2025, versus 25 per cent in variable and 9 per cent a combination of the two, CMHC data show.
When the Bank of Canada lowered its benchmark interest rate on Sept. 17, it ended six months of rate stagnation and ushered in a new era of lower borrowing costs for Canadians.
Now, a week and a half out from that quarter-percentage-point rate cut, we’re seeing shifts in consumer demand. Borrowers are increasingly interested in variable mortgages, wondering if the time is right to risk taking on a floating, market-linked interest rate.
Historically, most Canadian borrowers have gravitated towards fixed mortgages, for both the payment predictability and peace of mind. Unlike variable rates, which fluctuate alongside the BoC’s benchmar