Reflecting on “The week’s best fixed and variable mortgage rates”, The Bank of Canada’s recent decision to halt the rate-cutting cycle has resulted in a steady interest rate. This significant development in the financial sector has raised key questions about the duration of this steadiness and the future trajectory of these rates, whether they will drop or rise.

Steady Interest Rates Amid Economic Resilience

Despite the imposition of U.S. tariffs, the Canadian economy has demonstrated great resilience. In response to this, the Bank of Canada (BoC) has elected to maintain its headline interest rate at 2.25 per cent. The bank is confident that the current interest rate will keep inflation under control. The debate among economists is not whether rates will change in the immediate future – most expect them to remain steady for the coming months – but what the direction of the next change will be.

Predictions for Future Rate Changes

Bank of Montreal’s chief economist, Douglas Porter, has expressed his views on the matter. Porter’s predictions are influenced by the uncertainty surrounding U.S. trade. While he believes rate cuts are more likely, he predicts that rates will remain on hold throughout 2026. This will offer some stability for variable-mortgage rates, albeit with possible upward pressure for fixed-rate mortgages due to rising bond yields.

Impact on Mortgage Rates

The Canada five-year bond yield, a major determinant of fixed-mortgage rates, has breached the 3-per-cent mark for the first time in months after a 0.2-per-cent spike earlier this week. This development has already led lenders to slightly raise their rates compared to previous weeks. Currently, the lowest available five-year fixed mortgage on Ratehub.ca sits at 3.89 per cent.

Understanding Mortgages Better

Do you have any questions about mortgages? Are you unsure whether a variable or fixed rate is the best option for you? Perhaps you’re contemplating refinancing, or you’re torn between consulting your bank or a mortgage broker. Submit your questions and Penelope Graham from Ratehub could address it in an upcoming column.

Mortgage rates are sourced from Ratehub.ca, a reputable mortgage-rate comparison marketplace and brokerage. It aids millions of Canadians in comparing and securing the best mortgage rates, credit cards, insurance, deposits, and loan products. Rates displayed are the lowest available for each term/type and category (insured versus uninsured) as of the afternoon of Dec. 11.

Ethan Radcliffe

Ethan Radcliffe is a senior reporter and digital editor at The Toronto Insider, specializing in Canadian federal policy, GTA urban development, and national economic trends. With over a decade of experience in North American journalism, Ethan focuses on translating complex legislative and economic developments into clear, accessible reporting for Canadian readers. Ethan’s work emphasizes policy analysis, government accountability, and data-driven reporting, with a strong focus on how federal and provincial decisions impact communities across the Greater Toronto Area and beyond. He has covered infrastructure planning, housing policy, fiscal strategy, and regulatory changes affecting Canadian households and businesses. A graduate of Toronto Metropolitan University’s School of Journalism, Ethan brings expertise in investigative reporting, long-form analysis, editorial standards, and digital publishing best practices. His reporting is guided by verifiable sources, public records, and transparent sourcing. In addition to reporting, Ethan has experience in newsroom editing, fact-checking workflows, SEO-informed journalism, and audience analytics, ensuring stories meet both editorial integrity standards and modern digital discoverability requirements. Ethan is committed to objective, fact-driven journalism and adheres to established ethical guidelines, prioritizing accuracy, clarity, and public trust in all reporting.

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