In a shift that will disappoint prospective homebuyers and those looking to renew, mortgage rates across Canada moved higher this week. The direction was uniformly negative, with key fixed-rate terms seeing notable increases.
Rate Increases Hit Fixed and Hybrid Mortgages
National lenders raised rates on several popular mortgage products. Three-year and five-year uninsured fixed-rate mortgages climbed by five to 15 basis points. Insured three-year fixed rates followed the same upward trend.
Hybrid mortgages, which combine elements of both fixed and variable rates, were not spared. They experienced a 10-basis-point increase, pushing the average rate for these products back above the four percent threshold.
Where to Find Lingering Deals
Despite the broad increase, a handful of competitive offers remained available at the time of reporting. These standout rates provide some relief in a rising market.
Notable bargains included:
- Pine's 4.09 percent five-year fixed rate for uninsured mortgages.
- Alterna Bank's 3.94 percent three-year fixed rate for insured mortgages.
- Coast Capital's 3.94 percent five-year fixed rate for uninsured mortgages.
- Butler Mortgage and RateBuzz offering a 3.39 percent variable insured rate, available only in Alberta, British Columbia, and Ontario.
- True North's 3.99 percent two-year fixed rate for insured mortgages.
Several of Butler Mortgage's other provincially-specific offers also remained among the market's most competitive.
Expect Calm Waters Into the New Year
Mortgage strategist Robert McLister, who authored the analysis, provided context for the movement. He noted that significant mortgage rate fluctuations are uncommon around the Christmas holiday period.
Based on this seasonal trend, McLister forecasts a return to stability. "Barring an unexpected spurt in bond yields, expect calm waters into the new year," he stated. This suggests that unless the bond market, which heavily influences fixed mortgage pricing, experiences a surprise surge, rates may hold steady through the end of December and early January.
McLister is a well-known interest rate analyst and the editor of MortgageLogic.news. His commentary points to a cautious optimism for borrowers hoping to avoid further increases in the immediate future, though the week's moves underscore the market's ongoing sensitivity to broader economic forces.
