Mortgage Rate Stability Through Year-End
Canadian homeowners and prospective buyers can expect mortgage rates to remain relatively unchanged for the remainder of the year, according to expert analysis. Robert McLister, a prominent mortgage strategist, indicates that barring any unexpected economic surprises, rates should stay flat or experience slight declines through December.
The current environment finds mortgage rates cruising somewhere between flat and gently descending, creating a unique window for borrowers considering their options. This stability, combined with slightly improved pricing and discussions about the Bank of Canada pausing further rate cuts, has shifted borrower preferences toward shorter-term solutions.
Shifting Borrower Preferences
With the expectation of limited movement in either direction, Canadian borrowers are increasingly opting for three-year fixed and variable rate mortgages over the traditional five-year fixed term. This strategic shift reflects the market's anticipation that significant rate changes won't occur until after the New Year.
The success of short-term or variable rate strategies partially depends on the resolution of trade disputes between Canada and the United States. Clarity on this front isn't expected until at least next year, leaving business investment in Canada constrained by ongoing uncertainty in the meantime.
Current Rate Landscape and Special Offers
Recent rate sheets show several notable adjustments from national lenders. For default-insured mortgages, True North Mortgage reduced its two-year fixed rate by 40 basis points to 3.59%, while Citadel Mortgage cut its four-year fixed by 10 basis points to 3.89%. True North's two-year offer represents a Black Friday special and currently holds the title of the lowest advertised fixed rate in Canada.
Uninsured mortgages also saw reductions:
- Three-year fixed fell five basis points to 3.79% at Citadel Mortgage
- Four-year fixed fell five basis points to 3.99% at Citadel Mortgage
Regional providers are offering competitive deals as well. Coast Capital Savings in British Columbia now features the lowest advertised uninsured five-year fixed rate at 3.94%. Meanwhile, Ratebuzz boasts Canada's lowest insured variable rate at 3.39%.
In the reverse mortgage sector, Bloom Financial's new 6.69% rate, guaranteed for life, is generating strong interest since it sits only slightly above standard five-year rates.
McLister emphasizes that bond yields should remain flat to lower through year-end unless unexpected growth or inflation developments occur. This outlook suggests borrowers shouldn't anticipate significant mortgage rate movements in either direction until 2026.
