Canadian Mortgage Rates: What to Expect in the Coming Years

Fixed Rates on the Rise

Fixed rates are currently hovering in the high 4s for 5-year terms. According to the Fed rate monitor, this trend is expected to continue in the near future.

Rising House Prices and Mortgage Debt

In many markets, particularly the Greater Toronto Area (GTA), house prices have skyrocketed in recent years. This has led to a surge in mortgage debt among homeowners.

Inflation and Mortgage Rate Expectations

As Canadian inflation continues to rise, expectations for mortgage rates are also increasing. The Bank of Canada (BoC) has signaled that it will begin raising interest rates to combat inflation.

Long-Term Rate Predictions

While predicting future mortgage rates is challenging, experts suggest that the BoC rate may reach around 5% fixed in the next 2-3 years.

Advice for Homeowners

Homeowners should be aware of the potential for rising mortgage rates and consider locking in a fixed rate now if they are concerned about future increases.