Fixed Rates Remain Popular Choice at Renewal as Canadians Seek Stability

Despite recent declines in variable mortgage demand, many Canadian homeowners are opting for fixed-rate mortgages at renewal. Stability in monthly payments is driving the trend as uncertainty about inflation and future Bank of Canada moves persists.

As Canada’s mortgage market adapts to ongoing economic pressures, one trend remains consistent: homeowners are favouring fixed-rate mortgages at renewal time. Even with bond yields easing slightly in recent weeks, the lure of predictable monthly payments continues to outweigh the potential savings of variable-rate products.

The Canadian housing market has entered a period of cautious optimism, with many analysts projecting rate cuts in 2026. However, uncertainty around inflation and the Bank of Canada’s policy stance means that borrowers renewing mortgages today are prioritizing security over speculation.

Mortgage advisors across major cities report that three-year and five-year fixed terms are seeing the strongest uptake, giving households some stability while keeping the door open for refinancing if rates drop later.

Although variable rates have historically offered lower costs over the long term, their volatility during the 2022–2024 tightening cycle left many Canadians wary. With affordability already strained, even modest swings in monthly payments can destabilize household budgets.

Lenders are also marketing fixed-rate products aggressively, with some offering cashback incentives and rate guarantees up to 120 days before renewal, further reinforcing the fixed-rate trend.

For Canadian homeowners, the choice of mortgage product at renewal can significantly affect financial stability. The current preference for fixed rates reflects both lingering caution and a desire for predictability in an uncertain economy.

As Canada waits for clearer signals on monetary policy, fixed-rate renewals remain the safe harbour for borrowers navigating today’s challenging housing market.