Remember when five-year fixed mortgage rates dipped below 4%? That little breath of relief? Yeah… it’s gone.
Mortgage rates in Canada are on the rise again — and not because of anything happening in your backyard. It’s what’s happening south of the border that’s driving the change, and if you’re planning to renew or buy soon, you need to pay attention.
🇺🇸 So, What’s Going On?
Even though this is a Canadian story, the U.S. economy is calling the shots. Their bond market sneezes, and we catch a cold.
🧠 Here’s the quick version:
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The U.S. 10-year Treasury yield just surged above 4.5%.
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That made Canadian bond yields jump too (our 5-year bonds).
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And like clockwork, fixed mortgage rates followed.
Why? Because fixed rates in Canada are directly tied to these bond yields. Think of it like economic gravity — and right now, gravity’s pulling your borrowing costs up.
😬 What Does This Mean for You?
If you’re one of the 1 million+ Canadians renewing your mortgage in 2025… brace yourself.
📉 That sweet ultra-low rate you locked in during 2020 or 2021? It’s vanishing.
📈 What’s replacing it? A payment shock that could be hundreds (or thousands) more per month.
Some homeowners will feel the squeeze. Others may have to make tough decisions — sell, refinance, or downsize. And this pressure could shake up the housing market, fast.
🛠 What Can You Do Right Now?
Don’t panic — but do prepare.
✅ Talk to your mortgage professional early
✅ Ask about early renewal or rate holds
✅ Explore hybrid or variable options
✅ Review your budget and run the numbers now
Because this isn’t just a headline — it’s real money, your future, and your financial peace of mind.
🔮 Final Thought
This rate spike isn’t about Canadian inflation, or what the Bank of Canada might do next month. It’s about global economic winds — and they’re shifting fast.
Smart homeowners aren’t just reacting — they’re planning ahead. Be one of them.
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👋 Got questions about your mortgage? Let’s talk before the rate hikes hit your bottom line.