{"id":147,"date":"2026-04-02T20:30:53","date_gmt":"2026-04-02T20:30:53","guid":{"rendered":"https:\/\/donemortgage.ca\/blogs\/?p=147"},"modified":"2026-04-02T20:30:56","modified_gmt":"2026-04-02T20:30:56","slug":"fixed-vs-variable-mortgage-rates-in-canada-2026-what-smart-borrowers-are-doing-right-now","status":"publish","type":"post","link":"https:\/\/donemortgage.ca\/blogs\/fixed-vs-variable-mortgage-rates-in-canada-2026-what-smart-borrowers-are-doing-right-now\/","title":{"rendered":"Fixed vs Variable Mortgage Rates in Canada (2026): What Smart Borrowers Are Doing Right Now"},"content":{"rendered":"\n

Fixed vs Variable Mortgage Rate<\/strong><\/h1>\n\n\n\n

Canadian mortgage rates are shifting again \u2014 and if you’re buying, refinancing, or renewing, the decision between fixed and variable rates just became more important.<\/p>\n\n\n\n

Over the past week, 5-year fixed mortgage rates increased by about 0.40%<\/strong> across major lenders. The reason is simple: rising Government of Canada bond yields, which lenders use to price fixed mortgages.<\/p>\n\n\n\n

The 5-year bond yield is now hovering around 3.1%<\/strong>, pushing fixed mortgage rates above 4%<\/strong>.<\/p>\n\n\n\n

Meanwhile, variable mortgage rates remain as low as 3.35%<\/strong>, creating a gap of roughly 0.70% between fixed and variable rates<\/strong>.<\/p>\n\n\n\n

This leaves borrowers asking one key question:<\/p>\n\n\n\n

Should you choose fixed or variable right now?<\/strong><\/p>\n\n\n\n

Let\u2019s break it down.<\/p>\n\n\n\n

Why Fixed Mortgage Rates Are Rising<\/strong><\/h2>\n\n\n\n

Fixed mortgage rates follow bond markets \u2014 not the Bank of Canada directly.<\/p>\n\n\n\n

Current pressure comes from:<\/p>\n\n\n\n

\u2022 Global geopolitical tensions
\u2022 Oil price uncertainty
\u2022 Inflation concerns
\u2022 Delayed central bank rate cuts
\u2022 Investor risk pricing<\/p>\n\n\n\n

When bond yields rise, lenders increase fixed rates to maintain margins.<\/p>\n\n\n\n

This is exactly what we are seeing now.<\/p>\n\n\n\n

Why Variable Mortgage Rates Still Look Attractive<\/strong><\/h2>\n\n\n\n

Variable rates are based on the Bank of Canada overnight rate<\/strong>, which has remained stable.<\/p>\n\n\n\n

Because of this:<\/p>\n\n\n\n

\u2022 Variable rates remain cheaper today
\u2022 Payment flexibility remains higher
\u2022 Penalties remain lower
\u2022 Conversion options remain available<\/p>\n\n\n\n

But cheaper does not mean safer.<\/p>\n\n\n\n

If inflation persists, rate hikes remain possible.<\/p>\n\n\n\n

Borrowers choosing variable must be financially prepared for payment increases.<\/p>\n\n\n\n

Fixed vs Variable Mortgage: Quick Comparison<\/strong><\/h2>\n\n\n\n
Factor<\/strong><\/td>Fixed Rate<\/strong><\/td>Variable Rate<\/strong><\/td><\/tr>
Payment Stability<\/td>Very Stable<\/td>Can Change<\/td><\/tr>
Starting Rate<\/td>Higher<\/td>Lower<\/td><\/tr>
Risk Level<\/td>Low<\/td>Medium<\/td><\/tr>
Break Penalty<\/td>High<\/td>Low<\/td><\/tr>
Flexibility<\/td>Limited<\/td>High<\/td><\/tr>
Conversion Option<\/td>No<\/td>Yes<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Who Should Choose Fixed Right Now<\/strong><\/h2>\n\n\n\n

Fixed may make sense if:<\/p>\n\n\n\n

\u2022 You want predictable payments
\u2022 Your budget is tight
\u2022 You dislike financial uncertainty
\u2022 You believe rates will increase
\u2022 You want long-term stability<\/p>\n\n\n\n

This is the risk-management option<\/strong>.<\/p>\n\n\n\n

Who Should Consider Variable<\/strong><\/h2>\n\n\n\n

Variable may make sense if:<\/p>\n\n\n\n

\u2022 You can handle payment fluctuations
\u2022 You want lowest starting rate
\u2022 You may sell or refinance early
\u2022 You want flexibility
\u2022 You understand interest cycles<\/p>\n\n\n\n

This is the optimization strategy<\/strong>.<\/p>\n\n\n\n

The Strategy Most Smart Borrowers Use<\/strong><\/h2>\n\n\n\n

Experienced borrowers are not trying to predict markets.<\/p>\n\n\n\n

They are:<\/p>\n\n\n\n

Securing rate holds now.<\/strong><\/p>\n\n\n\n

A mortgage pre-approval allows you to:<\/p>\n\n\n\n

\u2022 Lock today’s rates for up to 120 days
\u2022 Protect against increases
\u2022 Benefit if rates drop
\u2022 Buy time to decide<\/p>\n\n\n\n

This is simply risk management.<\/p>\n\n\n\n

Not speculation.<\/p>\n\n\n\n

The Real Risk Most Borrowers Ignore<\/strong><\/h2>\n\n\n\n

The biggest mistake borrowers make:<\/p>\n\n\n\n

Waiting.<\/strong><\/p>\n\n\n\n

Mortgage markets move faster than most people expect.<\/p>\n\n\n\n

Every 0.25% increase costs roughly:<\/p>\n\n\n\n

$15\u2013$18 per $100,000 borrowed monthly<\/strong><\/p>\n\n\n\n

On a $700K mortgage:<\/p>\n\n\n\n

That\u2019s about $105 more per month<\/strong>.<\/p>\n\n\n\n

Waiting can be expensive.<\/p>\n\n\n\n

What Done Mortgage Clients Are Doing Right Now<\/strong><\/h2>\n\n\n\n

Borrowers working with Done Mortgage are currently:<\/p>\n\n\n\n

\u2022 Securing rate holds
\u2022 Comparing fixed vs variable scenarios
\u2022 Stress testing payments
\u2022 Reviewing renewal strategies
\u2022 Structuring approvals early<\/p>\n\n\n\n

The goal is simple:<\/p>\n\n\n\n

Control risk instead of reacting later.<\/strong><\/p>\n\n\n\n

Get Your Mortgage Options Reviewed (No Obligation)<\/strong><\/h2>\n\n\n\n

Whether you’re:<\/p>\n\n\n\n

\u2022 Buying
\u2022 Renewing
\u2022 Refinancing
\u2022 Self-employed
\u2022 Previously declined<\/p>\n\n\n\n

Getting a second opinion can save thousands.<\/p>\n\n\n\n

Book a quick mortgage review and see your real options.<\/strong><\/p>\n\n\n\n

Check My Mortgage Options<\/strong><\/p>\n\n\n\n

FAQ <\/strong><\/h1>\n\n\n\n

Are fixed mortgage rates going up in Canada?<\/strong><\/h3>\n\n\n\n

Yes. Fixed rates are increasing due to rising bond yields driven by inflation concerns and global uncertainty.<\/p>\n\n\n\n

Are variable mortgage rates cheaper right now?<\/strong><\/h3>\n\n\n\n

Yes. Variable rates remain lower than fixed rates, but carry risk if the Bank of Canada raises rates.<\/p>\n\n\n\n

Should I lock my mortgage rate now?<\/strong><\/h3>\n\n\n\n

If you are buying or renewing within 4 months, securing a rate hold is generally recommended to protect against increases.<\/p>\n\n\n\n

Can I switch from variable to fixed later?<\/strong><\/h3>\n\n\n\n

Most lenders allow conversion from variable to fixed without penalty.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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