🔒 Why More Canadians Are Choosing Fixed-Rate Mortgages at Renewal Time
As Canada’s mortgage renewal wave rolls through 2025 and 2026, thousands of homeowners are facing significantly higher interest rates than they locked in during the low-rate era of 2020–2021. With financial uncertainty on the rise, many borrowers are turning to fixed-rate mortgage options for stability and peace of mind.
📈 Fixed Rates Offer Predictable Payments Amid Economic Uncertainty
According to the Bank of Canada, most renewing borrowers hold five-year fixed-rate mortgages—and despite higher monthly payments, they’re expected to manage the transition well. That’s because many were stress-tested at higher rates during the pandemic and now have stronger incomes than they did five years ago.
Fixed-rate mortgages—whether for three or five years—are becoming the preferred choice for Canadians looking to avoid the unpredictability of variable rates. Unlike variable options, fixed rates remain steady throughout the term, shielding borrowers from fluctuations in bond yields and central bank decisions.
🏡 Ottawa Borrowers Prioritize Budget Stability
Ottawa-based mortgage broker Chris Allard notes that salaried professionals in the region are especially drawn to fixed rates. With limited access to overtime or bonus income, many clients are focused on keeping their monthly payments consistent.
“Fixed-rate mortgages offer peace of mind,” Allard explains. “With rising living costs, borrowers want to control what they can—and stable payments help them stay on budget.”
💸 Fixed vs. Variable: What’s the Real Difference?
While the gap between fixed and variable rates isn’t dramatic right now, the choice often comes down to risk tolerance. Variable rates may offer savings if the Bank of Canada cuts rates later this year—but many Canadians are opting for the security of fixed payments amid economic uncertainty.
Recent studies show growing financial stress across the country:
- 📊 27% of Canadians are unable to pay all their bills and loans in full (TransUnion Q2 2025)
- 💰 96% are worried about inflation
- 📉 51% fear a recession
- 😟 36% report feeling anxious or stressed about their finances (MNP Consumer Debt Index)
🔍 What This Means for Homeowners
If you’re renewing your mortgage soon, now is the time to explore your options. Fixed-rate mortgages can offer protection against rising costs and unpredictable rate changes—especially if you’re focused on long-term financial stability.
🤝 Partner With Sam Ansari – Trusted Mortgage Broker in Richmond Hill
Are you a Realtor in Ontario looking to help your clients secure the best mortgage solutions while earning a referral fee? Let’s collaborate.
I’m Sam Ansari, a licensed Mortgage Broker with Centum Financial Services LP, proudly serving clients from 11160 Yonge Street, Richmond Hill, ON.
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- ✅ Fast Pre-Approvals to close deals faster
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