Fixed or Variable Mortgage? How Canada’s Economic Shifts Could Impact Your Decision

Lee Welbanks • February 24, 2025

Navigating Mortgage Rates in an Uncertain Market

With Canada’s economy facing trade tensions, inflation concerns, and a potential slowdown, mortgage rates are in flux. Borrowers must weigh the risks and rewards of fixed vs. variable rates to make the best decision for their financial future.

What’s Driving Mortgage Rate Changes?


Several key factors are shaping the mortgage landscape:

Trade Uncertainty – New tariffs between the U.S. and Canada could push inflation higher, impacting bond yields and fixed mortgage rates.

Inflation Pressures – If inflation stays above the Bank of Canada’s 2% target, rate cuts may be delayed, keeping borrowing costs higher.

Recession Concerns – If economic growth slows, the BoC could cut rates, making variable-rate mortgages more attractive.


Fixed vs. Variable: Which One is Right for You?

🔒 Fixed-Rate Mortgages:
✅ Predictable payments for peace of mind
✅ Protection from future rate hikes
❌ Typically higher initial rates
❌ Costly penalties if you break your term early


📊 Variable-Rate Mortgages:
✅ Lower starting rates with potential for savings
✅ Easier to break or refinance if needed
❌ Payments can fluctuate with rate changes
❌ Higher risk if inflation pushes rates upward


What’s the Best Move Right Now?

✔ Go Fixed if you want stability and protection from rising rates.
✔ Go Variable if you believe rates will drop and you can handle some risk.
✔ Consider a Hybrid Mortgage to get the best of both worlds.


Stay Flexible & Informed

Mortgage rates are unpredictable, and the best choice today may change in a few months. Working with a mortgage professional can help you navigate these shifts and secure the best deal for your financial future.

Need expert guidance? Reach out today to discuss your options!


Lee Welbanks

Bank of Canada Raises Rate to 2.5% — October 28, 2026

By Lee Welbanks • October 28, 2026
On October 28, 2026, the Bank of Canada raised its key interest rate by 0.25%, bringing it to 2.5%. If you have a mortgage, are shopping for a home, or have a renewal coming up, this decision matters. Here is a plain-language look at what changed, why it happened, and what it could mean for you.

Need Funds Between Buying and Selling? Here’s How Deposit Loans & Bridge Financing Help

By Lee Welbanks • October 21, 2026
You’ve outgrown your current home. It no longer fits your life, so moving makes sense. And you’re not interested in juggling two properties. Selling first and buying something new feels like the right move. Ideally, you want possession of the new home before leaving the old one. That overlap makes moving easier, reduces stress, and gives you time to paint, renovate, or settle in before the boxes arrive. But there’s a common challenge. What if the down payment for your next home is tied up in the equity of the one you’re selling? That’s where bridge financing comes in. How bridge financing works Bridge financing temporarily unlocks equity from your current home once it has a firm sale . It bridges the gap between selling your existing property and purchasing your next one, allowing you to use that equity toward your down payment. What about competitive markets? In a hot market, a strong offer often means a larger deposit . If you don’t have that cash sitting in your account, but you do have equity, a deposit loan can help you compete with confidence. The non-negotiable requirement To qualify for bridge financing or a deposit loan, your current home must have a firm, unconditional sale . No firm sale = no bridge or deposit loan. Lenders need certainty to calculate available equity and manage risk. Bottom line A firm sale is the key that unlocks bridge financing and deposit loans. If you’re planning a move and want to understand how these options could work for you, let’s talk. I’m always happy to walk you through your options and help you plan your next step with confidence.