It may be time to get ready for a wild ride—2025 is shaping up to be a roller coaster year for mortgage rates in Canada.
If you’re looking for a mortgage or thinking about renewing, it’s time to prepare yourself for some ups and downs.
What Can We Expect?
According to Canadian Mortgage Trends, mortgage rates this year are going to be unpredictable.
Things like inflation, global economic shifts, and a changing political administration in the US all play a part in this.
Fixed vs. Variable: What Should You Choose?
One big decision for borrowers this year is whether to go with a fixed or variable rate.
Here’s a quick breakdown:
Fixed Rates
- Good for: If you like stability and predictable payments.
- What to know: Fixed rates do not allow you to reap the rewards if the Bank of Canada rate drops.
Variable Rates
- Good for: If you’re okay with some risk and want the chance to save over the long term.
- What to know: Your payments could go up if rates climb.
There’s no one-size-fits-all answer. It really comes down to your financial situation and how much risk you’re comfortable with.
That is where we come in. Discussing your risk tolerance, current financial situation and goals, will assist in determining the best options.
How to Handle the Rate Roller Coaster
No one knows exactly where rates are headed, but there are a few steps you can take to stay on track:
- If you are considering home ownership, consider Getting Pre-Approved: Lock in a rate now to protect yourself if rates rise.
- Stay Informed: Keep an eye on economic updates—the more you know, the better. We are here to help you.
- Work with a Pro: We have been navigating mortgage trends and market volatility for over 20 years, and we are here to guide you through all the uncertainty.
We’re here to discuss your options, always keeping in mind your month-to-month affordability and ensuring the decision you make lets you sleep at night.
Action Items
- Looking to Buy? Getting pre-approved is always the first step. This allows us to provide strategic guidance, information, and next steps.
- Have a Current Mortgage? If your rate is above 4.99%, let’s chat. There may be an option to lower your rate.
Final Thoughts
The only thing experts are sure about in 2025 is that nothing is certain!
Whether you go fixed or variable, the key is to pick the option that matches your financial goals and comfort level.
If you’re ready to chat about your mortgage options, our team is here to help make the process simple and stress-free.
