Canadian Mortgage Rates Adjust Amid Economic Uncertainty

Mortgage rates in Canada are experiencing fluctuations in 2025 due to the Bank of Canada's policy rate adjustments and economic uncertainties, including tariffs and inflation concerns. Recently, the Bank has lowered its policy rate, resulting in a decline in prime and variable mortgage rates, with some fixed rates also dropping. High-ratio mortgage rates are now below the 4% mark, while many five-year fixed rates hover around the mid-4% range. The impact of rising rates is significant, as they can increase monthly payments, affecting affordability for homebuyers. Additionally, Canadian mortgage lenders are adjusting their pricing strategies against a backdrop of economic risks, which may influence borrowing costs. Overall, potential homebuyers are encouraged to stay informed about mortgage options and negotiate to secure lower rates.