Canadian Borrowers Shift Toward Fixed-Rate Mortgages
Canadian mortgage borrowers are increasingly choosing fixed-rate loans to avoid interest rate volatility as inflation remains high.
Canadian homeowners are shifting their preference toward fixed-rate mortgages to secure payment certainty amid persistent inflation and the prospect of rising interest rates. Data from Rates.ca shows that fixed-rate mortgages accounted for 71% of mortgage quotes in August, with five-year terms remaining the most popular selection.
This trend indicates a growing caution among borrowers who wish to avoid the volatility experienced in the interest-rate environment over recent years. While fixed rates dominate the market, there is a simultaneous increase in demand for variable mortgages. Variable-rate quotes rose from 21% in August 2025 to 29% in August 2026.
Some borrowers are choosing variable rates to capture immediate short-term savings, as these options currently offer lower rates than fixed alternatives. However, these homeowners must be able to manage potential payment increases if the Bank of Canada raises rates further.
