Skip to main content
Open this photo in gallery:

A look at the lowest available mortgage rates on fixed and variable terms and HELOCs this weekGene J. Puskar/The Associated Press

Waiting for the Fed

Canada’s leading nationally advertised rates barely moved in the last week. That’s a welcome development after the average Canadian mortgage rate surged 74 basis points in the past two months, according to the rate survey.

With five-year fixed rates appearing so much lower than short-term and variable rates, interest in these longer terms has picked up. Over 71 per cent of recent rate searches at mortgage comparison site,, have been for five-year fixed rates, according to CEO Hanif Bayat. The next most popular term in searches, the three-year fixed, is not even close, at 9 per cent.

Why some mortgage renewal payments could rise into 2025 even with rates projected to drop

Weighing on rates next week

The near-term direction of rates will be heavily dictated by what the U.S. Federal Reserve says next Wednesday. The entire market expects it to raise its key rate by 25 basis points. That’s already priced into today’s interest rates, and yes, the Fed very much affects where Canadian mortgage rates head from here.

If this turns out to be the last Fed hike, as the market expects, the market doesn’t think rates can stay this inflated for long. Hence, the worst part of this rate-hike cycle should be over.

Rates are provided by as of July 20, 2023. Only providers advertising rates online and lending in at least nine provinces are included. Insured rates apply to those buying with less than a 20 per cent down payment or switching a pre-existing insured mortgage to a new lender. Uninsured rates apply to refinances and purchases over $1-million and may include applicable lender rate premiums. For providers whose rates vary by province, their highest rate is shown.

Robert McLister is an interest rate analyst, mortgage strategist and editor of You can follow him on Twitter at @RobMcLister.

Are you a young Canadian with money on your mind? To set yourself up for success and steer clear of costly mistakes, listen to our award-winning Stress Test podcast.

Your Globe

Build your personal news feed

Follow the author of this article:

Check Following for new articles

Interact with The Globe