Canadian mortgage borrowers are facing economic uncertainty due to political changes, potential U.S. tariffs, and falling interest rates. Experts suggest that whether to choose a fixed- or variable-rate mortgage depends on market conditions. Variable rates may be appealing if rates continue to fall, but fixed ratesoffer more stability and are currently more competitive. For those unsure about future rate changes, shorter-term mortgages (around three years) provide flexibility. Borrowers should also consider their risk tolerance—variable rates are better for those who can handle fluctuations, while fixed rates offer predictability. Additionally, switching between mortgage types can involve penalties, so understanding the rules is crucial. Ultimately, the best mortgage choice depends on personal financial goals, stability, and market conditions.
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* Only when the buyer comes direct, otherwise the seller may choose to negotiate a commission with the buyer’s agent.
