Mortgage borrowers are increasingly opting for variable-rate mortgages, a trend that is expected to continue as the Bank of Canada continues to lower interest rates.
As of the first quarter, 12.9% of new mortgage borrowers opted for a variable-rate mortgage, according to figures from the Bank of Canada.
That’s up from a low of 4.2% reached in the third quarter of 2023, but down from a peak of down from a peak of nearly 57% of originations reached during the pandemic when most variable rates were available for less than fixed-rate products.
A variable-rate mortgage is one where the interest rate can change over time, typically in relation to the Bank of Canada’s overnight target rate.
More recent data show that while the popularity of variable-rate mortgages eased heading into the spring—and just ahead of the Bank of Canada’s…
