Earlier in 2025, it looked like variable-rate mortgages were making a comeback. With the Bank of Canada hinting at more rate cuts ahead, borrowers jumped on shorter terms and variable options hoping to ride a downward trend.
But fast-forward to the end of the year… and the mood has completely shifted.
Borrowers Are Choosing Safety Again — And Fast
Despite variable and five-year fixed rates sitting surprisingly close right now, Canadians are overwhelmingly choosing longer-term fixed-rate mortgages. Why?
Because uncertainty is back in the air.
According to several mortgage brokers, including 6ix Mortgage’s Taz Zaide, borrowers aren’t willing to gamble anymore — especially with talk of potential economic “turmoil” over the next 24 months. And with the Bank of Canada signalling it’s at or near the end of its rate-cutting cycle, the appetite for risk has cooled dramatically.
Translation: predictability is back in style.
Why Variable Rates Have Lost Their Shine (For Now)
Even though variable rates could technically fall again if the economy weakens, the keyword is could.
As Zaide puts it, forecasting today’s mortgage environment is like “a weather forecast — unpredictable at best.”
Here’s what’s driving borrowers towards fixed terms:
✔ The Bank of Canada is likely done cutting
✔ A shaky economic outlook for 2026–2027
✔ Renewals happening at rates that aren’t dropping fast enough
✔ A desire for stability after years of rate volatility
Most experts don’t expect meaningful variable-rate relief until 2027, and even that depends on whether the economy stays on track — something that recent years have proven is anything but guaranteed.
Good News: Some Renewing Borrowers Are Actually Paying Less
Here’s a surprise twist most Canadians don’t know:
Many borrowers who locked in mortgages during the peak of 2023 are now seeing lower payments at renewal.
Because rates have eased from their 2023 highs, some homeowners are walking into 2025 with a pleasant shock — reduced monthly payments and improved cash flow.
Zaide notes that these borrowers are “able to pay a lot less money on their mortgage payments due to the interest savings.”
For once, that’s a win for homeowners.
But What About the Big 2026 Renewal Wave?
There’s been plenty of panic-driven commentary about the massive number of mortgages renewing in 2026. But according to frontline brokers, most clients aren’t reporting financial “pain” yet.
Even so, borrowers should stay cautious. The Bank of Canada’s latest Market Participants Survey shows:
Few experts expect rate cuts in 2026
The central bank believes the current level is “appropriate”
Any economic shock could change the outlook overnight
In short: hope for stability, prepare for surprises.
Will Today’s Mortgage Rates Finally Ignite the Housing Market?
Everyone wants to know when the market will rebound.
The truth? Not yet.
With mortgage rates steady but not low enough to spark urgency, many buyers are pressing pause until early 2026. Historically, activity picks up mid-January — but for now, November and December remain slow.
Prices haven’t moved much either. In many regions, they're still lower than they were in the summer, offering a rare window of opportunity for buyers with available equity.
What This Means for Homeowners in Ontario
Whether you’re renewing, refinancing, consolidating debt, or tapping into your equity, 2025 is shaping up to be a “choose stability first” kind of year.
And this is exactly where Lendworth comes in.
⭐ Fast approvals — 24 hours or less
⭐ First, second, and home equity loans across Ontario
⭐ No income or credit score required
⭐ Flexible short and long-term options
⭐ Designed for homeowners who need certainty in uncertain times
When the market is unpredictable, your financing shouldn’t be.
Thinking About Refinancing or Taking Out a Home Equity Loan?
At Lendworth, we specialize in equity-based mortgages designed for real life — not rigid bank rules. If you want clarity on:
Your best option in today’s market
Fixed vs. variable for your specific situation
How to lower your monthly payments
How to consolidate debt using your home’s equity
How to borrow fast without overcomplicating the process
We’ll walk you through everything.
📞 Call 905-597-1225
🌐 Visit www.lendworth.ca
✔ Approvals in 24 hours. No credit or income required.