How to Prepare for Changes in Fixed Mortgage Rates

Fixed mortgage rates can rise even if the Bank of Canada’s policy rate remains unchanged because fixed rates track five-year Government of Canada bond yields, which reflect investor expectations and broader market conditions. Bond yields increased from 2.73% to 3.42% despite the policy rate holding at 2.25%. Fixed rates change at purchase, renewal, or refinancing, influenced by credit profile, term, and lender costs, unlike variable rates tied closely to the policy rate.