Bindu Johal, Mortgage Broker

Canada’s 5-yr government bond yield recently climbed by ~0.25 point, and lenders responded by lifting fixed mortgage rates across the market quickly.
Experts said some lenders raised fixed rates by ~10 to ~20 bps, while borrowers could face bigger changes if special discounts disappeared.
Analysts linked the move to energy-supply disruptions and broader global bond volatility, even as Canada’s core inflation measures stayed close to ~2%.
The central bank recently held its policy rate steady, but investors still saw possible hikes ahead as bond pricing stayed volatile overall.
With some 5-yr fixed offers now ~1 percentage point above comparable variable rates, one expert said borrowers comfortable with uncertainty may want to consider variable.

Fixed Mortgage Rates Rise Across Canada

Canada's household debt-to-income ratio moved to ~176% in Q2 2026 from ~179% in Q1, marking the strongest quarterly improvement in nearly two years.
Disposable income posted ↑~2% in Q2 2026 while total debt payments posted ↑~1%, helping the debt-service ratio reach ~14.5% for households nationally.
Borrowing totaled $29.4B in Q2 2026 versus $34.4B in Q1, as mortgage credit came in at $19.4B and non-mortgage debt near $10B.
For renewals, the national easing still left many homeowners facing budget adjustments, as mortgages originated at much lower rates rolled into materially higher ones.
Household net worth reached $19.1T, savings improved, and the debt-to-asset ratio hit its lowest level since Q1 2022 for Canadian households overall.