Donna Boyne

Variable mortgages could still cost less than fixed rates for some Canadian borrowers, even after the central bank raised its benchmark rate.
A mortgage broker cited variable rates in the high-3% range and fixed rates in the high-4% range, illustrating the potential initial savings.
In Canada, variable rates track the central bank’s benchmark, while fixed rates are influenced by bond yields and expectations for longer-term borrowing costs.
Choosing between mortgage types depends on risk tolerance and financial flexibility; brokers suggested fixed rates for borrowers who value predictable payments and stability.
An economist expected another central bank rate increase in Late-Q4, followed by a pause; earlier conflict resolution could ease inflation pressures and make hikes unnecessary.

Canada's Variable Mortgages May Still Save

A five-year non-redeemable GIC offered a mid-4% rate in Canada, illustrating how savers could compare yields alongside the commitment to hold until maturity.
On $10K held in a TFSA, the GIC would earn $450 in its first yr, versus ~$241 for one savings ETF at stated yields.
One Canadian savings ETF offered daily liquidity and monthly payouts, but lacked deposit insurance; eligible deposits at member banks had coverage up to $100K.
In a TFSA, GIC interest was tax-free; in a taxable account, interest was taxed at the investor’s marginal rate, changing potential returns.
Canada’s central bank projected inflation above ~3% by the end of 2026 and elevated through 2027, providing context for savers comparing investment options.