Floating your mortgage isn’t the gamble it once was

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeReal EstateMortgagesMortgage RatesFloating your mortgage isn’t the gamble it once wasRobert McLister: Several banks leapt at the chance to bump their fixed rates this week, betting panicky borrowers will lock inLast updated 2 minutes ago For sale and for lease signs outside of condos in London, Ont. on Oct. 28, 2026. Photo by Geoff Robins/The London Free PressThis week, the Bank of Canada decided it needed to make homeowners’ lives a little more expensive in the near term — ironically, to make our lives less expensive in the future.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountIt did that by jacking up floating interest rates by 25 basis points. For mortgages with 20 years remaining, for example, that adds roughly $13 a month to an adjustable-rate mortgage’s floating payment per $100,000 outstanding. Payment changes under most other amortizations differ by just a buck or so.This advertisement has not loaded yet, but your article continues below.On a fixed-payment variable-rate mortgage, the amount stays put — unless a trigger rate is reached (which you don’t have to worry about right now) — but roughly $21 more goes toward monthly interest instead of principal.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of will soon be in your inbox.We encountered an issue signing you up. Please try againAnd the fun might just be getting started. With the central bank projecting inflation to hover around three per cent in 2027, forward rate pricing from CanDeal DNA suggests the market is bracing for three more hikes next year.Never ones to let a good hike go to waste, several banks immediately bumped up not only their prime rates but their fixed rates too — despite the fact that fixed funding costs have been falling.Some lenders do this knowing panicked borrowers will come sprinting through the doors to lock in after the first Bank of Canada hike.If you’re one of these worried borrowers, carefully assess the math before signing any new mortgage. Locking in long-term after fixed rates have already shot up is not the right move for many.Rates worth datingFor those shopping around for a new rate mate, the current lay of the land for leading national offers looks like this:This advertisement has not loaded yet, but your article continues below.Three-year fixed: 4.44 / 4.64 per cent (insured / uninsured)Five-year fixed: 4.44 / 4.84 per cent (insured / uninsured)Five-year variable: 3.55 / 3.90 per cent (insured / uninsured)Dig into the regional rate tables and you’ll uncover even deeper fixed-rate discounts in certain provinces from players like local credit unions, Butler Mortgage and RateBuzz.By the way, RateBuzz has an uninsured five-year fixed in Ontario and Alberta at a door-crasher deal of 4.30 per cent.On the flip side, well-qualified borrowers with strong credit, income and assets hunting for a conventional variable rate should call a Big Six bank like RBC, CIBC, etc. Nobody beats the megabanks’ funding costs on uninsured variables, so see what kind of discretionary discount they’re willing to slide you under the table.Given where the market expects rates to go — and the widening gap between fixed and variable pricing — floating your mortgage isn’t quite the high-wire act it was earlier this year when fixed rates were much cheaper.Yet, for term-agnostic borrowers seeking the lowest potential borrowing cost, rate simulations at MortgageLogic.news (based on forward rates and the best current discounts) still give fixed rates the slight edge on paper.Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.For the best national insured and uninsured mortgage rates, updated daily, please visit our mortgage rate page here.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.