Forex

Canada's Fixed Mortgage Rates Keep Rising Despite Bank of Canada Rate Hold

Guavy AI Editorial Team Published September 4, 2026

Instruments

CAD

The Bank of Canada kept its key interest rate unchanged on Wednesday, but the move did not calm down the rising fixed mortgage rates in Canada. According to Jamie David, VP of mortgages at Ratehub.ca, the spread between fixed and variable-rate mortgages has widened noticeably in recent months.

The current difference between the lowest available five-year fixed rate and five-year variable rate is now 'quite large,' said David. The lowest five-year variable rate is around 3.3% compared to a five-year fixed which is around 4.09%. This gap has been growing due to volatility in the bond market, with bond yields trending higher over the last several days.

'There is upward pressure at this moment,' David said, 'and fixed rates could go up further in the coming days.'

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