Canada's Fixed-Rate Mortgages Continue to Climb Despite Bank of Canada Rate Hold

The Bank of Canada held its key interest rate steady on Wednesday, but fixed-rate mortgages in Canada are still rising. The gap between fixed and variable rates is growing, according to experts.

Jamie David, VP of Mortgages at Ratehub.ca, said the spread has 'widened noticeably' over recent months as five-year fixed-rate mortgage interest rates edge up due to volatility in the bond market.

The current difference between the lowest available five-year variable rate and five-year fixed rate is significant, with David noting that the lowest five-year variable rate is around 3.3 percent compared to a five-year fixed rate of approximately 4.09 percent.