A Stable Rate Environment = Opportunity

With spring just around the corner, this is usually the time when people begin thinking about what’s next, buying a new home, planning renovations, or simply getting their finances organized for the months ahead.

The good news? The market is offering something we haven’t had in a while, stability.

According to recent forecasts from Canada’s major banks (as reported by Canadian Mortgage Trends), the Bank of Canada is holding its policy rate steady, and most big banks expect rates to remain relatively stable through 2026. While some economists suggest we could see modest adjustments down the road, no one is forecasting dramatic jumps right now.

When we talk about stability, we’re referring primarily to variable rates, which are directly influenced by the Bank of Canada’s policy rate. With the Bank holding steady, variable-rate mortgages have remained consistent, giving homeowners and buyers some much-needed predictability.

At the same time, something interesting is happening with fixed rates. Fixed mortgage rates are influenced by the bond market, particularly Government of Canada bond yields. Due to recent geopolitical uncertainty globally, bond yields have fallen over the past couple of weeks. When bond yields drop, fixed mortgage rates often follow.

That’s good news for borrowers.

While global instability isn’t great for financial markets overall, it has created a short-term opportunity in the mortgage world. Lower bond yields mean lenders are able to offer more competitive fixed-rate pricing. If you’ve been watching fixed rates and waiting for the right moment, this recent dip could be an opportunity worth exploring before markets shift again.

If you’re thinking about buying this spring, one of the smartest first steps is securing a rate hold. Many lenders will hold your rate for up to 120 days. That means if rates rise, you’re protected. If rates fall, you can often access the lower rate. Plus, you’ll know your budget before house hunting.

Spring markets can heat up quickly once listings increase. Having a pre-approval in place gives you confidence and a strong negotiating position without pressure or guesswork. Even if you decide not to move forward, you’ll gain clarity around your numbers. And clarity is powerful.

This is also the season when many homeowners start planning outdoor projects like a new deck or patio, landscaping upgrades, a pool, or even an outdoor kitchen. If renovations are on your mind, now is the time to review your home equity. Many homeowners have built up more equity than they realize. Options like a Home Equity Line of Credit (HELOC) or refinancing could allow you to access funds in a way that keeps payments manageable, often without disrupting your long-term financial plans.

The key is having the conversation before you book contractors or pay deposits. A quick review now can help you move forward confidently and avoid surprises later.

If your mortgage renews this year, starting early can give you more flexibility and negotiating power. You’re never obligated to accept your lender’s first offer. Small adjustments to rate, term, or structure can make a meaningful difference in your monthly budget and long-term plans.

Written By: Jean Lamarche