Deanne Whelan

High interest rates are affecting mortgage choices at renewal in Canada. More households are choosing variable-rate and shorter-term mortgages, increasing their exposure to future interest-rate changes.

Key Takeaways

• Recent interest-rate volatility has highlighted how quickly mortgage costs can change for many Canadian households when mortgages come up for renewal.
• Canadians are increasingly choosing variable-rate mortgages and shorter fixed-rate terms, changing their exposure to future interest-rate movements.
• Mortgage term choices do more than affect borrowing costs. They influence how interest-rate risk is distributed across households and the broader financial system.
• As economic uncertainty increases, decisions about mortgage terms may become more important for households' financial resilience.

https://www.cmhc-schl.gc.ca/observer/2026/what-do-canadians-do-when-interest-rates-are-high