This Week’s Best Mortgage Deals: Fixed vs. Variable Rates

Markets are still largely expecting that the Bank of Canada will hold interest rates when it convenes in three weeks, but the odds of a cut are now higher than they’ve been for much of the summer.

 

Data from LSEG show that money markets are pricing in a nearly 60-per-cent chance of rates remaining where they are, while the odds of a 25-basis-point rate cut are just under 40 per cent. (There are 100 basis points in a single percentage point.)

 

Economists have said that relatively soft inflation data in August helped make a case for a rate cut in September.

 

There’ll be three more major data releases in the coming weeks that could affect the central bank’s decision, which will be announced on Sept. 17.

 

First, the gross domestic product report for the second quarter of 2025 will be released on Friday, followed by federal jobs numbers next week on Sept. 5. A weak showing in those two reports could further strengthen the case for a rate cut.

 

Canadian inflation numbers will be released in the week after the reports and will be the last major data point to have a major impact on the Bank of Canada’s decision.

 

Mortgage rates are sourced by Ratehub.ca. For a comprehensive list of today’s mortgage rates for each term/type, visit ratehub.ca/best-mortgage-rates.

 

Ratehub.ca is a mortgage-rate comparison marketplace and mortgage brokerage. It helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products.

 

Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on August 28.

 

 

 

 

This article was first reported  by The Globe and Mail