Mortgage Rates Are Dropping—Is Now the Time to Lock In?

If you’ve been waiting for mortgage rates to drop before buying a home or refinancing, I’ve got some good news—rates are finally coming down! 🎉

But before we all start celebrating, let’s talk about why this is happening and what it actually means for you. Because, like most things in the mortgage world, there’s a little more to the story.

Why Are Mortgage Rates Dropping?

Well, it’s not because the banks suddenly felt generous. The real reason? Economic uncertainty.

The U.S. just slapped Canada with some hefty tariffs—25% on most Canadian goods and 10% on oil and gas. This kind of trade drama sends markets into a frenzy, and when that happens, the Government of Canada’s 5-year bond yield takes a hit. And guess what? Bond yields and fixed mortgage rates are closely linked, so when bond yields drop, mortgage rates tend to follow.

Over the weekend, lenders started cutting rates—some by as much as 0.30%. And if this trend holds, we could be seeing even lower rates in the coming weeks.

What Does This Mean for You?

If you’re in the market for a mortgage (or thinking about making a move soon), here’s how this impacts you:

✅ Lower Monthly Payments – A lower mortgage rate = smaller payments, which means you keep more money in your pocket each month.

✅ More Buying Power – A lower rate can help you qualify for a bigger mortgage (without increasing your budget).

✅ Better Refinancing Options – If you’re carrying high-interest debt or want to access your home equity, now might be a great time to look at your refinancing options.

✅ Uncertain Future – While rates are dropping now, inflation and economic shifts could push them back up. If you’re on the fence, it might be a good idea to take action sooner rather than later.

Should You Lock in a Rate Now?

Honestly? It depends.

Some experts predict the Bank of Canada will continue cutting rates this year to help stabilize the economy. But others warn that inflation could drive rates back up sooner than expected.

If you’re thinking about buying a home, it’s worth getting pre-approved now so you can lock in today’s lower rates. If you already have a mortgage, now’s a great time to review your options—especially if your renewal is coming up or you’re considering refinancing.

Let’s Make a Plan That Works for You

The mortgage world can feel overwhelming, but you don’t have to figure it out alone. Whether you’re buying, renewing, or just curious about how these changes affect you, I’m here to help.

📩 Send me a message, and let’s chat about your best mortgage strategy!