🏡 August 2025 Mortgage Rate Forecast

Blog Post:

As August 2025 begins, many Canadian homeowners and buyers are wondering if mortgage relief is finally on the horizon. After nearly two years of high borrowing costs, the Bank of Canada’s July rate hold has sparked optimism that rate cuts could arrive by fall.

Fixed mortgage rates have already started to trend slightly lower, with major lenders trimming 5-year fixed terms amid cooling inflation data. Variable mortgage rates, however, remain tied to the BoC’s policy rate — meaning real savings may not appear until official cuts begin.

Experts predict that by late 2025, mortgage rates could ease by 0.25% to 0.50%, depending on inflation and global economic trends. For now, homeowners looking to renew or refinance should compare rates carefully. Short-term fixed or convertible mortgages may offer flexibility while waiting for lower rates ahead.

Whether you’re planning to buy, renew, or refinance, RateShop.ca helps Canadians compare top lenders and find the best mortgage rate — ensuring you don’t overpay as the market shifts in your favour.