🏡 Mortgage Rate Trends & Forecasts — September 2025 Update

Blog Post

As we move into September 2025, all eyes are on the Bank of Canada and whether long-awaited rate cuts are finally on the horizon. After several months of stable policy rates, many economists predict a 0.25% reduction before the end of the year — a potential relief for both homebuyers and homeowners renewing

1. September 2025 Mortgage Rate Forecast: Are Rate Cuts Finally Here?

Mortgage rates in Canada are holding steady, but early signs of monetary easing suggest the market could shift soon.

• Fixed mortgage rates remain around 4.8%–5.2%, depending on term length.

• Variable rates hover near 5.6%, with possible downward adjustments if inflation continues cooling.
  Borrowers should monitor upcoming BoC statements and secure pre-approvals to lock today’s rates before volatility returns.1. September 2025 Mortgage Rate Forecast: Are Rate Cuts Finally Here?

  Mortgage rates in Canada are holding steady, but early signs of monetary easing suggest the market could shift soon.

  • Fixed mortgage rates remain around 4.8%–5.2%, depending on term length.

  • Variable rates hover near 5.6%, with possible downward adjustments if inflation continues cooling.
    Borrowers should monitor upcoming BoC statements and secure pre-approvals to lock today’s rates before volatility returns.
    
    2. Fixed vs Variable Mortgage Rates: Which Wins in Fall 2025?

    Fixed rates offer security as inflation remains above target, but variable mortgages could benefit if rate cuts accelerate in Q4. For most Canadians, hybrid mortgage options (part fixed, part variable) are gaining traction in 2025 for flexibility and risk balance.
    

3. Bank of Canada Rate Update: How It Impacts Mortgages This Month

The Bank of Canada’s September announcement maintained the overnight rate, focusing on long-term inflation control. While no cut occurred yet, lenders are preparing rate discounts, particularly for insured and shorter-term mortgages. This could mark the last stable month before gradual decreases begin.

4. Should You Lock in a 5-Year Fixed Rate Before 2026?

With forecasts suggesting modest rate drops by early 2026, locking in now could still make sense if you prioritize payment stability. However, if you’re flexible and financially comfortable with small fluctuations, a variable rate could yield savings in late 2025.

5. Canadian Mortgage Outlook: What’s Coming Before Year-End 2025

Expect competitive mortgage pricing as lenders vie for fall business. Brokers like RateShop.ca are helping Canadians compare over 100+ lenders, ensuring homeowners lock the best rates before the next market shift.