With Donald Trump elected as the new president in the US election yesterday, mortgage rates here in Canada have already been affected. What’s happening and what it could mean for your mortgage choices? Take a look.

Why Are Fixed Rates Going Up After the US Election?

The U.S. election has pushed bond yields up, which has a direct impact on Canadian fixed mortgage rates. The market views Trump’s economic policies as potentially beneficial to the U.S. economy, creating a ripple effect that’s causing Canadian lenders to announce rate increases. This increase may or may not last long-term, as markets often react quickly and then adjust, but the immediate impact is upward pressure on fixed rates.

What About Variable Rates?

The situation for variable rates in Canada is a bit different. With the Bank of Canada’s next announcement on December 11th, there’s a chance we might see variable rates come down. This could offer an advantage for borrowers considering variable-rate mortgages, as lower rates could lead to reduced monthly payments.

Whether to choose a fixed or variable rate depends on your specific financial situation and goals. Fixed rates may provide stability if rates continue rising, while variable rates might offer flexibility if they start to decrease. If you’re wondering which option best suits your needs, feel free to reach out. I’m here to help you every step of the way.

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About Jason Scott, Edmonton Mortgage Broker

Looking for a personalized mortgage solution? As an Edmonton Mortgage Associate, I’ll be your trusted partner who will help you get the right mortgage for your family home or Investment property. I’m Jason Scott, and I’ll be your Mortgage Broker in Edmonton.