Since the start of 2025, fixed mortgage rates have dropped by about 0.50%. Compared to the peak in October 2023, we’re down 2.50%. That’s not just a dip – it’s a nosedive. We haven’t seen rates this low since in more than three years.
But before you pop the champagne…
We need to talk about what just happened this week.
A Yield Spike That Could Derail Everything
On Monday, Government of Canada bond yields spiked more than 7% — the biggest single-day move we’ve seen in years. Then came the real fireworks.
On the afternoon of April 9th, Trump announced a 90-day pause on reciprocal tariffs on select countries. Wall Street lit up like it was 1999 — the Dow and S&P 500 both jumped over 7% while the Nasdaq shot up 10% in a single day. That’s massive.
And what happened next?
Bond yields followed the surge, climbing another 5.70% (at time of writing). And when bond yields go up, upward pressure is placed on fixed mortgage rates.
This means that lenders will likely start inching rates upward again. If bond yields keep rising, then the sub-4% rate party could be over before most even show up.
Want a deeper dive into the mechanics? Check out my explainer blog: Fixed Mortgage Rate Pricing Explained
How to Ensure You Get the Lowest Mortgage Rate
In order for us to maximize your savings on your mortgage, we need to protect you from the possibility of mortgage rates rising. The only way we can do this is by getting a rate locked in for you ASAP. If fixed mortgage rates were to drop, then we’ll get the rate lowered for you. If another lender were to come out with a lower rate, then we can move you to that lender. It doesn’t matter if you’ve already signed the documents or not.
We are constantly monitoring rates for our clients which is part of the service we offer. At PMT Mortgage, we won’t just save you money, but time as well. We’ll do the mortgage rate shopping so you don’t have to. This is something we take very seriously.
The only risk is in waiting. If the rates were to increase, then you would have no choice but to accept the higher rate. The only way to ensure you get the lowest rate is to get something locked in asap.
The Mortgage Rate Roller Coaster
When rates fall, it’s easy to think they’ll just keep falling forever.
But like any good coaster, what goes down… eventually climbs again.
I’ve said for a while that if fixed rates fell to the mid-3% range then we would be doing pretty well. Well – we’ve unwrapped it.
But the window might already be closing.
The big question: Have mortgage rates bottomed out?
Possibly. Inflation is heating up again. And Trump pulling back tariffs means the Bank of Canada may shift focus back to cooling prices. That could delay rate cuts – or worse, trigger premature hikes.
Even though fixed mortgage rates aren’t directly tied to BoC rate moves, inflation expectations are, and bond yields can react accordingly. And that domino effect is what pushes fixed rates up.
Who is Eligible for a 5 Year Fixed at 3.64%?
The lowest fixed mortgage rates can vary based on a number of things. To qualify for the 3.64%, you must meet the following criteria:
✔️ Insured mortgages – Purchases up to $1.5 million with less than 20% down
✔️ Purchases under $1M with 35%+ down
✔️ Transfers of insured mortgages
If you don’t fall into these categories then no stress – we’ve got competitive rates across the board. We’ll get you the lowest rate you’re eligible for, full stop.
Final Thoughts – Lock It Before You Lose It
Unless bond yields cool off fast, fixed mortgage rates are likely heading up again. Inflation isn’t backing down, and neither are the markets.
Anyone with a purchase closing or a mortgage coming up for renewal in the next 120 days should get a fixed mortgage rate locked immediately. If you’re looking to maximize your savings on your mortgage, reach out to us today to discuss locking in a fixed rate as low as 3.64% while it’s still available.
Other recent blogs:
Why Variable Rates Can Be Misleading
Mortgage Rates Now Below 4% – But Don’t Get Too Comfortable
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