With all that is going on in the world it is fair to question what to expect for mortgage rates in 2026 and beyond. At the DLCG Group as a national mortgage brokerage we are fortunate to have access to many bright minded economists including Dr Sherry Cooper. We had a call with her last week after the Bank of Canada meeting where they held the overnight lending rate in place so no change to variable rates.
In response to the war in the Middle East the bond yields have been rising and fixed rates are up this week for 3-5 year terms.
Here is a summary of a forecast for rates fixed and variable.
Interest rates are expected to rise gradually over the next few years.
The Prime Rate may increase by .5% to 1% by end of 2027. They may remain stable or slight increase over the following 2 years to settle around 5.45% The current Prime Rate is 4.45%. Variable mortgages are priced with a discount off Prime. Currently net variable rates range from 4% down to 3.5% range.
The 5 year fixed rate may increase by up to .75% in the next year with incremental increases in the next 3-5 years landing in the 5.5% range.
These of course are forecasts only. However, it does speak to the point that rates will likely go up.
There are many options for borrowers or homeowners available through a licensed professional independent mortgage broker. We don’t work for the banks – we work for the client.
It is a good time to talk with your independent mortgage broker to set a plan for your financing now and in the future.