With more Canadian borrowers leaning toward variable-rate or shorter-term fixed mortgages, there’s growing exposure to changing interest rates at renewal time. Our mortgage structure means that rate shifts are felt quickly and directly by households, since many Canadians renew every few years. Unlike countries where long-term fixed mortgages are the norm, our system can strengthen banks but also makes homeowners more sensitive to interest-rate swings. Opting for a shorter term isn’t necessarily a misstep—many consider inflation, income stability, refinancing options, and even how likely they are to move. As someone who’s helped thousands of clients navigate these decisions over the past two decades, I know there’s no one-size-fits-all answer, but it’s clear: with shorter mortgage terms, being prepared for rate changes at renewal is more important than ever.
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