Fixed rates held 71% of quotes in August as five-year terms recover ground lost during the rate war
Canadian mortgage borrowers are staying in the fixed-rate camp even as variable products attract a growing audience. New mortgage quote data from Rates.ca — which tracks consumer intent at the comparison stage — shows fixed-rate products commanded 71% of total quotes in August, while five-year terms are more entrenched today than at any point in the past two years, pointing to a market defined more by caution than by rate-chasing.
Variable rate interest climbs, but fixed stays dominant
The variable share has grown. Variable-rate mortgages accounted for 29% of Rates.ca mortgage quotes in August, up from 21% from a year ago, reflecting the growing appeal of variable products as the Bank of Canada (BoC) delivered a series of rate reductions through 2025.
But that momentum has not been enough to shift the fundamental preference of most Canadian borrowers, for whom payment predictability continues to outweigh the prospect of short-term savings.
"Borrowers are much more cautious about variable rates than they were a few years ago because they've seen how quickly the interest-rate environment can change," said Victor Tran, mortgage and real estate expert at Rates.ca.
"Fixed rates remain the more popular choice, and we're also seeing more homeowners opt for longer terms because they don't expect to make any major moves in the near future and want more certainty."
That preference for longer terms is striking. Five-year mortgages represented 76% of all three- and five-year term quotes in August, a figure that is nearly flat from the 75% recorded last year but sharply higher than the 55% share captured in August 2024.
What this means for borrowers approaching renewal
The preference for certainty maps directly onto the challenges facing borrowers as Canada's mortgage renewal wave tests household budgets in 2026.
Homeowners renewing from pandemic-era rates, many of them locked into five-year fixed terms originated at historic lows, are weighing not just where rates sit today, but where they might go if the economic outlook deteriorates or trade pressures resurface.
For brokers, the Rates.ca data reinforces what many are already hearing at the kitchen table: clients want a fixed rate, a longer term, and no surprises.
The variable conversation is worth having, but Tran cautions that it demands rigour.
"For borrowers willing to take that risk, there can still be short-term savings, but they need to be in a financial position to handle higher payments if rates rise. The lesson from the last rate-hiking cycle is not to make a decision based only on where rates are today."
Among clients approaching renewal, Tran is also seeing rising interest in extended amortizations and home equity lines of credit (HELOCs) as tools for financial flexibility — signals that Canadians are thinking about liquidity and risk management beyond just their next term.
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