More Canadians Are Ditching Fixed-Rate Mortgages
Posted by Christopher Audette on
Why are more Canadians choosing variable mortgages? Because for the first time since 2022, going variable is both cheaper and increasingly the default. Variable-rate mortgages now make up 36% of all mortgages outstanding, while 5-year fixed has slipped to 20%, per the Bank of Canada.
The reversal is sharper in new lending. CMHC reports variable reached 42% of newly extended loans at chartered banks by February 2026, against 11% fixed. The driver: variable rates fell below fixed in late 2025 for the first time in years. As of September 3, 2026, average fixed sits at 4.62% versus 3.95% variable, while the Bank of Canada holds at 2.25%.
But the national number can't tell you how much this matters to your household: that depends on your mortgage size.…
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