Five-year fixed mortgage hits lowest share since records began
“In 2023 and 2024, borrowers primarily favoured shorter fixed terms, but these in turn lost ground in 2025 and 2026 to variable-rate mortgages,” the report said.
How the shift unfolded
The pricing backdrop has driven the change. Variable-rate products fell below fixed-rate options in late 2025 for the first time since 2022, according to Canada Mortgage and Housing Corporation (CMHC).
By February, variable-rate mortgages represented 42% of extended mortgages at chartered banks, consistent with broader industry analysis of how variable-rate mortgages could be set to surge in 2026.
Borrower sentiment followed quickly. Penelope Graham, mortgage expert at Ratehub.ca in Toronto, told Canadian Mortgage Professional that the momentum accelerated as rate cuts took hold.
“In 2025, borrower interest in variable rates rose as the Bank delivered additional rate cuts over the autumn months; on a year over year basis, the number of inquiries for variable-rate mortgages on Ratehub.ca increased by 25.7% year over year accounting for 11.5% of all inquiries, compared to just 7% in 2024,” Graham noted.
