Five years ago, many Canadians locked in mortgages when the Bank of Canada’s overnight rate was just 0.25 percent. Despite recent rate cuts, today’s five-year fixed mortgage rates remain about 25 percent higher than in 2020. As over a million mortgages come up for renewal in 2025–26, many households will face higher payments – raising concerns about household finances and financial system stability. For more information on how mortgages relate to financial stability, see this C.D. Howe Institute report.
