Natalie Wellings: Mortgage Broker with Verico Compass Mortgage Group

10/28/2026

It’s been quite a while since I’ve had a change to report to you! It’s been a whole year since the Bank of Canada made an adjustment to the prime rate. Last October, the BoC lowered the prime rate to 4.45%, where it has remained steady ever since.

In an announcement made this morning, the BoC increased the prime rate by 0.25%.

You may be asking, why is the BoC doing this to us? Don’t they know we are being squeezed in every which way? It’s a fair question.

Well, in summary, the BoC’s mandate is to try to control inflationary pressures. To put it mildly, there’s been a lot going on in the world!
Inflation has been rising:

• Oil prices have been persistently high since April. This is increasing the cost of producing goods and transportation costs associated with the manufacturing industry.

• The conflict in the Middle East has been ongoing for eight months, with no clear resolution in sight. This is keeping energy prices higher for longer than originally anticipated.
Canada’s economy:

• The economy is doing better than expected despite the trade war with the US. Canadian exports have been stronger than expected, and it looks like Canadian businesses are generally adapting well to the changing trade environment.

• Consumer spending has been pretty solid, despite changes to federal immigration policy that are allowing fewer newcomers into the country.

Why has the prime rate increased today?

In short, inflation is higher and more persistent. The BoC is always trying to control inflation, and its primary tool is to raise or lower its policy interest rate. Increasing the rate helps to curb inflation, theoretically. With economic growth being better than expected, the BoC is attempting to keep inflation within its 2% target range.
However, the Bank’s statement noted that “this forecast is still subject to considerable uncertainty, particularly regarding Canada-US trade relations.”

The Bank acknowledged that “there could be a need to increase the policy rate further” following today’s announcement. However, it added that “given uncertainties, Governing Council agreed to proceed carefully.”

What does this change mean for you?

If you have a fixed-rate mortgage, then it doesn’t change a thing! Your payment remains the same.

If you have a variable-rate mortgage or a home equity line of credit, your interest rate will increase by 0.25%.

That being said, variable-rate mortgages are still significantly lower than fixed-rate mortgages. This is one of the benefits of a variable-rate mortgage. Historically speaking, variable-rate mortgages have typically outperformed fixed-rate mortgages over the long term. Consumers are often rewarded for choosing a riskier product with cost savings (this refers to historical interest costs and it’s prudent to note that past performance does not guarantee future savings).
That being said, there is no right or wrong product for everyone. Whether to go with a fixed or variable rate really depends on your mindset and where you are in life. There are times in life when security takes priority, and I am seeing many consumers choosing stability right now.

It’s also interesting to note that we have seen a significant increase in fixed interest rates over the last month. The fixed-rate market is always trying to anticipate the next decision by the BoC. It prices rates in anticipation of future developments, so fixed rates often move up or down ahead of a BoC meeting. In this case, the market was right, and the experts correctly predicted a prime rate increase.
This topic can often be confusing. Personally, I try not to get too hung up on these increases and decreases, as they are normal. The BoC raises and lowers interest rates in response to various economic indicators. If you have a mortgage with a variable interest rate, these changes are to be expected throughout the course of your mortgage term.

I am speaking to many clients lately who are looking for ways to trim their bottom line every month. If you have owned your home for some time, there may be equity we can access to help pay off other consumer debt. This can consolidate everything into one manageable monthly payment. Refinancing can often create some breathing room. I can certainly help you evaluate your options and show you what refinancing might look like for you.

I am always here for you! Feel free to drop me a line!

10/15/2026

❤️

07/30/2026

These lovely folks were such a delight! ❤️

04/29/2026

If you have a variable rate mortgage, your rate remains the same after the BoC announcement earlier today!

04/17/2026

12/11/2025

Yesterday, the Bank of Canada released its final scheduled announcement of the year, leaving the prime rate unchanged at 4.45%. For reference, the prime rate was exactly 1.00% higher at the beginning of 2025, with a prime rate of 5.45%.
We saw a slight uptick in fixed mortgage rates late last week and early this week in anticipation of the announcement. Fixed rates are tied to bond yields, which often rise or fall ahead of Bank of Canada decisions.
Overall, fixed interest rates have remained relatively stable in 2025. Back in January, the 5-year fixed insured rate was hovering around 4.50%. Today, it’s sitting closer to 4.25%. After several years of rate volatility, this stability is a welcome change—though rates are still higher than we’d like.
That said, many of my clients who are up for renewal are choosing to refinance their mortgages to access equity and pay off other higher-interest debts. For many households, this strategy provides some much-needed breathing room in their monthly budget.
Please reach out to me with any questions or to have a quick chat about options!

12/11/2025

Yesterday, the Bank of Canada released its final scheduled announcement of the year, leaving the prime rate unchanged at 4.45%. For reference, the prime rate was exactly 1.00% higher at the beginning of 2025, with a prime rate of 5.45%.

We saw a slight uptick in fixed mortgage rates late last week and early this week in anticipation of the announcement. Fixed rates are tied to bond yields, which often rise or fall ahead of Bank of Canada decisions.

Overall, fixed interest rates have remained relatively stable in 2025. Back in January, the 5-year fixed insured rate was hovering around 4.50%. Today, it’s sitting closer to 4.25%. After several years of rate volatility, this stability is a welcome change—though rates are still higher than we’d like.

That said, many of my clients who are up for renewal are choosing to refinance their mortgages to access equity and pay off other higher-interest debts. For many households, this strategy provides some much-needed breathing room in their monthly budget.

Please reach out to me with any questions or to have a quick chat about options!

12/11/2024

The Bank of Canada has made the wishes of variable-rate mortgage holders come true with a 0.50% rate cut! In response to recent economic data showing weak employment numbers and a generally slowing economy, the Bank of Canada decided to surprise us with another significant rate reduction (rate changes are usually made in 0.25% increments). This morning, the prime rate was lowered from 5.95% to 5.45%.

There’s a lot of excitement surrounding this additional rate cut to close out the year, and we expect more cuts in 2025. It's important to note that this rate change primarily affects those with variable-rate mortgages and home equity lines of credit, as these types of loans fluctuate with the prime rate.

Fixed rates have not changed, but since prime and fixed rates often move in tandem, we are hopeful that we’ll see further relief for fixed-rate mortgages soon. Due to recent rate cuts, variable-rate mortgages have become more popular. A variable-rate mortgage can be a smart strategy for weathering higher rates, with the potential to lock in a lower rate when they eventually decline.

If you’re up for renewal or planning to purchase a new home, now could be one of the best times to obtain a mortgage in recent years. Please contact me to discuss your options!

The next interest rate announcement by the Bank of Canada is scheduled for January 29th, 2025.

10/24/2024

It was widely speculated and anticipated for weeks, and now it’s finally here! A gift from the Bank of Canada in the form of a 50-basis point cut! The central bank cut its rate yesterday by 0.50%. This is welcome news for those with variable rate mortgages and home equity lines of credit. The prime rate moves from 6.45% to 5.95%. I’m happy with any cut they’ll give us, but as you can see, the prime rate still remains quite high, and those with variable rates are still feeling the pinch.

In fixed rate news, rates are already substantially lower than on variable rate mortgages, with the 5-year fixed rate hovering around 4.5%. So, that being said, why would anyone choose a variable rate over a fixed rate and pay more? In short, flexibility and the hope of an even lower prime rate in the future.

I’m definitely seeing a marked increase in the number of borrowers choosing variable rate mortgages over fixed ones, including myself with my recently renewed mortgage.

It will be interesting to see what happens between now and the end of the year. The Bank of Canada has one more scheduled rate announcement set for December 11th, 2024. Hopefully another cut is in the cards.

Fixed rates do not change on a schedule; they are priced based on bond yields and can change at any time. I’m hoping for more rate decreases on the fixed side as well.

It’s nice to have lots of positive news to share with you after several years of high interest rates. In addition, there are several positive changes that will make mortgage financing easier.

Here’s a recap of the changes effective December 15th, 2024:

• Stress Test Removal: The stress test is being removed on mortgage renewals, allowing borrowers to qualify to move their mortgage between institutions more easily.
• New Construction Homes: The maximum amortization has been increased to 30 years for mortgages on new construction homes.
• Amortization Changes for First-Time Buyers: First-time buyers can amortize their mortgage over 30 years instead of 25 years (starting December 2024). A first-time buyer is someone who has never owned a home or has not owned one in the last four years, including those going through a separation or divorce. Please contact me to ensure you meet this definition.
• Lower Down Payments on Homes Over $1 Million: The maximum purchase price allowable on an insured mortgage has increased from $1 million to $1.5 million—this means homes under $1.5 million can be purchased with less than 20% down.
I’m always here for you if you want to chat; please reach out!

The next rate announcement is scheduled for December 11th, 2024. Another rate cut is anticipated. Note: this will announce any changes to the prime lending rate which affects variable-rate mortgages (not fixed ones).

09/04/2024

I’m loving the new direction the Bank of Canada is taking! For the third time in a row, the Bank of Canada has lowered the prime rate by 0.25%, moving from 6.70% to 6.45%. The last time this happened was in 2009, when I was a baby broker in my second year of brokering. Those were the good ol’ days, when mortgages were a heck of a lot simpler!

What does this latest rate cut mean?

If you have a fixed-rate mortgage, it means nothing. The prime rate ONLY affects those with a variable-rate mortgage or a home equity line of credit (HELOC).

For insured mortgages (with less than 20% down), the current five-year fixed rate is about 4.69%. Insured variable-rate mortgages are currently priced at Prime -0.95%. After today’s announcement, this means a rate of 5.50% (6.45% - 0.95%).

Given that variable-rate mortgages are almost 1% higher than fixed-rate mortgages, why would anyone choose a variable-rate mortgage right now?

The short answer is flexibility and the overall rate outlook. The general consensus is that the Bank of Canada has not finished cutting rates and will likely continue to do so into next year. This means that if you have a variable-rate mortgage, your rate will continue to go down. If you do have a variable mortgage, I recommend keeping an eye on fixed rates. If they continue to fall, you might consider contacting your lender to explore the options to convert to a fixed-rate term. You can do this without having to qualify again and at no cost. It’s super easy!

I’m always here if you want to discuss your options, as it can be a complex decision right now.

The next rate announcement is scheduled for October 23rd, 2024. Another rate cut is anticipated of 0.25%.