While fixed-rate mortgages with shorter terms have gained popularity, experts anticipate a potential reversal of the trend in the future. Mortgage strategist Robert McLister believes that if the Bank of Canada hints at a future rate cut, variable-rate mortgages may regain popularity. However, McLister emphasizes the importance of monitoring the probability of a rate cut, as a significant chance of a cut in the next meeting could lead to increased demand for variable-rate mortgages.

As interest rates rise in Canada, homeowners are increasingly favoring fixed-rate mortgages over variable-rate options. The decline in popularity of variable mortgages reflects shifting borrowing preferences driven by recent rate hikes. While the current trend favors fixed-rate mortgages, industry experts anticipate a potential shift in the future based on economic indicators and Bank of Canada decisions. It is essential for homeowners to carefully evaluate their options and consider their long-term financial goals before making mortgage decisions in a changing interest rate environment.