Falling Fixed Mortgage Rates: What Canadian Buyers and Homeowners Should Know in 2025
Contributed by Satbir Bhullar Mortgages After two years of rising costs and cautious borrowing, fixed mortgage rates in Canada are finally trending downward — and it’s shifting the conversation for both buyers and homeowners. As of April 2025, many lenders are offering 5-year fixed rates in the 4.50% to 4.79% range , with even lower options available through broker channels. For first-time buyers, renewers, or anyone considering a refinance, this decline could mean real savings and renewed affordability. But as with any mortgage trend, the key is knowing how to respond — and when. In this article, we’ll explore: Why fixed rates are falling What it means for your mortgage decisions How to make the most of this shift in 2025 Why Fixed Mortgage Rates Are Falling in 2025 Fixed mortgage rates in Canada follow the movement of 5-year Government of Canada bond yields , not the Bank of Canada’s policy rate. Over the past few months, bond yields have been falling due to a mix of: Slower inflat...