Shane Communities Development
The conversation around mortgage rates continues to evolve in 2025, and for many Canadians looking to enter the housing market, it can feel like a lot to process. But for those willing to look beyond headlines and explore the full range of mortgage options, the current landscape is far more navigable—and even promising—than it might initially seem.
Rates Have Changed—But Context Matters
Today’s rates might appear elevated to buyers who were in the market during the pandemic, when five-year mortgage rates dipped as low as 1.59 percent. But in historical context, current levels are more in line with a stable and healthy economy. The Bank of Canada’s policy rate has eased to 2.75 percent after peaking at 5.00 percent in 2024, and the prime lending rate sits at 4.95 percent. Fixed and variable mortgage products are now commonly offered between 3.99 and 4.00 percent.
“This isn’t a crisis market—it’s a normalization,” says Kent Chapman, Broker Owner and Adviser with Mortgage Tree. “In the 1980s, buyers were dealing with 21 percent interest rates. Even in the early 2000s, 5.5 percent wasn’t unusual.”
Flexibility Over Flashy Numbers
Chapman urges buyers to think beyond the lowest rate on paper. “What looks like a great deal upfront can cost more in the long run if the product doesn’t match the buyer’s lifestyle or future plans,” he explains.
For example, fixed-rate mortgages often offer predictable payments, but they can carry steep penalties if broken early. On the other hand, variable-rate options may introduce short-term risk but come with greater flexibility. Prepayment privileges, amortization terms, and portability all play into whether a mortgage supports long-term financial goals.
Personalized Advice is More Valuable Than Ever
The path to homeownership looks different for everyone—especially for buyers who are self-employed, earning commission income, or immigrating to Canada. These situations require careful navigation.
Many borrowers assume a decline from one lender means they’re out of options. But Chapman insists that’s rarely the case. “Plenty of people qualify once they work with someone who understands the full range of lending policies,” he says. “It’s not just about numbers, it’s about how the file is structured.”
This is one reason Shane Homes partners with reputable brokers like Mortgage Tree. “Having an expert in your corner changes the whole experience,” says Melanie Gowans, Vice President of Sales, Marketing and Interior Design at Shane Homes. “It gives buyers clarity—not just about where they stand now, but about what’s possible next.”
Looking Forward: Control What You Can
Upcoming Bank of Canada announcements are expected to continue shaping the interest rate environment, making it important to monitor policy updates for potential impacts. But experts caution against trying to time the market. Instead, buyers are encouraged to focus on factors they can control—budget, borrowing power, and long-term goals.
Some may still benefit from a variable-rate product if further rate reductions occur. Others might prioritize the security of a fixed payment. What matters most is tailoring the mortgage choice to one’s personal situation.
Four Things to Remember in 2025
Today’s mortgage market rewards preparation and smart planning. Here’s what every buyer should keep in mind:
- Mortgage rates are still well within the normal historical range
- The structure and terms of your mortgage may matter more than the rate itself
- Working with an experienced broker can reveal options you didn’t know you had
- Personalized advice helps ensure your mortgage fits your life—not the other way around
Shane Homes continues to support buyers by connecting them with trusted lending professionals who guide them through every step of the process. In the end, it’s not just about where rates are today—it’s about making smart, informed decisions that work for your life.
