Mortgage Rates and the BOC rate

💡 Why do mortgage rates change when the Bank of Canada hasn’t moved rates yet?

Many people are surprised to learn that fixed mortgage rates aren’t set directly by the Bank of Canada — they’re heavily influenced by bond yields.

Here’s the simple explanation:

📈 When government bond yields rise, lenders’ borrowing costs increase.
➡️ Fixed mortgage rates usually go up.

📉 When bond yields fall, lenders can borrow money more cheaply.
➡️ Fixed mortgage rates often come down.

Think of bond yields as the financial market’s prediction of where interest rates and inflation are heading.

That’s why mortgage rates can change even when no official rate announcement has been made.

Understanding this helps buyers and homeowners make better timing decisions when locking in a rate.

Have questions about where rates may be heading? I’m always happy to help explain your options.