Best Variable-Rate Mortgages in Ontario

Variable mortgage rates fluctuate due to a mix of factors:

• Economic Indicators: Key economic metrics, such as inflation rates, unemployment figures, and GDP growth, are crucial in shaping variable rates. Typically, an increase in inflation leads to higher variable rates, as lenders aim to offset the inflationary impact on their returns.
• Bank of Canada Policies: The Bank of Canada significantly influences variable rates by controlling short-term interest rates. Any adjustments to its policy rate, for instance, the overnight rate, can alter lenders’ borrowing costs, which in turn affects the variable rates offered to borrowers.
• Mortgage Market Conditions: The state of the mortgage market, governed by supply and demand, broader economic trends and investor sentiment, can sway variable rates. These conditions reflect the overall economic climate, influencing how rates are set.