{
  "id": 14737039,
  "title": "As bond yields rise, how to pick between a variable or fixed rate mortgage?",
  "url": "https://urgent.news/2026/10/15/as-bond-yields-rise-how-to-pick-between-a-variable-or-fixed-rate",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-15T16:21:55.000Z",
  "source": {
    "name": "Global News",
    "slug": "global-news",
    "url": "https://globalnews.ca/news/12103643/bond-yields-mortgages-variable-vs-fixed-rates/"
  },
  "original_language": "en",
  "account": "As bond yields rise, some Canadians are considering the option of variable rate mortgages, according to experts. Historically, fixed-rate mortgages have been preferred for their stability, but rising bond yields have led some borrowers to explore variable rates as a way to save money in the short term. Canada is currently experiencing a significant wave of mortgage renewals, with over one million households renewing or nearing renewal this year. While variable mortgages are directly tied to the Bank of Canada’s overnight rate, fixed-rate mortgages also respond to bond yields. In recent months, bond markets have been volatile, with multi-year highs in bond yields around the world, including Canada’s 10-year government bond yield hitting 3.85 per cent. As a result, the gap between fixed-rate and variable-rate mortgages has widened, with the lowest available rate for a five-year fixed mortgage being 4.34 per cent, compared to 3.43 per cent for a similar variable rate mortgage. This has made variable rates more appealing to borrowers looking to lower their monthly costs. However, fixed-rate mortgages offer certainty, with payments remaining the same throughout the term, while variable rates can offer lower costs but also bring the risk of higher payments if interest rates rise during the mortgage term. Most lenders allow borrowers to convert variable mortgages to fixed rates without a prepayment penalty, but switching to a higher fixed rate when the term ends may result in paying more. Experts advise borrowers to consider their risk tolerance and financial goals before deciding between variable and fixed rates.",
  "summary": "Canada is currently in the midst of the largest wave of mortgage renewals, with more than a million households either renewing or close to renewing their mortgages this year.",
  "key_points": [
    "Canadians considering variable rate mortgages as bond yields rise",
    "Fixed-rate mortgages offer stability, variable rates provide short-term savings",
    "Gap between fixed and variable rates widened to 1.91 percentage points"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Global News",
        "title": "As bond yields rise, how to pick between a variable or fixed rate mortgage?",
        "url": "https://urgent.news/2026/10/15/as-bond-yields-rise-how-to-pick-between-a-variable-or-fixed-rate-14739573",
        "published": "2026-10-15T16:21:55.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}