• RBC, TD, and CIBC are predicting that rates won’t change in 2026
• BMO predicts potentially one small rate cut (to 2.00%) early next year, but only if the economy slows down a lot
• Scotiabank has a different opinion, predicting that rates could go up again by late 2026 if inflation rises – their forecast is 2.75% by the end of the year

If you’re holding a variable-rate mortgage, your rates will likely stay relatively the same, so your payments probably won’t change much.

For fixed-rate mortgages, they may rise a bit. This won’t be due to the Bank of Canada raising rates, but because of market forces like inflation and bond yields. Expect 5-year fixed mortgage rates to hover around 5% in 2026.

We believe so. Lower interest rates will help lower monthly mortgage payments, and in many places around the Greater Toronto area, you can find homes at prices lower than they were 5 years ago.

However, when interest rates fall, real estate markets tend to rise as more buyers take advantage of cheaper financing. It’s important to do the math and see how your potential mortgage payment works out depending on different scenarios.

If you’re buying:

• This is a more predictable market. You likely won’t be dealing with rising rates.
• Since rates aren’t likely to drop much further, waiting may not help.
• Talk to a mortgage broker about variable vs. fixed options to understand the pros and cons for your situation.

If you’re selling:

• More listings are hitting the market in Ontario, and with the spring market approaching, that means more competition.
• You should price realistically and stage your home well to stand out.
• If Scotiabank is right and rates go up later this year, buyers may pull back. This means the first half of 2026 could be your best window to sell. 

With interest rates expected to stay stable through 2026, this is a smart time to make a plan.

At RE/MAX Team Paliwal, we take a hands-on, no-pressure approach to guiding you through the market. We don’t just send you listings or quote headlines. We listen to your goals, review your budget, and show you real options that fit your timeline and lifestyle.

• Thinking of buying? We’ll help you get pre-approved, understand mortgage trends, and find properties worth your time.
• Thinking of selling? We’ll assess your home’s value, walk you through staging and pricing, and build a marketing plan that gets results.
• Unsure what to do? We’ll give you honest advice, even if the right move is to wait.

We’ve helped hundreds of GTA families and investors work through good and bad markets, and we’re ready to help you make smart and safe decisions. Book your free, personalized consultation today, in person or by video call.