What do Canadians do when interest rates are high?

OTTAWA, ON, Sept. 8, 2026 /CNW/ -- Since 2022, Canadian mortgage consumers have shifted away from fixed-rate mortgages with terms of five years or longer toward shorter fixed-rate terms and variable-rate mortgages. While these products may offer greater flexibility, they also increase exposure to future interest rate changes.

Aled ab Iorwerth, Deputy Chief Economist, CMHC

In his latest article, What do Canadians do when interest rates are high?, Aled ab Iorwerth, Deputy Chief Economist, Canada Mortgage and Housing Corporation (CMHC), examines how mortgage term choices affect not only borrowing costs, but also how interest rate risk is distributed across households and the broader financial system. The article also explores how mortgage systems differ across countries and how those differences affect mortgage consumers when interest rates change.

Quote:

"Mortgage term choices are about more than securing the lowest borrowing cost today. As economic uncertainty increases, mortgage terms can have important implications for a household's financial resilience and its exposure to future interest rate changes."
 – Aled ab Iorwerth, Deputy Chief Economist, CMHC

Read the full article on CMHC's website.

Canada Mortgage and Housing Corporation (CMHC) is a federal Crown corporation and the foundation of Canada's housing system. For over 80 years, CMHC has supported the functioning of housing markets across the country through housing finance solutions -- including mortgage loan insurance and securitization -- while providing trusted, unbiased data, research and market intelligence to inform policy and decision making. Through its national presence, deep expertise in housing economics and finance, and a system-wide perspective, CMHC helps foster a more stable, well-functioning housing market that supports households, communities and the broader economy.

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SOURCE Canada Mortgage and Housing Corporation (CMHC)

To request an interview with Aled ab Iorwerth, Deputy Chief Economist, CMHC, please contact CMHC Media Relations: [email protected]