How many residential mortgages can I have?

The number of mortgages you can have is unlimited. Rather, people are constrained by their capacity to manage several mortgages or their financial status. First and second mortgages are two mortgages that are typically held concurrently on a same property.

What is a second mortgage Canada?

Second mortgage is a second loan or funding you take on your residential property. Interest rates on second mortgages are usually higher than first mortgages and you need to pay both your mortgages at the same time.

What is a conventional mortgage Canada?

A conventional mortgage in Canada is a loan where the down payment is at least 20% of the property's purchase price. This means that the loan amount is 80% or less of the property's value.

How long can you mortgage a home in Canada?

In Canada, you can mortgage a home for 25 years. If you are a first-time buyer or purchasing a new build you can mortgage it for 30 years. These rules took effect on December 15, 2024.

Can I buy a home with less than a 20% down payment?

The minimum amount you need for your down payment depends on the purchase price of the home. If your down payment is less than 20% of the price of your home, you'll typically need to buy mortgage loan insurance. If you're self-employed or have a poor credit history, your lender may require a larger down payment.

Should I choose a fixed rate or variable rate mortgage?

Interest rates either rise or fall. But a study suggests that homeowners with a variable mortgage fair better than a fixed rate one.

26 Jun Summer 2025 Mortgage Outlook: Will Falling Inflation Trigger Another Bank of Canada Rate Cut?

Posted at 17:52h in Mortgage Interest Rate by Satbir Bhullar

The summer of 2025 has arrived with a sense of cautious optimism for Canadian homebuyers and homeowners alike. With the Bank of Canada’s next policy announcement scheduled for July 30, speculation is mounting that a further rate cut may be on the horizon. Following the BoC’s 25 basis point reduction earlier this year, bringing the policy rate to 2.75%, Canadians are watching inflation indicators and economic data closely to gauge what comes next.

For those navigating the real estate market in Surrey, Abbotsford, and surrounding communities, these macroeconomic movements directly impact mortgage affordability, borrowing strategies, and homeownership decisions. In this blog, we explore what the summer outlook looks like for fixed and variable rates, what industry signals are suggesting, and how BC residents should position themselves in this shifting landscape.

What’s Driving Rate Cut Speculation?

Cooling Inflation

Canada’s annual inflation rate has continued its downward trajectory in Q2 2025. As of May’s CPI data, inflation hovered just above the Bank of Canada’s 2% target range, reflecting success in the central bank’s tightening measures throughout 2023 and early 2024. With inflation appearing increasingly controlled, economists now expect the BoC to continue easing monetary policy — a critical driver of mortgage rate trends.

Moderate Economic Growth

While employment remains stable, Canada’s GDP growth has slowed, particularly in consumer spending and construction. The Bank is likely to tread carefully, aiming to support recovery without reigniting inflation. Mortgage borrowers in Abbotsford and Surrey may benefit if rates continue to drop — either through lower fixed mortgage rates or more attractive variable-rate options.

For a deeper dive into how previous BoC decisions impacted monthly payments, read How the Recent Bank of Canada Rate Cut Affects Your Mortgage Payment

What Does This Mean for Fixed and Variable Rates?

Fixed Mortgage Rates: Already Trending Down

Bond yields — which influence fixed mortgage rates — have declined significantly over the past three months. Lenders have responded by trimming fixed rates across various terms. In some cases, 5-year fixed rates in BC have dropped below 4.5%, compared to over 5% in early 2024.

This trend is likely to continue in the short term, particularly if the BoC issues a dovish statement alongside the July announcement. Borrowers considering renewals or refinancing should monitor these changes closely, as opportunities to lock in better rates are emerging.

Explore this blog for actionable refinancing tips: Top Things Not to Do When Refinancing Your Mortgage

Variable Mortgage Rates: Watching the Central Bank

Most variable-rate mortgages are tied directly to the BoC’s overnight lending rate. A rate cut in July would provide immediate relief to current variable-rate holders and might attract new borrowers seeking more flexibility. However, economic uncertainty means that rate volatility still exists — making fixed-rate terms more appealing to conservative borrowers in 2025.

Need help choosing between the two? This article can guide you: Fixed Rate or Variable Rate Mortgage: Which One to Choose?

What Buyers in Surrey & Abbotsford Should Do Now

Get Pre-Approved Before Rates Shift

If you’re planning to buy a home this summer, getting mortgage pre-approval is essential. Not only does it clarify your budget, but it can also lock in today’s rate for up to 120 days — providing protection against upward rate adjustments if the BoC holds.

Learn how pre-approvals give you a head start: Benefits of Getting Mortgage Pre-Approval Before Home Hunting

Time Your Mortgage Renewal Wisely

Homeowners with mortgages maturing this year should stay informed about rate changes. If you’re nearing your renewal window (typically 120–180 days before maturity), you can proactively renegotiate or explore alternative lenders. Working with a local broker ensures you’re not missing competitive offers in a softening rate environment.

More renewal insights here: The Complete Guide to Mortgage Renewal in Abbotsford, Surrey & Nearby Areas

Consider Refinancing if You Locked at Peak Rates

If you locked into a 5-year fixed mortgage in 2022 or 2023, you may be paying over 5.5% or higher. As rates soften, refinancing may help lower your payment or consolidate high-interest debt. However, it’s crucial to evaluate prepayment penalties, remaining amortization, and the break-even timeline.

Explore this blog to help assess your situation: 5 Amazing Benefits of Refinancing Your Mortgage

Local Insights: How BC’s Market is Reacting

The real estate markets in Abbotsford and Surrey are experiencing a rebound in summer listings. Inventory has modestly increased, but demand remains steady, particularly in the townhome and detached home segments. While prices have stabilized from last year’s peaks, further interest rate cuts could reignite upward pressure by fall.

Buyers who act now — especially those with flexible mortgage terms — are positioned to benefit the most if rates drop again. However, affordability and qualification remain key considerations. Working with a broker who understands both the macro environment and local lender policies is critical in today’s market.

How Local Lenders in BC Are Responding

In Abbotsford, Surrey, and surrounding cities, local credit unions and mortgage lenders are adjusting to the broader economic landscape. Several BC-based lenders have already reduced posted 5-year fixed rates to stay competitive, particularly in the insured mortgage space where rates tend to be lower. Additionally, lenders are offering flexible options such as extended amortizations and cashback incentives — appealing tools for first-time buyers or households struggling with affordability.

These regional lenders also often offer more personalized underwriting — an advantage for those who are self-employed, new to Canada, or have unique income situations. Learn more about navigating such scenarios here: Mortgage for Self-Employed in Surrey

Buyer and Homeowner Strategy Breakdown

First-Time Buyers in 2025

With easing rates and federal policy shifts supporting housing affordability (like the recent GST exemption on new homes), first-time buyers may find 2025 a window of opportunity. Mortgage brokers can help them assess programs like CMHC incentives, extended amortizations, and local rebates.

Explore this related blog: The Ultimate Guide to First-Time Home Buyer Mortgages in BC

Current Homeowners: Renewal or Refinance?

If you’re a homeowner in BC with a mortgage renewal due in the next 6–12 months, now is the time to compare rates and avoid automatic renewals from your existing lender. You may save thousands by locking in a competitive offer or refinancing early.

This becomes especially relevant for those who locked in during the 2022–23 rate peak — refinancing into a lower rate could yield monthly savings or allow for debt consolidation.

Need help making that decision? The Complete Guide to Mortgage Refinancing in BC

FAQs: Summer 2025 Mortgage Trends in Canada

Q1. Will the Bank of Canada cut rates again this summer?

The next BoC announcement is scheduled for July 30, 2025. Given current inflation trends and slower economic growth, there’s speculation of another 25 basis point cut — but it’s not guaranteed. Watching inflation, jobs data, and global economic signals is key.

Q2. Should I choose fixed or variable right now?

It depends on your risk tolerance. Fixed rates offer stability and are currently declining. Variable rates could go lower if the BoC cuts again, but they come with exposure to future hikes. Discuss your scenario with a broker.

Compare the options here: Fixed Rate or Variable Rate Mortgage: Which One to Choose?

Q3. Is now a good time to refinance my mortgage?

Yes — especially if your current rate is over 5% and you still have 2–3 years left. But consider penalties and long-term savings. Use this mortgage refinance calculator to estimate potential gains.

Q4. How do rate cuts affect my mortgage affordability?

Lower rates mean reduced monthly payments and better mortgage affordability. For buyers, it increases how much you can borrow. For current homeowners, it can mean lower renewal or refinance costs.

Q5. What’s the best mortgage strategy for buyers in Surrey and Abbotsford?

Get pre-approved now to lock rates before further changes.
Work with a broker familiar with local lending trends.
Don’t wait for the lowest rate — focus on long-term affordability and flexibility.

Use tools like the Mortgage Affordability Calculator to assess your budget.

Final Thoughts

The second half of 2025 is shaping up to be a period of adjustment and opportunity for both homebuyers and mortgage holders. With inflation easing and the BoC’s rate outlook softening, there’s cautious optimism that affordability will continue to improve.

Whether you’re a first-time buyer, a homeowner considering renewal, or a household exploring refinancing options, working with a knowledgeable mortgage broker in Surrey or Abbotsford can help you stay ahead of market shifts. The right strategy today can lead to thousands saved over your mortgage term.

Get expert, personalized guidance: Contact Us or start your application here: Apply for a Mortgage

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