U.S. President Trump has already proven unpredictable and willing to disrupt established trade agreements and long-standing business and diplomatic ties over his fiscal vision.
Amid the resulting economic upheavals, you may be struggling to land on your ideal mortgage term and rate choice to help you save the most or sleep peacefully at night (preferably both).
Fixed, Flexible, or Trump-Proof?
Choosing between a variable, 3-year fixed, or 5-year fixed mortgage rate and term isn't just about your best rate — it's about how much flexibility or certainty
With less than 4 years left in Trump's term, here's a practical way to look at your choices to help you through these uncertain times with (mortgage savings) confidence.
3-Year Fixed: Gets You Through Most of It
Most of 'it' means Trump's remaining term.
With a 3-year fixed-rate choice, you would have rate and payment stability while markets try to work out their response to Trump's policies, including his global trade war. It would allow time for consumer, business, government, and world economic results to clock in.
If trade disruption sparks a recession in Canada, rates may fall and remain low in time for your renewal. However, Trump's tariff stance may also raise inflation, which may eventually provoke interest rate hikes.
Also, within those 3 years, Trump may need to re-evaluate his unorthodox policies if an upcoming election jeopardizes his political party and enact changes that could stabilize market mayhem.
Your renewal timing would then come to a resting point before more potential political (and rate market) upheaval with the next U.S. election.
The bottom line is that with a 3-year term, you'd avoid any rate volatility for a substantial period. Your next term and rate decision could come at a time when economic disruption may have already come and gone.
5-Year Fixed: Takes You Past the Drama
A 5-year fixed-rate mortgage lets you lock in your rate and ride out whatever Trumpian headlines come your way to land squarely about one year into the next U.S. presidential term.
You won't need to think about renewing until after the dust settles from Trump's current term. And you'll have peace of mind and protection from any potential rate hikes.
So, if you're looking for more certainty and less drama in these rocky times, this term choice might be your most comfortable bet.
5-Year Variable: Keeps Your (Savings) Options Open
A variable-rate mortgage keeps your savings options open and lets you take advantage if rates do shift down further — which could happen if the current trade turmoil sends Canada into a recession.
Instead of locking in a rate, you stay agile, ready to benefit from more budget room if rates dip, assuming you have floating payments (an ARM).
If you have fixed variable payments (a VRM through a big bank), your amortization shrinks with every interest rate cut as more of your payment goes toward your mortgage principal.
Does it look like interest rates are about to climb? You can always lock into a fixed rate with no penalty (most variable mortgages have this feature).
In fact, riding a variable rate now may allow you to lock into a lower fixed rate later if you feel that interest rates have room to decline. This strategy, however, would require a close watch of the markets (and perhaps the help of an expert mortgage broker) to make a well-timed, budget-savvy switch to a fixed rate.
So, if you're comfortable monitoring the market and can handle a bit of fluctuation, a variable rate could be the right mortgage savings solution for you during these tumultuous years.
One term you can trust to help you save.
True North Mortgage — a top brokerage (and 100% Canadian) for over 18 years —offers unbiased broker advice and great mortgage rates to help you make an informed decision and potentially save thousands during your term (and during Trump’s term).
True North’s best 3-year and 5-year fixed rates are currently the same, which could help ease your decision on how long to lock in (if fixed is your preferred choice). Their competitive variable-rate discount could also offer your ideal fit — and regardless of which rate type you choose, you’ll get flexible mortgage options to help you save on fees or if you need a change later.
2028 feels far away, but True North can help you save today with your best mortgage solution.
Looking for less ‘reality show’ and more reality? Focus on getting your best rate and term to save more — with an expert True North broker, in your preferred language.
Contact Canada's No. 1 Mortgage Broker today.