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Understanding the Impact of Summer Fluctuations on Your Mortgage

The summer season is arguably the hottest season for real estate (summer pun intended), due to its large array of market availability. While the market is hot during the summer season due to a number of factors, these factors each have an impact on the mortgage rates. Mortgage rates in Canada fluctuate throughout the year, and are determined by The Bank of Canada based on the status of the economy. However, they also fluctuate depending on the seasonal patterns that emerge within. If you have noticed any changes in your mortgage now that we have kicked off into summer, you are not alone! Today we will dive into the impact of seasonality on Canadian mortgage rates with a particular focus on summer fluctuations, as well as a few tips we have for you to help you navigate through the fluctuations with ease.


1. High Demand

The warmer weather tends to attract those to want to make larger changes in their lives, such as selling or buying. While the kids are out of school, and the weather is perfect for showings, the real estate market certainly flourishes in the warmer months. As a result of the higher demand from potential buyers and sellers, those with mortgages may feel the pressure from their mortgage like no other.


2. High Competition

Branching off of the fact that the summer months are the prime time for the real estate market, this causes an increased spike in competition among lenders. Lenders always strive to provide you with the best rate possible for your mortgage, however, this breeds a competitive environment when everyone is looking to buy or sell their homes in the summer.

With the vast amount of lenders offering you competitive rates and flexible loan options, it can be difficult to determine which lender you are looking to begin your home-purchasing journey with. As a result of this competitiveness amongst lenders, your mortgage rates may be different during the summer season, as each lender is competing to give you the best possible rate.


3. Market Trends

As we mentioned, The Bank of Canada plays a vital role in determining the main interest rates for the country, which will then impact your individual mortgage rate. Your mortgage rate may rise or fall depending on whether or not The Bank of Canada boosts the rates to battle inflation or other pending economic issues. From this, various mortgage rates may emerge. However, this all depends on the season and the time of year that they will see an impact. Make sure to keep your eye out for every Bank of Canada announcement, to determine when the best time for you to obtain a mortgage is! If you need an extra boost to stay on top of the ever-changing interest rates, check out our Instagram page, where we stay on top of the announcements from The Bank of Canada, for you.


4. Employment Trends

Seasonal employment sees a drastic increase in the summer months, which can directly correlate to your mortgage rate. Industries such as tourism and agriculture tend to thrive in the warmer months, offering their employers higher wages when the demand for labour is increased. As a result, the increased income often results in a greater demand for people looking to obtain a mortgage and directly impacts the existing mortgage rates and market.


How do I Navigate The Seasonal Fluctuations?

Now that we explored the various factors that impact your mortgage rate during the summer months, we aren’t going to leave you with just that! Navigating seasonal fluctuations comes with various tools and resources needed to ensure you are making confident decisions when it comes to managing your mortgage. Here are a few of our favourite tips to help you sail confidently through summer, with your mortgage rate being understood to the fullest extent.

  • Monitor Market Trends: Keeping tabs on the ever-changing real estate market, along with The Bank of Canada’s announcements will ensure you have full insight into the changes your mortgage rate may experience.

  • Plan Ahead: Understanding that the summer months come with a high demand for real estate, it is important to get the jump on things such as chatting with us to determine favourable opportunities you can embark on with your mortgage rate.

  • Work with a Mortgage Broker: Mortgage brokers have expert knowledge of market trends and lending processes, which can help you to get the most out of your mortgage rate.


Get in Touch with The Arise Mortgage Team

Between the increased demand, competition among lenders, market trends, economic factors, and seasonal employment influence that plays a role in the mortgage rates throughout the summer, we understand that it may be a lot to add to your plate all at once.

Let Arise Mortgage do the heavy lifting for you, so you can focus on enjoying your summer to the fullest.


Get in touch with our team today!

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