Mortgage rates in Markham are no longer at the all-time lows that were seen in 2020–2021. As of early 2025, the leading lenders in Markham have variously quoted mortgage rates on 5-year fixed options ranging from about 5.3% to 5.9%, depending on the lender, your down payment, and your credit.
Increased rates translate to higher monthly payments. At $600,000, a mere 1% increase in mortgage rates could result in an additional $300–$400 a month! That said, it doesn’t mean that homeownership is impossible.
How Rising Rates Affect Your Mortgage?
Mortgage rates in Markham are not at the historic lows we had throughout 2020 and 2021. The average Markham mortgage rates for a 5-year fixed term, as of the beginning of 2025, are typically between 5.3%-5.9%, depending on your credit, down payment, and lender.
With rising rates, your monthly payments are sure to be higher. On a $600,000 mortgage example, if the rates increased by 1%, it could be an extra $300–$400 a month. However, this does not mean homeownership can’t happen for you.
Why You Need a Mortgage Broker in Markham?
A professional mortgage broker Markham is your greatest asset in today’s market. Unlike banks, brokers aren’t limited to working with one lender. They have multiple options from different institutions to help you receive competitive rates and terms that fit your situation.
They can also help with:
- Rate holds (locking in a lower rate before increasing)
- Negotiating better terms
- Getting access to alternative lenders if your bank does not approve your application
Key Steps to Strengthen Your Application
Before applying, you should prepare your financials. Lenders are more selective in a high-rate environment, so the better your profile, the more options you will have to choose from:
- Increase your credit score to an acceptable level by paying your bills on time and reducing your credit card balances.
- Save up for a larger deposit so you can reduce the amount of your mortgage.
- Decrease your debt-to-income ratio by paying off loans and not taking on any new debt.
Your mortgage broker will take you through all these steps to ensure your application is strong and lender-friendly.
Explore Different Mortgage Products
When rates are climbing, it can matter what degree of mortgage you take. Fixed rates are a good option for predictable expenses, while variable rates are lower up front, but are subject to the market.
Your mortgage broker in Toronto, Ontario, is there to help you determine what works for you based on your tolerance for risk and your home buying goals. Some purchasers decide on shorter mortgage terms or hybrid products, so they will be less tied to their mortgage lender.
When to Lock in a Rate
When it comes to rates, timing is of the utmost importance. If you think rates will rise, you can lock in your rate today and protect your monthly payments and obligations for some years. Most lenders allow 90 – 120 days to hold the rate. A broker will watch the market for you and let you know when to act.
Refinance or Renew Wisely
If you already have a home, and your mortgage is renewing, don’t just take your lender’s offer at face value. Shop around for current mortgage rates Markham with multiple lenders. You may be able to save money by refinancing, changing lenders, or changing the term.
Bonus Tip: Don’t Let High Rates Delay Your Purchase
Holding off on purchasing with hopes of rates dropping may be the right choice, but if home prices continue to climb, you may ultimately pay more. Buying now at a price you can afford with a mortgage you are comfortable with can often be better than chasing rate drops that may or may not happen. And please remember, if the rates drop later, you always have the option of refinancing down the road!
Final Thoughts: Take Control of Your Mortgage Journey
It is true, rates are higher; however, with the right plan and guidance, your mortgage can still benefit you. A qualified mortgage broker in Markham knows the local market, lenders and everything that it takes to get you approved with the best terms available.
Don’t let fluctuations in today’s market detour you from owning your home! Contact a trusted mortgage expert to compare rates and discuss your options, and move forward confidently! Whether you are purchasing, renewing or refinancing, this is your chance to make a good move in Markham’s home buying market.
