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“Flexing Into a Variable Rate: How My Gym Buddy Almost Ruined My Mortgage”

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Not everyone can give “good” advice!

There I was, minding my business on the rowing machine, when Chad—let’s call him Chad because of course his name is Chad—leans over between sets and drops the kind of unsolicited financial advice usually reserved for Reddit threads and that one uncle at family dinners.

“Bro, don’t even look at fixed rates. Variable is the move. It’s what all the smart investors are doing. Trust me.”

Ah yes, trust me—the two least comforting words in the world of mortgage financing.

The Seduction of the Variable Rate

At first glance, variable rates are tempting. They’re like that gym membership you sign up for in January—lower monthly costs at the start, promises of flexibility, and a vague sense of superiority over your friends locked into fixed terms.

“Why pay more?” Chad asked while curling his body weight and ego simultaneously. “Ride the wave, bro. Rates always drop.”

Spoiler: they don’t and they didn’t.

Fast-Forward: The Bank of Canada Has Entered the Chat

Turns out, the only thing variable about my new mortgage was how much anxiety it gave me.

The Bank of Canada began hiking rates faster than Chad can shotgun a protein shake. What started as a “smart move” quickly turned into me calculating my payment increases with the same dread most people reserve for root canals and tax season.

Each rate hike felt like leg day—painful, recurring, and impossible to skip.

Here’s the Thing: Mortgages Aren’t One-Size-Fits-All

Variable rates can absolutely make sense—for some borrowers. But the right choice depends on:
✔️ Your income stability
✔️ Your risk tolerance
✔️ How long you plan to stay in the home
✔️ Whether you’ve budgeted for potential rate increases
✔️ If you like your heart rate spiking for reasons other than cardio

Just because someone made money on a variable rate five years ago doesn’t mean it’s the right fit for you now—especially in today’s economic climate where the only thing predictable is unpredictability.

Real Advice Needs More Than Gym Talk

A mortgage is probably the biggest financial commitment of your life. Maybe don’t base it on locker room banter.

Talk to a licensed mortgage professional—someone who actually knows how to spell “amortization,” understands how the prime rate works, and isn’t judging your deadlift form.

The Happy Ending (with a few stress sweats)

Eventually, I refinanced. I got the right product for me this time. One that aligned with my actual financial goals—not Chad’s dream of becoming the next big real estate mogul-slash-podcast host.

I still see Chad at the gym. He’s doing well.

Last I heard, he’s giving advice on crypto & options!

Variable rates aren’t bad—blindly taking them is.

If you’re going to gamble, at least know the odds. And maybe get your mortgage advice from someone who wears a suit (or pants at least) and understands the bond market, not just someone who owns a shaker bottle collection.

The Silver Lining: How Potential U.S. Tariffs Could Present Opportunities in the Canadian Mortgage Market

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With speculation that the U.S. may impose new tariffs on Canadian goods, there’s been much discussion about the potential economic impact. While tariffs can introduce challenges, they can also create opportunities—particularly in the housing and mortgage markets. Rather than viewing this as a period of uncertainty, homebuyers can take advantage of shifting market conditions to make smart financial moves.

The Potential Economic Impact of U.S. Tariffs

Tariffs on Canadian exports—such as lumber, aluminum, steel, and agricultural products—may lead to price adjustments and shifts in business investment. However, these changes also open the door for domestic industries to thrive, potentially leading to job growth in certain sectors and opportunities in the housing market.

How the Canadian Mortgage Market Could Benefit

While tariffs might influence economic conditions, they also bring some potential positives to the mortgage landscape:

  1. Lower Interest Rates Could Be on the Horizon
    If tariffs slow economic growth, the Bank of Canada (BoC) may choose to keep interest rates low or even reduce them to stimulate spending. This could lead to more affordable mortgage rates, benefiting both first-time homebuyers and those looking to refinance.
  2. More Competitive Housing Prices
    A slight cooling in certain housing markets could result in more balanced pricing, giving buyers greater negotiating power. Those who have been waiting on the sidelines may find this an opportune time to enter the market with less competition and better deals.
  3. Increased Government Support for Homebuyers
    Historically, economic shifts have led to government initiatives aimed at supporting homebuyers. This could mean more incentives for first-time buyers, improved access to mortgage products, or policies designed to encourage homeownership and affordability.
  4. A Boost for Domestic Growth As certain industries adjust to new trade dynamics, Canada may see increased investment in local production and job creation. This can provide long-term economic stability, ultimately benefiting the housing sector and consumer confidence.

How Homebuyers Can Take Advantage

For those considering purchasing a home, here’s how you can use these shifts to your advantage:

  • Take Advantage of Low Rates: If interest rates remain stable or decrease, locking in a favorable mortgage rate can lead to long-term savings.
  • Explore New Market Opportunities: A changing real estate landscape means more opportunities for buyers who are flexible and prepared.
  • Benefit from Government Programs: Stay informed about potential policy changes designed to make homeownership more accessible.
  • Work with a Mortgage Broker: A knowledgeable professional can help navigate changing conditions and find the best financing options.

Final Thoughts

Rather than viewing potential U.S. tariffs as a cause for concern, this period presents unique opportunities for homebuyers and investors. The Canadian mortgage market is resilient, and with careful planning and a proactive approach, buyers can find themselves in a strong position to achieve their homeownership goals.

If you’re looking to make the most of these changes, reach out to a mortgage professional, such as myself, to explore your options and secure the best possible outcome for your financial future. The current geopolitical climate, although uncertain, can lead to opportunity.  This doesn’t mean one should not be mindful of the potential obstacles and challenges that lay ahead when it comes to your mortgage and home finances; but, we should be aware that there may be opportunity to.

Taking the lead can help to offset these challenges and keep you firmly planted in the driver’s seat.  Our primary goal for any client who reaches out is to review the current situation and anticipate future scenarios so that we can prepare our clients with options that are meaningful to their personal circumstances.

Kari Gares

Broker Owner

Verico Mortgage House – Kari Gares