The likely immediate market effect is a greater reluctance among variable-rate holders to switch towards fixed-rate products – a phenomenon that other observers have already raised alarms about.

“For all the customers who are calling specific to their variable, I’m still not seeing a large amount of them switch to a fixed rate, specifically the ones that have the four- and five-year terms,” Chris Allard of Smart Debt Mortgages recently told Canadian Mortgage Professional. “They don’t seem to pull the trigger to make the switch to a fixed rate.”

This hesitation will almost certainly place even greater fiscal pressure on variable-rate holders, who will see rate-hike-driven payment increases in the near future.

In turn, the market might be seeing the emergence of more measures to help these borrowers.

“The other thing you’re seeing is a lengthening of amortization schedules,” Wolfe said. “So last year or prior, maybe 1% of mortgages had a 30-year term and now that’s up to 20%, so what you’re seeing is banks extending term to help borrowers with payment.”