What Costco Gas Lines Can Teach You About Interest Rates

If you’re reading this while sitting in the lineup at Costco gas… you’re not alone 😅

And you’ve probably noticed — it’s creeping up again.

Here’s why that actually matters for your mortgage:

When gas prices go up, it pushes the cost of everything up — groceries, shipping, just life in general. That’s what drives inflation.

Now here’s where it connects:

When inflation stays higher than expected, the Bank of Canada usually holds off on cutting rates.That impacts variable rates, because they’re tied directly to the Bank of Canada’s decisions.

At the same time, the bond market reacts to inflation too — and that’s what fixed rates are based on. So fixed rates can move even before the Bank of Canada does anything.

So it’s not just “gas is expensive”…It’s:Gas ↑ → Inflation ↑ → Pressure on BOTH variable and fixed rates

This is why trying to “wait for the perfect rate” can feel like chasing your tail.

The better move is making sure your mortgage is set up properly so you’re not reacting every time something shifts in the world.

Anyway… if you’re still three cars back from the pump, you’ve got time to think about it 😄

But here’s the part people forget — if you’ve got a mortgage right now, you’re still in the game.

Yeah, things feel uncertain. Rates move, costs go up… it’s easy to feel like everything’s working against you.

But every payment you’re making is still building equity. It’s still moving you forward.

That’s a whole lot different than paying rent and covering someone else’s mortgage.

So honestly — good on you. You’re doing better than you probably think.

Hopefully this helped bring a little clarity.

Mortgage decisions can feel overwhelming — especially with everything changing around us — but having the right information makes a big difference.

If you’re thinking about your next move, here are a few ways to keep going:

👉 Book a Call👉 Start an Application👉 Explore More Blogs

Tonia Mercer, Mortgage Broker - The Mortgage Missus Inc.- Premiere Mortgage Centre Inc.

About the author,

Tonia Mercer is seasoned mortgage broker. She has been in the industry for 18 years, in 2021 she launched her own brokerage The Mortgage Missus Inc.. Recently, to provide a wider range of products to her clients she decided to partner with Premiere Mortgage Centre. She hit the ground running and is exciting about the opportunities the move will bring to her and her clients.

Tonia is passionate about financial education and believes that working with independent experts is the best way to get unbiased, professional advice. She has joined forces with local independent home and auto, financial advisor, legal, appraiser and real estate service providers. Effectively creating a concierge service for all things financial and real estate.

Tonia donates a portion of all mortgage revenue to Mercer's Mission, a street dog and cat feeding mission in the Dominican Republic. https://www.facebook.com/mercersmission 

She can be reached at tonia@themortgagemissus.ca