How a secondary suite can make buying a home more affordable in Ontario + MORE Aug 28th

Wall Street ends lower after Fed Chair Warsh reaffirms inflation fight  ReutersMore U.S. rate hikes possible with inflation still elevated, Federal Reserve chair Kevin Warsh says  CBCU.S. Stocks Fall After Warsh Speech Boosts Bond Yields  WSJMcLister: The Warsh effect on mortgage rates in Canada  Financial PostThe bond market prepares for a hike to interest rates, while US stocks drift lower  The Globe and Mail

Mortgage arrears continued to climb in the third quarter, particularly in Toronto and Vancouver, though CIBC says strong borrower equity is keeping actual losses contained.

Whether you’re a newer investor or more experienced, there are undoubted benefits to letting out units as a duplex, triplex, or fourplex. Generally speaking, more units means higher returns—assuming the building is large enough to accommodate such a renovation. For homeowners, adding a secondary suite can also help offset mortgage and other housing costs, making a property more affordable to own.

Some properties are readymade with multiple units, while others require work to convert them. A ready-made duplex typically commands a premium in the purchase price compared to a single residential home.

The most common example of a conversion in Canada is splitting a residential home into a duplex, with the second unit being a rented basement with a separate entrance. This is a common way for buyers to narrow the affordability gap, a strategy known as “house hacking.” By living in one unit and renting out another, a homeowner can use rental income to help cover the mortgage and other ongoing housing costs…

RBC’s mortgage portfolio grew 5% year over year as quarterly growth accelerated, though loan-to-value ratios and delinquencies moved higher.

The Bank of Canada is gearing up to make an announcement about its overnight rate on September 2, 2026.

The last announcement came in July, when the rate was held at 2.25%. It has remained unchanged since October 2025, when it came down from 2.50%.

MoneySense spoke to Ratehub’s VP of Mortgage, Jamie David, about what Canadians can expect in September and how they should adapt. 

What to expect from the Bank of Canada interest rate update:

“The Bank of Canada is widely expected to keep its overnight rate unchanged at the September announcement, even as the trade war with the U.S. escalates,” noted David. The Consumer Price Index (CPI) rose from 2.8% to 3% in July. With that considered, the expert believes policymakers have little reason to consider a cut.

“The Bank is currently in a bind, with escalating trade tensions threatening to slow economic growth, while inflationary pressures weigh against any easing. The Bank is likely to hold rates steady as it assesses the broader impact of the escalating trade war on both inflation and economic growth…