Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
Making sense of the Bank of Canada interest rate decision on March 12, 2025 + MORE Mar 13th
Today marks the seventh cut in a row for Canada’s benchmark borrowing rate, as our central bank does what it can to pad against tariff threats and possible recession.
The Bank of Canada (BoC) lowered its overnight lending rate—which lenders use to set their prime rates, and, by extensio.... More »
Latest in Mortgage News: Financial experts see less risk of an imminent recession + MORE Apr 27th
A recent survey of financial experts reveals a shift in recession expectations, showing a decrease in the likelihood of an imminent economic downturn. However, there is growing uncertainty regarding the timing and degree of anticipated Bank of Canada interest rate cuts..... More »
How much you need to earn to afford a home in Toronto and the GTA + MORE Mar 22nd
Looking at the Toronto housing market through a lens of percentages, shifting sales numbers and interest rates may be the go-to method for industry insiders, but for many run-of-the-mill buyers, there’s really one thing that matters: “What kind of home can I afford?”
To help answer that que.... More »
You bought a home—should life insurance be next? + MORE May 9th
Buying a home is one of the biggest financial milestones for young Canadians, and one of the riskiest. For many households, a mortgage becomes the single largest expense they’ll ever take on, often requiring two incomes to keep it manageable.
That reality is driving more homeowners to buy life .... More »
Mortgage borrowers renewing in 2025 to face an average $513 monthly payment increase: RBC + MORE Dec 6th
RBC also reported a sharp drop in remaining amortization periods thanks to Bank of Canada rate cuts in the fourth quarter..... More »
How To Navigate Three Common Mortgage Scenarios
– canadamortgagenews.ca
It’s a confusing time to be a homeowner. Rates are up, and everyone has an opinion on what will happen next. It’s easy to get sucked into social media rabbit holes and make decisions motivated by fear. But at times like these, it’s crucial to block out the noise and do what’s right for you.
To that end, here are three common scenarios along with my recommendations on how to save money and hang onto some peace of mind.
Scenario #1: My mortgage is up for renewal this year
The lowest rates you’ll find right now are 5-year fixed rates. That does NOT mean you should lock into a 5 year commitment. Rates will come down, and they could start as soon as Spring 2024. You don’t want to find yourself in a situation in a few years where rates have come down substantially and you’re still locked in for two more years at a much higher rate.
My advice? Go with a 3-year fixed rate term. I would recommend an even shorter term, but rates for a 1 or 2 year term are as high as 7%…
Canada’s mortgage stress test: Obsolete or still doing its job?
– canadianmortgagetrends.com
Originally introduced to mitigate borrower default risks in the event of rising interest rates, some brokers now argue that Canada’s mortgage stress test is no longer needed with interest rates presumably near their peak.
