What’s All This Mortgage Talk in the Media this Week?

Marci • October 7, 2016

Good Afternoon,

For the past few days you may have heard discussions and reports about mortgages in the media! This week the Federal Minister of Finance announced some sweeping changes to Mortgage Regulations in Canada. These changes are significant and will no doubt have an impact on many borrowers as well as the Canadian Real Estate Market AND the mortgage lending industry as a whole.

The immediate response from many within my industry has been a shocking doom and gloom attitude. It has by far been one of the most interesting weeks for media coverage since I launched my Mortgage Broker business in 2007. I have been in this world of lending since the early 90’s (YIKES) and I have seen many ups and downs. With all this flurry of news over the past few days, I can’t help but think to myself “this too, shall pass”.

Since Monday morning, I have been busy reading and trying to understand the true impact of all of these new rules and regulations. There are many opinions floating around and one must be careful when reading the various media outlet versions of the changes. It can seem scary and perhaps like the “sky is falling”!! I am keeping a positive attitude. Change is inevitable and this is not the first time we have seen sweeping new regulations. We will get accustomed to a new reality in mortgage lending and life will go on! That is one thing I can be certain about.

The key change that will affect you as a homeowner or potential homeowner, is that if you’re applying for a new high ratio mortgage or even applying for conventional mortgage financing*, you will likely need to qualify for the financing at a rate about two percent higher (4.64%) than what you’ll actually pay. The government calls this “stress testing”. The intention is that if borrowers can still afford the mortgage at this much higher rate, if or when rates jump to that higher rate, over the next few years, the mortgage is “safe” from default.

What does this really mean? For a purchase price of say $750,000 and 10% down (or $75,000) under the current rules, a household would need $130,000 per year in combined income to qualify. Under the new rules, that same family will need $160,000 in annual household income to qualify for this same mortgage. The new underwriting rules will lower borrowing ability by between 18% and 24% on average. For some borrowers, this limitation may not be a bad thing as it will equip them for future higher rates.

There are other changes as well which limit the ability of Non-Bank lenders to continue to operate in the same very successful manner that they have been for the last several years. This point is more worrisome as it will lead to some of these great Broker focused lenders limiting their product offerings. The net result of this will be less choice for consumers (now limited for some products to just the BIG banks and Credit Unions) and higher costs.

Here is an excellent clip from BNN that helps explain this aspect of the changes.

This is a simplified explanation (to say the least) and these are just two of several changes announced. The full announcement can be found HERE!

Please call me or EMAIL  if you want to discuss the changes. All of this will affect everyone differently….a personal review is needed!!!

When I really think about all of this (and trust me I have been) – Nothing much at all has changed! My job has been and will continue to be to help my clients with mortgages . I offer choice, unbiased advice and guidance. I work with many of the Big Banks, several Credit Unions and the Broker Lenders (also called Monolines) as well as Private Lenders.

My access to lenders has not changed at all with the October 3rd announcement. I am passionate about what I do and honestly, I am a self proclaimed “Mortgage Geek”. Please reach out and let’s discuss your situation and your plan moving forward. Don’t panic – call me today for a review! I love doing Mortgage math!!

Happy Thanksgiving…Enjoy the Long Weekend. 

Marci

* High ratio = 5 – 20% DOWN PAYMENT

* Conventional = 20% or greater DOWN PAYMENT

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How to Finance a Spousal Buyout After Separation or Divorce

By Marci Deane • November 4, 2026
Mortgage Options During Divorce or Separation: What You Should Know If you’re going through—or considering—a divorce or separation, you may not realize that there are mortgage solutions specifically designed to help one party keep the home . For many people, the family home is their largest asset and where most of their equity is tied up. In situations like this, a spousal buyout program can allow one person to refinance the property and buy out the other party’s share—often up to 95% of the home’s value . This option can work whether you want to keep the home or your former partner does. What Is the Spousal Buyout Program? The spousal buyout program is a refinancing option that allows one owner to purchase the other owner’s share of the property as part of a separation or divorce settlement. In some cases, it can also be used to pay off jointly held debts, as outlined in a legal agreement. Below are some of the most common questions about how the program works. Is a finalized separation agreement required? Yes. Lenders require a signed and finalized separation agreement that clearly outlines how assets and debts are to be divided. This document is essential for approval. Can the funds be used for renovations or personal debts? No. Funds from a spousal buyout can only be used to: Buy out the other owner’s share of equity Pay off joint debts specifically listed in the separation agreement They cannot be used for renovations, personal loans, or unrelated expenses. How much equity can be accessed? The maximum amount available is the amount required to: Buy out the other party’s agreed-upon share of equity Pay off any joint debts listed in the agreement This amount cannot exceed 95% loan-to-value . What is the maximum loan-to-value allowed? The maximum loan-to-value is the lesser of : 95%, or The remaining mortgage balance plus the required buyout and joint debt payout The property must be the primary owner-occupied residence . Do all parties need to be on title? Yes. All individuals involved in the buyout must currently be registered on title. Your solicitor will confirm this through a title search. Does this only apply to married or common-law couples? No. While commonly used for married or common-law couples, the program may also apply to siblings or friends who jointly own a property and need one party to exit the mortgage. These cases are typically reviewed on an exception basis and require insurer approval. If no separation agreement exists, the purchase contract must clearly outline the buyout terms. Is a full appraisal required? Yes. A physical, on-site appraisal is required to confirm the property’s value before the mortgage can be finalized. Final Thoughts This overview covers some of the most common questions about mortgage options during separation or divorce, but every situation is different. Working with an independent mortgage professional gives you access to multiple lenders, specialized programs, and unbiased advice—so you can clearly understand your options and choose what’s best for your future. If you’re navigating a separation and need guidance around keeping or selling the home, feel free to connect anytime. All conversations are handled with discretion and confidentiality, and I’d be happy to walk you through your options.

Bank of Canada Raises Rate to 2.5% — October 28, 2026

By Marci Deane • October 28, 2026
On October 28, 2026, the Bank of Canada raised its key interest rate by 0.25%, bringing it to 2.5%. If you have a mortgage, are shopping for a home, or have a renewal coming up, this decision matters. Here is a plain-language look at what changed, why it happened, and what it could mean for you.

How to Legally Assign a Construction Mortgage

By Marci Deane • October 21, 2026
Why More Mortgage Options Matter—Especially for Assignment Purchases One of the biggest advantages of working with an independent mortgage professional is access to choice. Instead of being limited to one lender and one set of products, mortgage brokers work with multiple lenders—each with different guidelines, risk tolerances, and mortgage solutions. That flexibility becomes especially valuable when your situation doesn’t fit neatly into a “standard” box. A great example of this is purchasing new construction through an assignment contract . Why Assignment Purchases Can Be Challenging Assignment purchases are often viewed as higher risk by traditional lenders. Rather than declining these deals outright, many lenders quietly make them difficult by adding layers of conditions, restrictions, or uncertainty. This can lead to delays, frustration, or financing falling apart late in the process. The Good News There are lenders—available exclusively through the broker channel —that have clear, favourable policies for assignment purchases. With the right lender and proper planning, these transactions are absolutely doable. Typical Financing Requirements for Assignment Purchases While every situation is unique, many lenders that allow assignment financing look for the following: Standard purchase qualification, including income verification, credit, and down payment Assignments accepted at either the original purchase price or current market value Minimum 620 credit score , with no prior bankruptcies or consumer proposals The full down payment must come from the purchaser —seller incentives cannot be used Required Documentation To secure financing, lenders typically require: The original purchase agreement signed by all parties The MLS listing (if applicable) The assignment agreement signed by the builder, original purchaser, and new buyer Any side agreements outlining changes to the purchase price A full appraisal to confirm value This list isn’t exhaustive, but it highlights that while assignment purchases require more coordination, they are very achievable with the right lender and guidance. Final Thoughts Assignment contracts can open doors to great opportunities—but only if your financing supports the transaction. This is where access to multiple lenders and specialized policies makes a real difference. If you’re considering purchasing new construction through an assignment, or if you’d like to explore more traditional purchase options, feel free to connect anytime. I’d be happy to walk you through the mortgage products available and help you choose an option that doesn’t limit your financing possibilities.