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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First-Time Buyer? Here’s How to Tell If You’re Ready

By Marci Deane • June 3, 2026
Ready to Buy Your First Home? Here’s How to Know for Sure Buying your first home is exciting—but it’s also a major financial decision. So how can you tell if you’re truly ready to take that leap into homeownership? Whether you’re confident or still unsure, these four signs are solid indicators that you’re on the right path: 1. You’ve Got Your Down Payment and Closing Costs in Place To purchase a home in Canada, you’ll need at least 5% of the purchase price as a down payment. In addition, plan for around 1.5% to 2% of the home’s value to cover closing costs like legal fees, insurance, and adjustments. If you’ve managed to save this on your own, that’s a great sign of financial discipline. If you're receiving help from a family member through a gifted down payment , that works too—as long as the paperwork is in order. Either way, having these funds ready shows you’re prepared for the upfront costs of homeownership. 2. Your Credit Profile Tells a Good Story Lenders want to know how you manage debt. Before they approve you for a mortgage, they’ll review your credit history. What they typically like to see: At least two active credit accounts (trade lines) , like a credit card or loan Each with a minimum limit of $2,000 Open and active for at least 2 years Even if your credit isn’t perfect, don’t panic. There may still be options, such as using a co-signer or working on a credit improvement plan with a mortgage expert. 3. Your Income Can Support Homeownership—Comfortably A steady income is essential, but not all income is treated equally. If you’re full-time and past probation , you’re in a strong position. If you’re self-employed, on contract, or rely on variable income like tips or commissions, you’ll generally need a two-year history to qualify. A general rule: housing costs (mortgage, taxes, utilities) should stay under 35% of your gross monthly income . That leaves plenty of room for other living expenses, savings, and—yes—some fun too. 4. You’ve Talked to a Mortgage Professional Let’s be real—there’s a lot of info out there about buying a home. Google searches and TikToks can only take you so far. If you're serious about buying, speaking with a mortgage professional is the most effective next step. Why? Because you'll: Get pre-approved (and know what price range you're working with) Understand your loan options and the qualification process Build a game plan that suits your timeline and financial goals The Bottom Line: Being “ready” to buy a home isn’t just about how much you want it—it’s about being financially prepared, credit-ready, and backed by expert advice. If you’re thinking about homeownership, let’s chat. I’d love to help you understand your options, crunch the numbers, and build a plan that gets you confidently across the finish line—keys in hand.

Home Reno Dreams? Let’s Talk Mortgage Financing

By Marci Deane • May 27, 2026
How to Use Your Mortgage to Finance Home Renovations Home renovations can be exciting—but they can also be expensive. Whether you're upgrading your kitchen, finishing the basement, or tackling a much-needed repair, the cost of materials and labour adds up quickly. If you don’t have all the cash on hand, don’t worry. There are smart ways to use mortgage financing to fund your renovation plans without derailing your financial stability. Here are three mortgage-related strategies that can help: 1. Refinancing Your Mortgage If you're already a homeowner, one of the most straightforward ways to access funds for renovations is through a mortgage refinance. This involves breaking your current mortgage and replacing it with a new one that includes the amount you need for your renovations. Key benefits: You can access up to 80% of your home’s appraised value , assuming you qualify. It may be possible to lower your interest rate or reduce your monthly payments. Timing tip: If your mortgage is up for renewal soon, refinancing at that time can help you avoid prepayment penalties. Even mid-term refinancing could make financial sense, depending on your existing rate and your renovation goals. 2. Home Equity Line of Credit (HELOC) If you have significant equity in your home, a Home Equity Line of Credit (HELOC) can offer flexible funding for renovations. A HELOC is a revolving credit line secured against your home, typically at a lower interest rate than unsecured borrowing. Why consider a HELOC? You only pay interest on the amount you use. You can access funds as needed, which is ideal for staged or ongoing renovations. You maintain the terms of your existing mortgage if you don’t want to refinance. Unlike a traditional loan, a HELOC allows you to borrow, repay, and borrow again—similar to how a credit card works, but with much lower rates. 3. Purchase Plus Improvements Mortgage If you're in the market for a new home and find a property that needs some work, a "Purchase Plus Improvements" mortgage could be a great option. This allows you to include renovation costs in your initial mortgage. How it works: The renovation funds are advanced based on a quote and are held in trust until the work is complete. The renovations must add value to the property and meet lender requirements. This type of mortgage lets you start with a home that might be more affordable upfront and customize it to your taste—all while building equity from day one. Final Thoughts Your home is likely your biggest investment, and upgrading it wisely can enhance both your comfort and its value. Mortgage financing can be a powerful tool to fund renovations without tapping into high-interest debt. The right solution depends on your unique financial situation, goals, and timing. Let’s chat about your options, run the numbers, and create a plan that works for you. 📞 Ready to renovate? Connect anytime to get started!

Fixed vs. Variable Mortgage Rates in Canada

By Marci Deane • May 20, 2026
Fixed vs. Variable Rate Mortgages: Which One Fits Your Life? Whether you’re buying your first home, refinancing your current mortgage, or approaching renewal, one big decision stands in your way: fixed or variable rate? It’s a question many homeowners wrestle with—and the right answer depends on your goals, lifestyle, and risk tolerance. Let’s break down the key differences so you can move forward with confidence. Fixed Rate: Stability & Predictability A fixed-rate mortgage offers one major advantage: peace of mind . Your interest rate stays the same for the entire term—usually five years—regardless of what happens in the broader economy. Pros: Your monthly payment never changes during the term. Ideal if you value budgeting certainty. Shields you from rate increases. Cons: Fixed rates are usually higher than variable rates at the outset. Penalties for breaking your mortgage early can be steep , thanks to something called the Interest Rate Differential (IRD) —a complex and often costly formula used by lenders. In fact, IRD penalties have been known to reach up to 4.5% of your mortgage balance in some cases. That’s a lot to pay if you need to move, refinance, or restructure your mortgage before the end of your term. Variable Rate: Flexibility & Potential Savings With a variable-rate mortgage , your interest rate moves with the market—specifically, it adjusts based on changes to the lender’s prime rate. For example, if your mortgage is set at Prime minus 0.50% and prime is 6.00% , your rate would be 5.50% . If prime increases or decreases, your mortgage rate will change too. Pros: Typically starts out lower than a fixed rate. Penalties are simpler and smaller —usually just three months’ interest (often 2–2.5 mortgage payments). Historically, many Canadians have paid less overall interest with a variable mortgage. Cons: Your payment could increase if rates rise. Not ideal if rate fluctuations keep you up at night. The Penalty Factor: Why It Matters More Than You Think One of the biggest surprises for homeowners is the cost of breaking a mortgage early —something nearly 6 out of 10 Canadians do before their term ends. Fixed Rate = Unpredictable, potentially high penalty (IRD) Variable Rate = Predictable, usually lower penalty (3 months’ interest) Even if you don’t plan to break your mortgage, life happens—career changes, family needs, or new opportunities could shift your path. So, Which One is Best? There’s no one-size-fits-all answer. A fixed rate might be perfect for someone who wants stable budgeting and plans to stay put for years. A variable rate might work better for someone who’s financially flexible and open to market changes—or who may need to exit their mortgage early. Ultimately, the best mortgage is the one that fits your goals and your reality —not just what the bank recommends. Let's Find the Right Fit Choosing between fixed and variable isn’t just about numbers—it’s about understanding your needs, your future plans, and how much financial flexibility you want. Let’s sit down and walk through your options together. I’ll help you make an informed, confident choice—no guesswork required.