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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Bank of Canada Holds Rate at 2.25% — September 2, 2026

By Marci Deane • September 2, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. While Canada's economic recovery is broadening, a new layer of uncertainty has entered the picture. Here is what happened and what it means for your mortgage.

What Older Canadians Should Know About Mortgage Financing

By Marci Deane • August 26, 2026
Retirement doesn’t always mean a mortgage-free life anymore. And that’s okay. Between higher home prices, rising living costs, and longer life expectancy, many Canadians are choosing to retire with a mortgage or refinance later in life to create more flexibility. The goal isn’t perfection. It’s having options that actually support the life you want to live. If you’re thinking about how a mortgage fits into your retirement years, you’re not alone—and you’re not out of options. Why work with an independent mortgage professional? Because retirement financing is not one-size-fits-all. Unlike a single bank, an independent mortgage professional can look across multiple lenders and solutions to find what truly fits your income, equity, and long-term plans—not just what one institution offers. Mortgage options available in retirement Traditional Mortgage Solutions Many retirees still qualify for standard mortgages. Pension income, investment income, and other retirement sources can often be used to support an application. If you have good equity and solid credit, this is often the lowest-cost option. Reverse Mortgages For homeowners 55+, a reverse mortgage can unlock tax-free equity from your home with no monthly payments required. There’s no income verification or medical questions, making it a helpful option for those who want to improve cash flow while staying in their home. Home Equity Line of Credit (HELOC) A HELOC allows you to access your home equity as needed and only pay interest on what you use. Many retirees appreciate the flexibility and like consolidating income and expenses in one place. Private Financing Sometimes life throws a curveball. If timing, income, or credit create challenges, private financing can act as a short-term bridge. It’s not usually the first choice, but it can provide solutions when traditional lenders can’t. If you’re approaching retirement—or already there—and wondering how your mortgage fits into the picture, let’s talk. A clear plan can make retirement feel a lot more secure and a lot less stressful.

What Online Mortgage Calculators Can—and Can’t—Tell You

By Marci Deane • August 19, 2026
What Online Mortgage Calculators Can—and Can’t—Tell You Online mortgage calculators are everywhere—and on the surface, they seem like a no-brainer. You plug in some numbers, and out pops what you can “afford.” Simple, right? Not quite. While the math itself is correct, the story behind those numbers is often misleading. Mortgage qualification isn’t just about numbers—it’s about context, risk, and lender policy. And that’s where calculators fall short. The Numbers Are Accurate—but the Picture Isn’t An online calculator can show you what a payment might look like at a given interest rate, or how making extra payments could reduce your amortization. That’s useful information! But when it comes to mortgage qualification , calculators don’t account for the many variables that lenders consider, such as: Your credit history and score Employment type (salary, self-employed, contract) Outstanding debts and monthly obligations Assets, savings, and down payment source The property type and location you’re buying Lenders evaluate all these factors through their internal risk models. That means two people entering the exact same numbers into a calculator could receive very different results when they actually apply for a mortgage. Why Online Calculators Can Mislead You When you see a “How much can I afford?” or “Mortgage Qualification” calculator online, it’s easy to treat the result as fact. But these tools don’t know your financial story—they only crunch the data you enter. A calculator can’t predict how a lender views your risk, how new mortgage rules apply to your file, or how things like spousal support, car loans, or variable income will impact approval. In short: calculators estimate payments, not qualification . Use Calculators the Right Way Don’t get us wrong—online calculators still have value. Use them to explore different “what-if” scenarios: How do payments change with different down payment amounts? How would a rate increase affect affordability? What if you added $100 a month to your payments? These tools are great for helping you understand your comfort zone. Just remember: they’re a starting point, not a green light. The Real First Step: Get a Pre-Approval If you’re serious about buying a home, skip the guesswork and get a mortgage pre-approval . It’s quick, free, and gives you real-world clarity on what you can afford. A pre-approval looks at your full financial picture—income, credit, debts, assets—and provides a framework for your purchase price, payment range, and rate options. It’s the only way to get a reliable answer to the question, “What can I really afford?” Final Thoughts Online calculators are convenient, but they can’t replace expert advice. Think of them as a starting point, not a solution. A professional mortgage broker can interpret the numbers, navigate lender policies, and tailor your financing strategy to your actual situation. If you’d like help understanding your true buying power—or want to get pre-approved with confidence— reach out anytime . I’d be happy to walk you through your options and help you make sense of the numbers.