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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Everything You Need to Know About Second Mortgages

By Marci Deane • May 6, 2026
What Is a Second Mortgage, Really? (It’s Not What Most People Think) If you’ve heard the term “second mortgage” and assumed it refers to the next mortgage you take out after your first one ends, you’re not alone. It’s a common misconception—but the reality is a bit different. A second mortgage isn’t about the order of mortgages over time. It’s actually about the number of loans secured against a single property —at the same time. So, What Exactly Is a Second Mortgage? When you first buy a home, your mortgage is registered on the property in first position . This simply means your lender has the primary legal claim to your property if you ever sell it or default. A second mortgage is another loan that’s added on top of your existing mortgage. It’s registered in second position , meaning the lender only gets paid out after the first mortgage is settled. If you sell your home, any proceeds go toward paying off the first mortgage first, then the second one, and any remaining equity is yours. It’s important to note: You still keep your original mortgage and keep making payments on it —the second mortgage is an entirely separate agreement layered on top. Why Would Anyone Take Out a Second Mortgage? There are a few good reasons homeowners choose this route: You want to tap into your home equity without refinancing your existing mortgage. Your current mortgage has great terms (like a low interest rate), and breaking it would trigger hefty penalties. You need access to funds quickly , and a second mortgage is faster and more flexible than refinancing. One common use? Debt consolidation . If you’re juggling high-interest credit card or personal loan debt, a second mortgage can help reduce your overall interest costs and improve monthly cash flow. Is a Second Mortgage Right for You? A second mortgage can be a smart solution in the right situation—but it’s not always the best move. It depends on your current mortgage terms, your equity, and your financial goals. If you’re curious about how a second mortgage could work for your situation—or if you’re considering your options to improve cash flow or access equity—let’s talk. I’d be happy to walk you through it and help you explore the right path forward. Reach out anytime—we’ll figure it out together.

Bank of Canada Holds Rate at 2.25% — April 29, 2026

By Marci Deane • April 29, 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%. This decision comes against a backdrop of significant global uncertainty — and for Canadian homeowners, buyers, and anyone with a mortgage coming up for renewal, here's what it means.

Your Guide to Successfully Navigating the Housing Market

By Marci Deane • April 22, 2026
Wondering If Now’s the Right Time to Buy a Home? Start With These Questions Instead. Whether you're looking to buy your first home, move into something bigger, downsize, or find that perfect place to retire, it’s normal to feel unsure—especially with all the noise in the news about the economy and the housing market. The truth is, even in the most stable times, predicting the “perfect” time to buy a home is incredibly hard. The market will always have its ups and downs, and the headlines will never give you the full story. So instead of trying to time the market, here’s a different approach: Focus on your personal readiness—because that’s what truly matters. Here are some key questions to reflect on that can help bring clarity: Would owning a home right now put me in a stronger financial position in the long run? Can I comfortably afford a mortgage while maintaining the lifestyle I want? Is my job or income stable enough to support a new home? Do I have enough saved for a down payment, closing costs, and a little buffer? How long do I plan to stay in the property? If I had to sell earlier than planned, would I be financially okay? Will buying a home now support my long-term goals? Am I ready because I want to buy, or because I feel pressure to act quickly? Am I hesitating because of market fears, or do I have legitimate concerns? These are personal questions, not market ones—and that’s the point. The economy might change tomorrow, but your answers today can guide you toward a decision that actually fits your life. Here’s How I Can Help Buying a home doesn’t have to be stressful when you have a plan and someone to guide you through it. If you want to explore your options, talk through your goals, or just get a better sense of what’s possible, I’m here to help. The best place to start? A mortgage pre-approval . It’s free, it doesn’t lock you into anything, and it gives you a clear picture of what you can afford—so you can move forward with confidence, whether that means buying now or waiting. You don’t have to figure this out alone. If you’re curious, let’s talk. Together, we can map out a homebuying plan that works for you.