“Just get in the market” is advice most buyers hear early, especially when prices feel intimidating and waiting feels risky. Buying something smaller often feels like a responsible way to get started, with the assumption that upgrading later will be easy once life and income catch up.
What tends to be overlooked is the cost of moving itself. Not the mortgage or the interest, but the friction that shows up every time a property is bought or sold. Those costs are quiet, unavoidable, and easy to underestimate when the focus is on monthly payments.
When a home is purchased with the expectation that it will be temporary, that friction doesn’t disappear. It simply gets deferred.
Why starter homes feel safe
Starter homes usually come with smaller payments and a lower sense of commitment, which makes them appealing early on. They create a feeling of flexibility, as though you are keeping your options open rather than locking yourself into something long term.
The catch is that moving later is not free. Selling and buying again means paying another round of transaction costs that do not improve your lifestyle or build equity. They simply make the move possible.
The cost most people underestimate
Every real estate transaction comes with fees. Land transfer tax, legal costs, commissions, moving expenses, and various smaller items add up quickly. Paying them once is part of homeownership. Paying them multiple times because a move was always planned can meaningfully change the economics of buying small “for now.”
That second move often arrives sooner than expected, driven by family needs, work changes, or lifestyle shifts. When timing is dictated by life rather than choice, costs tend to feel heavier.
When buying small creates pressure later
Buying a home that no longer fits tends to turn moving from an option into a necessity. At that point, decisions are shaped by urgency rather than opportunity. Inventory, pricing, and timing may not line up, but the move still has to happen.
Homes that allow for a bit of growth, whether through layout, location, or flexibility, often reduce that pressure. The value is not just in space, but in the ability to choose when to move rather than being forced to.
Stretching with intention
Paying more upfront does not automatically mean taking on more risk. In some cases, choosing a home that works for longer can reduce total housing costs by avoiding an extra transaction altogether.
This does not mean pushing payments to the limit. It means thinking about how long a home is likely to serve your needs and weighing that against the real cost of moving again.
The takeaway
Starter homes are not a mistake by default. They can work well when they genuinely fit the next chapter of life.
The hidden cost shows up when a home is clearly temporary. Each move carries friction, and that friction compounds over time. Sometimes the more durable choice is not the smallest one you can buy, but the one that reduces the need to move again too soon.
Selling isn’t about finding the perfect price. It’s about choosing the right moment.
In a stable market, timing barely matters. In a shifting one, timing is the strategy. List too late and the cost isn’t just price — it’s carrying costs, missed opportunities, and tax leakage.
Here’s what actually matters before you list.
Inventory Moves Before Prices Prices are sticky. Inventory isn’t. When listings rise faster than sales, buyers gain leverage long before prices drop.
Watch for:
Months of inventory trending up
Listings growing faster than sales
More price cuts nearby
Waiting for last year’s price usually costs more than it saves.
Days on Market Tells the Truth Prices look backward. Days on market looks ahead.
Rising DOM usually means:
Buyers are more selective
Financing is tightening
Sellers are stuck on old comps
When DOM climbs, the clean sale window is already narrowing.
Expectations Matter More Than Rates Markets don’t move on rates. They move on where buyers think rates are going.
Pay attention to:
Central bank guidance
Bond yields, not headlines
Lender behaviour on approvals
Confidence breaks before affordability does.
The Buyer Pool Is Changing Strong markets have end-users, move-ups, and investors. As conditions tighten, investors disappear first.
When buyers are purchasing out of necessity instead of opportunity, pricing power fades — especially in investor-heavy areas.
Tax Planning Starts Before the Listing Thinking about tax after the sale is usually too late.
Before listing, map:
Principal residence exposure
Calendar-year timing
Capital loss offsets
How the sale stacks with income
Same price, different timing can mean very different after-tax outcomes.
Exit Structure Beats Perfect Timing No one sells the exact top. That’s not the goal.
Better strategy:
Sell non-core assets first
Stagger sales to manage tax brackets
Pay down bad debt before reinvesting
Align the sale with a refinance or restructure
The goal isn’t winning the market. It’s exiting on your terms.
Bottom Line In changing markets, waiting for certainty means reacting late.
The best sellers don’t predict. They notice. Inventory, buyer behaviour, financing, and tax exposure tell the story early.
When the risk-reward shifts, clarity beats hope — every time.
Most buyers treat a pre-approval like a green light. A lender gives you a number and it feels like that’s what you can safely spend. In reality, a pre-approval only shows what you qualify for on paper. It does not tell you what will feel comfortable once you’re actually living with the mortgage.
Your true buying power is shaped by things pre-approvals do not fully capture. Debt structure, rate choice, future renewals, and everyday lifestyle costs all affect how much home you can sustainably carry.
Debt structure matters Pre-approvals assume your debt stays the same. Real life changes. Paying off or restructuring debt can increase usable buying power, while taking on new debt can reduce it quickly. How your debt is set up matters as much as the balance.
Rate choice affects affordability Pre-approvals use a standardized qualifying rate. Your actual mortgage behaves differently. Fixed rates offer stability with higher penalties. Variable and adjustable rates offer flexibility but expose you to payment changes. Your ability to absorb those changes limits how far your buying power stretches.
Renewal is the real test The starting payment is temporary. At renewal, your rate resets to market conditions. If rates are higher, payments rise. Buyers who purchase at their maximum qualification feel this pressure the most.
Lifestyle reveals the truth Lenders do not factor in childcare, commuting, groceries, activities, travel, or income fluctuations. Their formulas ignore real-life spending, which is why many buyers feel stretched after moving in.
A pre-approval is valuable. It confirms you qualify and sets a starting point. It does not measure comfort or long-term sustainability.
A pre-approval is a reference point, not permission to spend.
Most buyers think their income is the only thing standing between them and a bigger mortgage. That is only half true.
Lenders care about how much you earn, but what really matters is how your finances look on paper. With the right structure, you can boost your borrowing power without waiting for a raise or working overtime.
This article shows you how to qualify for more by playing smarter, not harder. We will cover debt restructuring, income splitting, and cash flow tactics your bank will rarely tell you about.
Let’s break it down.
The Math That Matters
When lenders review a mortgage application, they focus on two critical ratios:
GDS (Gross Debt Service) – This measures the percentage of your gross income that goes toward your housing costs. It includes your mortgage payment, property taxes, and heating costs.
TDS (Total Debt Service) – This adds all other monthly debt obligations to the GDS. That includes car loans, credit cards, student loans, and lines of credit.
If these ratios climb above the limits (usually 39 percent for GDS and 44 percent for TDS) your application gets capped regardless of what you think you can handle.
The secret is not to earn more money, but to improve those ratios by changing how your debts and cash flow are structured.
Tactic 1: Consolidate High-Interest Debt
A car loan at eight percent or a credit card at twenty percent destroys your TDS ratio. High payments eat into your borrowing power even if the balances are not massive.
The solution is to refinance into a lower-rate loan or a secured line of credit. In some cases, it may even make sense to use part of your down payment to clear out the debt first. The tradeoff is a slightly smaller down payment, but you may qualify for a higher purchase price overall.
The benefits are clear:
Lower monthly payments
Less interest draining your finances
A stronger borrowing profile
Lenders do not care about the total balance as much as they care about the monthly obligation. Reducing the payment is what makes the difference.
Tactic 2: Spousal Income Splitting
If your partner earns income but is not on title, or if one spouse has high income with equally high debt while the other has modest income with no debt, you may be leaving borrowing power unused.
By splitting ownership and mortgage responsibility strategically, you can lower the combined TDS ratio and unlock higher qualification limits.
There is a bonus here as well. Coordinating ownership and income properly can also open the door to tax strategies such as spousal RRSP contributions and income balancing with the Canada Revenue Agency. A smart mortgage plan can double as a smart tax plan.
Tactic 3: Optimize Cash Flow Timing
Lenders assess you based on monthly obligations, not your bank account balance. By adjusting how those obligations are structured, you can change the picture the lender sees.
Here are some ideas to improve your profile:
Extend amortizations on rental properties so the declared monthly payments shrink.
Convert variable loans into interest-only payments, such as with a HELOC.
Stretch out car payments to reduce the monthly amount, even if only temporarily.
Yes, this may result in more interest paid over the long run, but if your immediate goal is to qualify higher, it can be worth the tradeoff. Once the mortgage is secured, you can always revisit the payment terms later.
Tactic 4: Add Non-Traditional Income
Many borrowers overlook income sources that lenders are willing to count. These include:
Child tax benefits
Spousal or child support (with proper documentation)
Rental income from legal suites or verified roommates
Side hustle income, provided it has been declared for at least two tax years
The key is proper documentation and lender positioning. A skilled mortgage broker knows which lenders will recognize these income sources and how to present them so they strengthen your application.
What to Watch Out For
Do not over-leverage. Qualifying for more does not automatically mean you can afford more. A bigger mortgage comes with bigger risks if your cash flow is stretched thin.
Avoid short-term hacks as permanent solutions. Extending amortizations or making minimum debt payments are tools, not lifestyles. They should be used strategically to qualify and then reviewed once the mortgage is in place.
Get structured before you shop. Too many buyers get pre-approved before optimizing their finances. The structure of your application often matters more than the interest rate at this stage.
Final Take
You do not need to earn more to qualify for more. You need to show up better on paper.
Most buyers walk into a bank, accept the number they are given, and assume it is fixed. Smart buyers restructure their debts, rework their ratios, and unlock an extra fifty thousand to one hundred fifty thousand dollars of borrowing capacity without earning a penny more.
The difference is not income. The difference is strategy.
Most borrowers sleepwalk into renewal. They get a reminder from their lender, sign whatever shows up, and move on. That habit can cost thousands in unnecessary interest. A renewal is one of the few moments where you can renegotiate from a position of real strength. The lender wants to keep your business, and you have time to set the terms.
This is your five-year preparation checklist to make sure you capture the savings that many borrowers leave behind.
Review Your Financial Position Early
Start looking at your renewal window six to twelve months in advance. This gives you space to update documentation, tidy up debt, and position your application for the best pricing.
Review:
Income stability and recent tax filings
Credit score trends
Large purchases or loans you’re planning
Any changes in employment structure
A clean financial picture broadens your lender options, which increases your leverage when negotiating.
Stress-Test Your Cash Flow
Renewals are an opportunity to revisit your payment strategy. Take a fresh look at:
Monthly surplus or shortfall
Opportunities to accelerate repayment
How rising or falling rates interact with your household budget
Whether variable or fixed aligns with your risk tolerance today
Even a small prepayment change can create thousands in long-term interest savings.
Reassess Your Mortgage Strategy
Your life rarely looks the same five years later. Your mortgage shouldn’t either. Step back and evaluate:
Whether you still need maximum flexibility
If a shorter term serves your upcoming plans
Whether it’s time to start segmenting debt for tax efficiency
If converting to a HELOC or hybrid structure supports investment goals
This is the point where borrowers can correct mistakes from the previous term and set up the next stage of their financial plan.
Benchmark Rates Before You Negotiate
Never go into a renewal blind. Know exactly where market pricing sits and how your lender compares.
Check:
Bank posted rates versus discretionary rates
Credit unions and monoline lender offerings
High-ratio versus conventional pricing spreads
Whether any retention incentives are circulating in the market
This lets you challenge a weak renewal offer with confidence.
Audit Your Penalties and Fine Print
Even at renewal, your existing contract may influence your options. Review items like:
Prepayment privileges
Penalty structures
Portability terms
Restrictions on early refinance before the renewal date
Understanding these rules helps you avoid missteps, especially if you need to make changes ahead of the formal renewal window.
Decide if It’s Time to Switch Lenders
Loyalty only helps when it pays you back. If your lender won’t match competitive offers or address structural needs, moving the mortgage may be the better long-term decision. Switching can open access to lower rates, better features, or products designed for investors and self-employed borrowers.
The key is to compare total interest cost over the next term, not just the immediate payment difference.
Final Takeaway
A well-prepared renewal puts you in control. It keeps your options open, sharpens your negotiating position, and sets up the next five years of your financial plan with intention. The strongest outcomes happen when borrowers start early and treat renewal as a strategic moment, not a formality.
Canada enters 2026 with a housing landscape that looks very different from the one earlier in the decade. Rising inventory, regional divergence, and a wave of higher-cost renewals are shaping how buyers, sellers, and investors prepare for the year ahead.
Inventory Is Rising in Key Provinces
The most significant shift heading into 2026 is the increase in resale listings. Ontario and British Columbia now show their highest inventory levels in more than a decade. Homes are spending more time on the market and buyers have more negotiating room.
This does not mean Canada has excess housing. It signals a more balanced environment that creates opportunities for households who struggled during the peak bidding years.
Construction Patterns Are Rebalancing
Developers are reacting to the new conditions. Some overheated markets are seeing fewer new starts, while other regions are experiencing more purpose-built rental and mid-density projects.
These changes affect how quickly new supply becomes available, how affordability evolves, and how regional markets absorb the units already underway.
Renewals Become a Major Financial Pressure Point
Many borrowers who secured very low rates earlier in the decade now face higher payments at renewal. The size of the reset varies by product type, household income, and region.
Some owners may decide to list properties they can no longer comfortably carry. Others will manage the increase by extending amortizations or choosing a different mortgage structure.
Investors Are Repositioning for Stability
Investor behaviour is also shifting. Some are pausing acquisitions in high-priced metropolitan areas and focusing on secondary markets with stronger rent fundamentals and more predictable long-term demand.
Regions that attract young families, skilled workers, and new arrivals continue to show the most resilient potential. Population stability supports both rental performance and resale activity.
Affordability Depends on Local Fundamentals
Affordability is improving in some parts of the country but remains challenging in others. Wage growth, easing inflation, and modest rate relief help, but conditions vary from region to region.
The factors shaping price stability in Halifax look different from those shaping Calgary, Toronto, or Vancouver. Understanding local fundamentals matters more than it has at any point in the past five years.
A More Segmented Market Emerges
Canada is not heading toward a single national outcome in 2026. It is moving toward a more segmented environment where performance depends on regional supply, migration patterns, labour conditions, and renewal exposure.
Those who understand these underlying forces will be better positioned to navigate the year ahead.
Both come with baggage. One delays your wealth. The other costs more to build it.
If you’re staring down today’s home prices thinking “I’ll never save enough”—you’re not alone. But before you jump into a 5% down mortgage, understand this:
Getting in early isn’t free. It just feels like it.
Let’s break down exactly how low-down payment mortgages work, where they help, and where they bite you.
⚙️ The Mechanics: How 5% Down Works in Canada
Here’s what CMHC and the other insurers allow:
Under $500,000? Minimum 5% down.
$500K to $999K? 5% on the first $500K + 10% on the rest.
Up to $1.5 million? As of December 15, 2024, you can now qualify for an insured mortgage—with the same down payment structure: 5% on the first $500K and 10% on the portion between $500K and $1.5 million.
This new $1.5M cap opens the door for more buyers in high-cost markets to enter the game with a smaller upfront investment.
And if you put down less than 20%, you’re taking on default insurance—a premium tacked onto your mortgage. That cost? Between 2.8% and 4% of the loan, depending on your down payment. And yes, it’s usually rolled in, which means you pay interest on the insurance too.
✅ What You Gain by Putting Down Less
1. Faster Market Access Waiting to save 20% while home prices climb is like trying to fill a leaky bucket. A 5% down payment gets you in the game now, not 3 years from now when prices are higher and you’re still behind.
2. Insured Mortgage = Lower Rates Lenders love insured mortgages. The risk’s off their books. That means they’ll often give you better interest rates than someone with 20% down and no insurance.
3. Optionality Buying with 5% down doesn’t lock up your liquidity. You keep cash in the bank. And if life happens—job change, relationship shift, whatever—you’re not deep underwater.
❌ What You Sacrifice (and It’s Not Small)
1. Higher Monthly Payments You’re borrowing more. And adding insurance to your loan. That’s a double whammy. The monthly hit is higher—no way around it.
2. More Interest Over Time Bigger mortgage = more interest. Even if your rate is sharper, the total interest paid is higher because your loan balance is bloated.
3. Slower Equity Buildup In the first few years, you’re barely touching principal. Most of your payment feeds the bank. Add that to the higher balance and you’re building wealth at a crawl.
4. Less Refinance Flexibility Insured mortgages restrict your options. Want to pull equity out later? Refinance with a different lender? Good luck. Your flexibility is capped unless you re-qualify and re-insure (if even allowed).
📈 The Power of Leverage: Turning 5% into 20%
With 5% down, you’re getting 20x leverage on your money. That means for every 1% the property value increases, you get a 20% return on your initial investment.
Let’s break it down:
Purchase Price: $300,000
Down Payment (5%): $15,000
If the property value rises 1% to $303,000, that’s a $3,000 gain.
Return on your $15,000 down payment? 20% ($3,000 ÷ $15,000)
This is one of the reasons homeownership often outpaces renting in the long run. Even modest price increases can significantly boost your equity when you’re highly leveraged.
Think about it: If you had to save 100% of the cash to buy the property, do you realistically believe you would ever be able to own a home? Depending on market conditions, the longer you wait, the more ground you could lose.
🛡️ Default Insurance: Your Hidden Safety Net
Most people think mortgage default insurance only protects the lender. But it can also protect you.
Some insurers offer support programs to help homeowners through temporary financial troubles—like a job loss, illness, divorce, or natural disaster. These programs typically work by:
Offering payment deferrals during a tough period
Extending amortization periods to lower payments
Setting up shared payment plans (where the insurer covers part of the mortgage payment)
Adding missed payments to the loan balance (capitalizing arrears)
Restructuring mortgage terms to fit a new financial reality
For example, Sagen’s Homeowner Assistance Program (HOAP) has helped over 63,000 Canadian families avoid losing their homes, with a success rate of over 90% .
Knowing that your default insurance can act as a safety net if unexpected hardships arise can provide extra peace of mind.
🎯 The Real Question
Do you want in now—knowing the trade-offs—or do you want to wait, save more, and potentially miss out?
There’s no right answer.
If your income is stable, you’re staying put for 5+ years, and you’ve stress-tested your budget? 5% down might be a smart move.
But if you’re stretching, or banking on appreciation to bail you out? Be careful. A hot market can cool. And higher payments don’t feel so hot when rates jump or life gets messy.
Final Take
Buying with 5% down is like using a credit card to grab a seat at the wealth table. You’ll pay for it—but you’ll own something.
It’s not free. It’s not cheap. But it might be smarter than waiting—depending on your market, your goals, and your risk tolerance.
So don’t ask, “Can I buy with 5%?” Ask: “What will it cost me if I don’t?”
Then run the numbers. Talk to a real mortgage strategist. And make the move that sets you up, not sets you back.
For many Canadians, income no longer comes from a single source. Between side hustles, rental suites, investments, and government benefits, household income today is more diverse than ever, and that can actually strengthen your mortgage application.
Most people assume lenders only care about their job salary. In reality, many lenders consider other steady and verifiable income sources when determining how much you qualify for. The key is in how your income is documented and presented, which is where an experienced broker becomes essential.
Why It Matters
Expanding your income story can increase your qualifying amount or help you secure better terms. Lenders need proof that your income is consistent and reliable. This could include:
Two years of tax returns for freelance or seasonal work
CRA notices confirming Canada Child Benefit or CPP income
Lease agreements and deposit history for a suite or rental property
The stronger your documentation, the better your chances of having every dollar count toward your approval.
Income Sources That May Qualify
Here are some of the most common income types lenders may include in their assessment:
Rental or Suite Income. Many lenders allow 50 to 100 percent of rental income if supported by a lease and market rent letter.
Government Benefits. CPP, OAS, and the Canada Child Benefit often qualify if supported by CRA documentation.
Pension and Disability Payments. Steady payments supported by T-slips or bank records are often accepted.
Investment Income. Dividends or interest income can qualify if they are consistent and declared on your tax return.
Side Hustle or Freelance Work. Qualifies when supported by at least two years of verifiable income history.
Documentation Is Key
Mortgage approval depends on proof of income. A clear paper trail of tax returns, benefit statements, or lease agreements shows lenders that your income is both real and stable. Every piece of documentation strengthens your application and helps lenders see your full financial picture.
The Broker Advantage
Not all lenders view income the same way. Some will count all rental income, while others use only a portion. Certain lenders include child benefits or pension income, while others do not. A knowledgeable broker understands these differences and knows which lenders are most flexible. By matching your income mix to the right policy, they help you qualify with confidence and avoid unnecessary setbacks.
The Bottom Line
If you earn money outside your main job, do not overlook its potential. With proper documentation and expert guidance, those extra earnings could turn into buying power that helps you secure your next home.
A new global study finds Canadians wait longer than most young buyers worldwide to enter the housing market
A new global analysis suggests Canada’s major metros are among the hardest places on earth for young people to buy their first home, with Vancouver, Toronto and Montreal ranking near the bottom of a 70-city affordability index.
The study, from UAE-based developer Bloom Holding, estimates the typical first-time buyer in Vancouver enters the market at age 46, while those in Toronto and Montreal reach homeownership at around 40 and 39, respectively.
The findings echo a broader North American trend. In the United States, the median first-time buyer age has climbed to a record 40, according to the National Association of Realtors — up from 33 just a few years ago — as higher rates and decade-long price gains delay ownership for younger households.
Data points to a steep down payment hurdle in Canada
Bloom’s analysis calculates how long it takes an average-income resident in each city to save a 15–25% down payment, assuming they begin saving at around age 23. On that metric, Canadian metros stand out for the sheer time required to accumulate a deposit:
Vancouver: price per m² $10,087 USD; estimated down payment $247,838 USD; first-time buyer age 46.
Toronto: price per m² $7,314 USD; down payment $179,705 USD; age 40.
Montreal: price per m² $6,938 USD; down payment $170,467 USD; age 39.
By comparison, first-time buyers in Bucharest (25) and Budapest/Vilnius (26) gain ownership nearly two decades earlier, on average.
Michael Davenport, Senior Economist at Oxford Economics, said the results align with Oxford’s internal affordability metrics. “Canada’s housing affordability challenges are disproportionately concentrated in major metro areas like Greater Toronto and Greater Vancouver,” he said, adding that “Southern Ontario and British Columbia metros, such as Hamilton and Victoria, also rank among the most unaffordable in the country.”
While affordability has improved modestly alongside falling prices and lower mortgage rates, Davenport added that “(affordable) housing remains out of reach for many households, particularly in major Ontario and British Columbia metros.”
Monthly affordability is improving, but the downpayment hurdle isn’t
Oxford Economics’ Housing Affordability Index (HAI), which measures the borrowing capacity of a median-income household assuming a 20% down payment — a level not typical for most first-time buyers — has eased meaningfully over the past two years.
The national HAI fell from 130 in mid-2023 to 104 in Q2 2025, its lowest level since 2020. At that level, the average home is still about 4% more expensive than what a median-income household can borrow, but affordability is improving.
City-level results remain uneven: Vancouver’s HAI has fallen from 189 to 153, but remains the least-affordable metro in the country; Toronto’s has dropped from 163 to 132; and Montreal’s from 108 to 96, making it generally affordable on a borrowing basis.
Davenport emphasized that Oxford’s index only measures monthly affordability, pointing out that Oxford’s HAI “measures the borrowing capacity of the local median income household relative to local average house prices, and assumes households have a 20% down payment.” He noted that the Bloom Holding report highlights how saving for a down payment remains a significant challenge for many households — particularly in the GTA and GVA, where housing remains most unaffordable.
Policy has eased pressure, but deeper structural gaps remain
Governments have introduced measures aimed at improving affordability, including looser mortgage lending guidelines allowing 30-year mortgages for first-time buyers and new builds, GST reductions on eligible new homes, and programs designed to increase housing supply. Government measures to moderate immigration levels are also helping ease demand pressures.
Over time, Davenport expects national housing affordability to improve as supply expands faster than demand.
“Over the medium-to-long run, we expect housing supply will grow faster than housing demand at the national level, helping to keep house price growth in check and restore affordability at the national level,” he said. But he also cautioned that “major metros like Toronto and Vancouver will likely remain severely unaffordable over the long run.”
In the industry’s early years, Canadians often turned to mortgage brokers only when their bank couldn’t help. Today, many go because brokers can access every bank and a wider range of products.
While many of those traditional customers still rely on brokers, including newcomers, self-employed Canadians and those with credit challenges, brokers are now also popular among everyday borrowers who want more options, better service and a more tailored solution.
“Historically the perception was if you couldn’t get a mortgage at a bank you went to a broker, and that is still the case,” says Mark Tamburro, a broker with Get a Better Mortgage, part of The Mortgage Centre. “But now, the most qualified people also deal with us — the people who could get a mortgage from anyone — because they want you to shop around, to play one lender off the other and get them the best deal.”
While brokers now work with clients across all ages, incomes and credit profiles, each group turns to them for different reasons. Here are some of the most common groups…
Rate shoppers
Tamburro explains that when he began in the industry 33 years ago, his dad warned that he would be dealing with the “dregs of society,” likening the job to that of a used car salesman.
“As my business evolved and I became an expert at providing advice and a client-focused strategy, I was dealing with triple-A customers; doctors, lawyers, investment bankers, you name it.” he says. “The best and brightest wanted to deal with me because I gave them the customized service that most banks weren’t capable of offering.”
Tamburro says rather than a used-car salesman, he now sees his job more aligned with that of a financial advisor who specializes in debt products, or what he calls a “debt advisor.”
“They come to us for advice, they come for us for pricing alternatives, they come to us for selection, and they come for us for unique strategies that aren’t available through traditional vendors,” he says.
Newcomers
Those who are new to Canada face a range of barriers that can make it harder for them to purchase a home, providing an opportunity for brokers to offer unique value.
According to a recent survey of newcomers by TD, more than three quarters worry about making financial mistakes, and more than half say they’ve struggled to manage their finances since arriving in Canada.
“We always talk about how a broker can help with financial literacy, but that trust piece is huge for new-to-Canada clients,” says Rachelle Gregory, Senior Vice President of Originations at Merix Financial. “They lack familiarity with the system, so they’re going to the brokers in their community who will be able to provide culturally sensitive service, understand their needs, offer language options and connect them to lenders.”
First-time homebuyers
Like newcomers to the country, those who are new to the market similarly look to brokers to demystify what can be an intimidating process. According to Mortgage Professionals Canada’s latest consumer survey, 45% of first-time homebuyers said they were likely to use the services of a broker, as well as 40% of those aged 18 to 34.
“We find that the younger generation doesn’t want to be told what to do; they want someone to bring them options,” says Gregory. “The traditional model of going into the local bank and having them sell only the products they offer is not part of their DNA.”
Gregory adds that there is a misconception that first-time buyers are less informed than their more mature peers, arguing that, thanks to the Internet and social media, these buyers are among the savviest.
“Because of that, they want to make sure that they have somebody that’s giving them a lot of options,” she told Canadian Mortgage Trends. “They also want brokers to give them more tools, like budgeting strategies and financial advice, rather than just a mortgage.”
Second (or third, or fourth)-time homebuyers
After making strong inroads with first-time buyers in recent years, many brokers say they’ve established lasting relationships with a new generation of customers who are now ready to upgrade or renew.
“About 45% of first-time buyers use brokers, and that number has been pretty steady for five or 10 years, so a lot of those clients are now going back to the broker that got them set up in the first place,” says Jason Nugent, a broker with Neighbourhood Mortgage Source, part of Dominion Lending Centres.
“We used to do a lot more alternative and B-lending, but now our book has so much A-business, just because those clients are coming back and back and back,” he adds.
Credit-challenged
Brokers aren’t just well-positioned to help first-time buyers return to the market in a stronger position. The broker channel also has a longstanding reputation for helping clients facing financial challenges rebuild and strengthen their credit profiles over time.
“Bad things happen to good people, whether it’s a job loss, marital breakdown, or credit that got out of control,” Nugent says. “If they’ve got a credit score in a certain range, the banks just aren’t set up to help them, but brokers have options for them.”
Those options could include alternative lenders, private lenders, credit unions, and other institutions that are able to work with clients across a broader financial spectrum.
“A broker can take them to an alternative lender, consolidate some of that debt, get them back on track so their credit is good, and we can help get them on the path back to a traditional lender,” Nugent says. “The Big Five banks just aren’t set up to do that.”
Self-employed
Another significant and growing group that often turns to brokers is the self-employed, whose financial records can pose unique challenges when applying for loans.
According to Statistics Canada, there were 2.75 million self-employed Canadians as of April 2025, up nearly 3% from one year prior.
“A lot of self-employed clients make the required income, but through write-offs and things like that, they don’t necessarily meet the same criteria as traditionally employed people,” Nugent says. “The banks just aren’t in a position to help those clients — they tend to lean more towards fully verifiable income, like what line 15,000 shows on your tax return — whereas brokers have options with alternative lenders that will consider gross earnings, which lets them buy houses they can afford, but not in the bank’s eyes.”
Seniors
Brokers are well-suited to help borrowers at all ends of the income, employment, credit score and even the age spectrum.
Once a niche product, reverse mortgages have seen a surge in interest as Canada’s aging population and rising costs push more retirees to tap into their home equity to help manage expenses.
“You’ve got seniors that are wanting to stay in their house, but they still need help, so they’re tapping into that reverse mortgage to pay for a PSW (personal support worker),” Nugent says. “There’s a growing number of seniors that are taking on reverse mortgages or converting because the equity in their home is exploding, and I think brokers have been a major part of that.”
Nugent explains that reverse mortgage clients typically need more time to evaluate their options, and often want other family members and trusted professionals, like their lawyer or accountant, to be part of those conversations.
“A reverse mortgage [sale] can take up to a year, and you may meet with a senior two or three times to make sure they fully understand the product,” Nugent says. “Banks generally don’t have the time to sit down with a senior three or four times to talk about a product they don’t even offer directly, so they’re working with brokers because they have direct access to the product and a better understanding of how it works.”
