RBC expects no further BoC rate cuts

General 9 Jul

Canada’s big banks are divided on how much further the Bank of Canada will cut, with RBC now saying the rate has likely bottomed, while others still expect more easing ahead.

The outlook for interest rates is becoming less clear-cut as Canada’s major banks rethink how far the Bank of Canada will go in its rate-cutting cycle. While most still see room for further easing, RBC is breaking away from the pack.

The bank has taken additional cuts off the table, forecasting the overnight rate will hold steady at 2.75% through 2026—making it the most hawkish forecast among the Big Six.

In its latest Monthly Forecast Update, RBC said: “We no longer expect any rate cuts from the BoC this year.” The bank explained that “as direct trade uncertainty facing Canada recedes…the inflation outlook remains uncertain,” reducing pressure on the central bank to act further.

That’s a shift from earlier this year, when RBC still expected one more cut before the cycle ended.

By contrast, Scotiabank has revised its forecast lower, now projecting the policy rate to settle at 2.25%—down from 2.50% in its previous estimate. BMO, meanwhile, remains the most dovish, continuing to project a fall to 2.00% by early 2026.

TD, CIBC and National Bank continue to expect a terminal rate of 2.25%, in line with the Bank of Canada’s current inflation outlook.

Written by the team at CMT

Variable vs Fixed: The 2025 Reality Check for Canadian Borrowers

General 8 Jul

Are You Betting on Stability or Flexibility?

In 2025, choosing between a fixed or variable mortgage isn’t just about preference—it’s about risk, timing, and how much uncertainty you can stomach.

After two years of wild rate swings, inflation surprises, and mixed signals from the Bank of Canada, borrowers are stepping into a murkier landscape. The cost of choosing wrong could mean hundreds of dollars a month—or tens of thousands over the life of your mortgage.

This article breaks down what’s changed, what to watch for, and how to make the right move for your financial goals.

Where Rates Sit in Mid-2025

Let’s ground this in the current numbers (as of June 2025):

Bank of Canada policy rate: 2.75%
Prime rate: ~4.95%

Variable Rates:

Insured: ~4.04% to 4.30%
Conventional: ~4.30% to 4.79%

5-Year Fixed Rates:

Insured: 4.04% (BC only) to 4.24%
Conventional: 4.36% to 4.59%

The gap between fixed and variable has narrowed—but two more expected BoC rate cuts could shift the math again before year-end.

Choose Based on Strategy, Not Guesswork

There’s no universally “right” answer. The better question is—what fits your situation, timeline, and tolerance for uncertainty?

Go Variable If…

You believe rates will keep falling through 2025–2026
You can handle some payment fluctuation
You might break your mortgage early (e.g., sell, refinance, relocate)

Go Fixed If…

You want budget certainty and payment predictability
You think inflation might flare back up
You’re staying put for the full term

Fixed vs Variable: What It Actually Costs

Let’s compare a $400,000 mortgage over a 25-year amortization.

5-Year Fixed at 4.59%

Monthly payment: $2,234
Total interest (5 years): $85,743

5-Year Variable at 4.30%

Monthly payment: $2,169
Total interest (5 years): $80,190

Monthly savings: $65 Total 5-year savings: $3,900

These figures assume rates stay flat for the full 5-year term. If the Bank of Canada cuts rates further—as many economists expect—the savings from going variable could increase significantly.

The Hidden Factor: Breaking Your Mortgage

Here’s where many borrowers get blindsided.

Roughly 6 in 10 Canadians don’t keep their mortgage for the full 5-year term. Life happens—jobs change, families grow, plans evolve.

Fixed-rate penalties are notoriously hard to predict. They’re based on the Interest Rate Differential (IRD), which compares your original rate to the lender’s current rate for the remaining term. Depending on timing and your lender, these penalties can range from a few thousand to over $20,000.

Variable-rate penalties, by contrast, are simple: 3 months’ interest.

On a $400,000 mortgage at 4.30%, that’s about $4,300.

If there’s even a chance you’ll need to exit early, that penalty difference could easily erase any “savings” from locking into a fixed rate.

The Fine Print Matters—A Lot

Rate isn’t the only thing that matters. In many cases, the structure of your mortgage—and the fine print—can impact your long-term finances more than a quarter point in interest.

Here are a few features to look for:

Portability: If you lock into a fixed-rate mortgage, make sure it’s portable, especially across provinces. Without portability, moving could trigger massive break penalties—even if you’re buying another home.
Prepayment Privileges: Can you make extra payments without penalty? Some lenders allow lump-sum payments or double-up options, helping you pay off your mortgage faster.
Blend and Extend Options: Can you refinance into a new term without triggering a penalty if rates drop?

A great mortgage broker doesn’t just hunt for the lowest rate—they help you navigate these options and make sure your mortgage fits your life, not just your spreadsheet.

Where the Wind Is Blowing

Big bank economists are still forecasting two more BoC cuts by the end of 2025, potentially bringing variable rates closer to the 4.00% mark by early 2026. That gives variable-rate borrowers a potential tailwind—if they’re willing to ride it out.

Fixed rates, on the other hand, are expected to hold relatively steady, since they follow bond yields more than central bank decisions.

Translation:

Variable has room to fall.
Fixed is likely near its short-term floor.

2025 Reality Check: What’s Right for You?

Fixed: Best if you’re risk-averse and want predictability.
Variable: Better if you’re planning ahead, value flexibility, or expect rates to drop.
Structure > Rate: The “cheapest rate” isn’t always the smartest choice.

Consider the Hybrid Approach: The Best of Both Worlds

For borrowers torn between stability and flexibility, a hybrid mortgage could offer the perfect middle ground. This structure splits your mortgage into two portions—typically 50/50 fixed and variable—allowing you to lock in part of your loan for predictability while still taking advantage of potential rate drops on the variable side. It’s a strategic hedge: if rates fall, your variable portion benefits; if they rise, your fixed side cushions the impact. Hybrid mortgages also offer more psychological comfort, helping borrowers sleep at night without fully committing to either extreme. It’s a smart option for those who want balance without placing all their chips on one rate bet.

Bottom Line: In today’s market, the mortgage with the right features—portability, prepayment flexibility, manageable penalties—can save you more than a 0.50% rate cut ever could.

Before you sign, talk to a mortgage pro who understands the fine print and can match you with a mortgage that actually fits your plans.

Written by the team at Breaking Banks

Time vs. Timing: Why Trying to Outsmart the Market Usually Backfires

General 1 Jul

Let’s be real. You’ve probably told yourself some version of this:

“The market feels risky right now. I’ll wait until things settle.” “Rates are too high. I’ll jump in when they drop.” “Prices are up. I missed the window—maybe next year.”

The problem? That window you’re waiting for—where everything is calm, cheap, and certain—doesn’t exist. It’s a mirage. And the longer you chase it, the further behind you fall.

In investing, hesitation is often more dangerous than volatility.

The Illusion of Perfect Timing

Market timing sounds great in theory: buy low, sell high, make bank. But in real life? It rarely plays out that clean.

Even the pros—with armies of analysts and AI tools—miss the mark. So what chance does the average investor have while scrolling headlines and watching rate announcements?

Let’s put numbers on it. A Fidelity study showed that missing just the 10 best days in the market over 20 years can cut your returns in half. And those “best days”? They usually happen when things feel the worst—right after crashes, corrections, or full-blown panic.

That’s the trap. Most people get scared, pull out, and miss the rebound. They think they’re avoiding risk, but what they’re really doing is locking in loss.

Why Time in the Market Wins

There’s a better way—and it doesn’t require a crystal ball. It just requires consistency.

It’s called Dollar-Cost Averaging (DCA), and it’s as unsexy as it is effective.

Here’s how it works:

You invest a set amount of money on a regular schedule (weekly, bi-weekly, monthly).
You buy more when prices are low, less when they’re high.
Over time, this averages out your cost per unit and reduces the impact of short-term volatility.

More importantly, it removes emotion from the process. No more second-guessing. No more reacting to headlines. Just steady, methodical action that compounds quietly in the background.

And yes—it works in up markets, down markets, sideways markets. Because you’re not trying to beat the market. You’re just staying in it long enough to win.

Behavioral Finance Backs This Up

This isn’t just opinion—it’s behavioral science.

Study after study shows that people who try to time the market underperform the market. Why? Because emotion hijacks logic. Fear during dips. FOMO during rallies. The brain treats financial loss like physical pain. So we react, even when we shouldn’t.

That’s why automation and discipline are your best friends. Remove decision-making from the process, and you remove the biggest threat to your returns: yourself.

The Real Cost of Waiting

There’s a hidden danger in doing nothing. Every month you delay, your cash sits still while inflation moves forward. Your purchasing power erodes. And the opportunity cost quietly stacks up.

Waiting for “the right time” to invest is like waiting for the perfect moment to have a kid, start a business, or buy your first property. It always feels like a big leap. But the longer you put it off, the harder it gets to catch up.

Bottom Line

You don’t need to guess right. You need to show up consistently.

Forget timing the market. That’s a gambler’s game. Instead, play the long game. Pick a date, set your investment schedule, and stick to it—whether the market is booming, busting, or somewhere in between.

Because the truth is this: The market rewards participation, not perfection.

By the Marketing team at Breaking Bank

Top Home Upgrades to Boost Your Property’s Value

General 18 Jun

“Spring has a way of bringing everything back to life, even a broken heart—or a dated, messy house.” ~ Willie Nelson (roughly interpreted)

Spring is typically a busy season for the housing market in Canada.

Whether you’re looking to sell or help your home bloom where it’s planted, these value-add ideas will be worth putting on your to-do list. We’ve sorted the chores by cost so you can consider your budget first and foremost.

Now, let’s get to work!

Under $100

Perhaps the best bang for your buck is to focus on the front of the house. A few inexpensive ideas are to paint the front railing, upgrade the mailbox, or change the numbers on your house. You’ll also get a lot of value from some yard maintenance, like raking, picking up the pinecones, cutting the grass, or planting a few flowers. Do you know why flowers are so popular? They have a lot of buds. ????

Looking at the inside of the house, something almost all of us could benefit from is decluttering. Go through kitchen drawers and cupboards, closets, and even review the décor in your home. If you still have one of those tall vases with some wheat coming out of it, it’s time to let that go. While you’re scrutinizing every nook and cranny, make sure all the lightbulbs work—and replace any that are burnt out.

Under $500

This budget can get you pretty far if you’re willing to DIY some projects. For example, you could get some paint and supplies and paint a whole new colour into your home. Start with a room or even just an accent wall to make the project more manageable. Another option is to put a firepit in your yard. Seeing and using the space in a new way might make you fall in love with the home all over again.

Another option is to tackle some small upgrades, like new knobs on the kitchen drawers, replacing a toilet seat with an upgraded bidet, or even installing a new light fixture that brightens up a room. Some door handles might need replacing or you may even want to add some curtains or a window treatment to the most used rooms in your home.

Under $1000

Perhaps the biggest suggestion in this category is a professional cleaner. Having someone come in and truly scrub the baseboards, inside the oven, and all those other sneaky little places will make your house look instantly better. Be sure to make a list of what needs the most attention and prioritize the tasks when you hire the cleaner. You could also get your carpets professionally cleaned – they’ll both look and feel much better.

Another idea is to add some tech into your home, like a smart thermostat, lighting, or a camera-based security system. These can be relatively easy to install on your own which is a great way to save some money.

Under $2500

We’re going to start with an interesting one here, which is to upgrade your front door to a steel door. Based on the numbers online, you’ll make back 188% of the value at resale, so think of it as an investment.

If you’ve got hardwood floors, getting them refinished will make a big difference aesthetically in your home. If that’s not a direction you want to go, you could also upgrade the space with a high-quality area rug.

Under $5000

The first suggestion is to upgrade your bedroom closets to custom designs. Make the space more functional for the clothes, shoes, and accessories you have. It will not only make getting dressed easier, but the entire space will be easier on the eyes.

The second suggestion is to install a new garage door. Whether it’s a newly automatic door or simply a better-looking replacement, a new garage door has been shown to recoup 194% of its cost at resale. And if resale isn’t the direction you’re going, you can still use the new door and have your property looking better quickly.

Unrestricted Budget

This next section is something you’re almost certainly better off hiring a professional to tackle. These are much more time and labour intensive, so be sure to research the cost and get quotes from professionals before launching into any of them. Here are a few suggestions:

Replace the roof. Speaking of roofs, do you know why the roof went to the doctor? It had shingles.
Redo the kitchen to modern design with new appliances like a gas stove, convection oven, double dishwasher, tech-heavy fridge, or other things you’ve had on your bucket list
Add an addition to the home with an office space
Replace windows with energy efficient ones and include window dressings

The bottom line here is that no matter how big or how small your budget is, there are plenty of things you can do to spruce up your home and either enjoy it more yourself or increase its value to a potential buyer.

Buying with 5% Down: What You Gain

General 16 Jun

You’ve got two choices:

Save for years to hit 20% down.
Buy with 5% down and get in the market now.

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.

By the team at Breaking Bank

Bank of Canada Holds Rates Steady for the Second Consecutive Meeting–But Two More Rate Cuts Are Likely This Year

General 4 Jun

As expected, the Bank of Canada held its benchmark interest rate unchanged at 2.75% at today’s meeting, the second consecutive rate hold since the Bank cut overnight rates seven times in the past year. The governing council noted that the unpredictability of the magnitude and duration of tariffs posed downside risks to growth and lifted inflation expectations, warranting caution regarding the continuation of monetary easing.

The gap between the 2.75% overnight policy rate in Canada and the 4.25-4.50% policy rate in the US is historically wide. Another cause of uncertainty is the fiscal response to today’s economic challenges. If the Big Beautiful Bill, now under consideration in the Senate, survives, the US is slated to run unprecedented budget deficits. The Congressional Budget Office estimates it would add roughly US$4 trillion to the already burgeoning federal government’s red ink. This has caused a year-to-date rise in longer-term bond yields, steepening the yield curve.

Uncertainty remains high, and the US President just doubled the tariff on steel and aluminum to 50%, which could halt Canadian metals exports to the US. Last week’s release of the first quarter GDP report at 2.2% annualized growth was stronger than expected as exports and inventories surged before the tariffs. Final domestic demand in Canada was flat. More recent data showed considerable weakness, especially in labour and housing markets. Consumer spending has also slowed sharply.

In today’s press conference opening comments, Governor Macklem said, “The extreme financial turmoil we saw in April has moderated, and stock markets have recovered their losses. However, the outcomes of the trade negotiations are highly uncertain. Tariffs are well above their levels at the beginning of 2025, and new trade actions are still being threatened. The recent further increases in US tariffs on steel and aluminum underline the unpredictability of US trade policy.”

“So far, the US economy has proven resilient. Imports were strong as businesses tried to get ahead of tariffs, and that pulled down first-quarter US GDP. But domestic demand remained relatively strong. Early indicators for the second quarter suggest a rebound in growth as imports fall back and domestic demand continues to expand.

The flip side of the strength in US imports was a surge in Canadian exports. This boosted first-quarter GDP growth in Canada, which came in at 2.2%, slightly stronger than the Bank had forecast.

The labour market has weakened, with job losses concentrated in trade-intensive sectors. The unemployment rate rose to 6.9% in April. So far, employment has held up across sectors less exposed to trade. However, businesses generally tell the central bank they plan to scale back hiring.

The pull forward in exports and inventory accumulation in the first quarter borrows economic strength from the future, so the second quarter is expected to be much weaker. Canadian families and businesses’ spending has shown some resilience in the face of US tariffs and heightened uncertainty. But they will likely remain cautious, suggesting domestic spending will remain subdued.

Inflation excluding taxes was 2.3% in April, slightly more substantial than the Bank had expected and up from 2.1% in March. The Bank’s preferred measures of core inflation and other measures of underlying inflation moved up in April. There is some unusual volatility in inflation, but these measures suggest underlying inflation could be firmer than we thought. Higher core inflation can be partly attributed to higher goods prices, including food, and may reflect the effects of trade disruption. Many businesses report higher costs for finding alternative suppliers and developing new markets. The Bank will be closely watching measures of underlying inflation to gauge how inflationary pressures are evolving.

The Bank is also monitoring inflation expectations closely. In April, we reported that consumers and businesses expected prices to rise due to tariffs, while longer-term inflation expectations remained well anchored. Recent surveys continue to show consumers bracing for higher prices, and many businesses say they intend to pass on tariff costs.

Governing Council will continue to assess the timing and strength of the downward pressure on inflation from a weaker economy and the upward pressure on inflation from higher costs.

At this decision, there was a consensus to hold the policy unchanged as we gain more information. The BoC also discussed the path ahead for the policy interest rate. Here, there was more diversity of views. On balance, members thought there could be a need for a reduction in the policy rate if the economy weakens in the face of continued US tariffs and uncertainty, and cost pressures on inflation are contained

Bottom Line

We expect the Canadian economy to post a small negative reading (-0.5%) in both Q2 and Q3, bringing growth for the year to 1.2%, just one tick above the recently released OECD forecast for Canada. The next Governing Council decision date is July 30, which will give the Bank time to assess the underlying momentum in inflation and the dampening effect of tariffs on economic activity.

If inflation slows over the next couple of months—we get two CPI releases and two jobs reports before the next meeting—and the economy slows in Q2 and Q3 as widely expected, the Bank will likely cut rates two more times this year, bringing the overnight rate down to 2.25%.

Written By our DLC Chief Economist

House Hunting Done Right: 5 Steps to Find Your Dream Home

General 3 Jun

Finding your dream home can seem like a daunting task.

But don’t despair!

Here are five actionable steps to set you up for success.

Start with the Practicalities: First, figure out your finances. How much have you got saved for a downpayment, how much can you afford on a monthly basis, and what will you be able to qualify for? Download my mortgage app and start running your numbers quickly and easily on your own time.
Set Yourself up for Success: If you want to find your dream home, you’ve got to figure out what that is. Make a list of needs and wants in your home, considering things like number of bedrooms, parking, your renovation skills and budget, etc. Also consider anything that would be a deal breaker. Share your requirements with your real estate agent before you start looking at properties. Keep in mind the more requirements you have, the longer your search might take, so be patient.
Visit the Area: The neighbourhood might be the most important factor in your home purchase, so be sure to go to the ones you’re considering living in. Check out what’s happening in the area like construction, gentrification, who’s there, amenities, etc. Try to meet some of your potential neighbours and get a feel of what they like and don’t like about what’s happening in the area. You may learn some info that won’t be available in a property listing which could sway your purchase decision, or even find out about properties that could be available to purchase but aren’t currently listed for sale.
Gather Information: Ask whatever questions you can about the house, like the history of repairs and upgrades, any outstanding leases or tenants, concerns with neighbours or the neighbourhood, traffic on the street, etc. Be sure to see the property in person at least twice and go at different times of the day so you get as complete a picture as you can of the home and its surroundings.
Sell Yourself: Consider that no one has to sell you their home. Writing a letter introducing yourself and explaining your intentions can set you apart from other offers and endear you to the seller. You might end up with more favourable purchase circumstances thanks to your effort. Also be sure to have your financing in order (I can get you a preapproval valid for 120 days) so you have fewer conditions on any offer you make.

When you’re ready to make a move, I’m here for you. Give me a call to help you with the practicalities of financing so you have a successful hunt for that dream home!

GST cut for first-time buyers of homes under $1M

General 30 May

Prime Minister says move will save Canadians up to $50,000 and boost housing supply amid affordability crisis

Prime Minister Mark Carney is promising relief for first-time homebuyers by eliminating the GST on homes priced at $1 million or less.

The new measure, unveiled in Edmonton just days before the expected launch of the federal election campaign, would save buyers as much as $50,000, Carney said. It also aims to stimulate new housing construction across Canada by lowering upfront costs and encouraging builders to bring more supply to market.

“Canada is in a housing crisis—demand has gone up, supply has not kept pace, and prices are too high,” Carney said during the announcement. “Eliminating the GST will save first-time homebuyers up to $50,000 and spur housing construction across the country. We will announce a series of new measures to increase housing supply shortly. It’s time for focused action to solve the housing crisis, and it’s time to build a Canada you can afford.”

The promise delivers on a key plank of Carney’s leadership campaign and echoes a similar commitment made last fall by Conservative Leader Pierre Poilievre. With affordability issues dominating public concern, both major parties are racing to position themselves as the party best equipped to fix Canada’s broken housing system.

Under current federal rules, new homes priced under $350,000 are fully eligible for a GST rebate, with a partial rebate available up to $450,000. But with average home prices far exceeding that threshold in most major cities, many buyers—and builders—have effectively been shut out of the tax relief. Carney’s proposed GST exemption would apply to all first-time buyers purchasing a home up to $1 million, expanding the benefit to a broader group.

Housing affordability has become one of the defining challenges of the past decade, particularly for young Canadians and newcomers. According to the Canada Mortgage and Housing Corporation (CMHC), the country needs to build an additional 3.5 million homes by 2030 to restore affordability. But builders face headwinds from high interest rates, labour shortages and regulatory delays.

The federal government says it plans to unveil a suite of additional measures in the coming weeks to help address these barriers and accelerate construction. Carney has framed housing not only as a crisis of affordability but as an economic imperative.

“Our government is laser-focused on lowering costs for Canadians and making homeownership a reality,” the government said in a release. “The Government of Canada will confront the housing crisis head-on and build the strongest economy in the G7.”

Written by the CMT team

First-Time Homebuyer Benefits.

General 26 May

Buying your first home is a significant milestone! While you’re thinking about your affordability and what type of home you want to own, we have some exciting updates around first-time homebuyer benefits:

New or Pre-Construction Homes: Did you know? First-time buyers looking to purchase a new build or pre-construction home are eligible for 30-year amortization. This mortgage commitment can allow you to have smaller monthly payments, versus a standard 25-year amortization.

Mortgage Default Insurance: The CMHC has recently made it so mortgage default insurance will cover up to $1.5 million homes (increased from $1 million), helping more Canadians qualify for insured mortgages.

The Home Buyers’ Plan (HBP): The Canadian government has a program known as the Home Buyers’ Plan (HBP), which is designed to allow first-time homeowners to withdraw up to $60,000 from RRSP to buy a home!

Purchasing with your spouse? You can access a total of $120,000 from your RRSP’s.

First Home Savings Account (FHSA): The First Home Savings Account (FHSA) is specifically designed to help first-time homebuyers save for their down payment without paying taxes on the interest earned on their savings. The maximum is $8,000 annually that you can add into this account to save, with a maximum of $40,000 lifetime contributions.

First-Time Buyer Exemption: First-time home buyers are eligible for an exemption, reducing the property transfer tax you pay. If the fair market value of the property is:

$500,000 or less, you can claim an exemption amount equal to the full amount of property transfer tax.
Over $500,000 but no more than $835,000, the exemption amount is $8,000.
Over $835,000 and under $860,000 then the exemption amount is proportionally reduced up to $15,200.

Land Transfer Tax Rebates: First-time buyers in Ontario, British Columbia, Prince Edward Island, and the City of Toronto are able to claim land transfer tax rebates.

Reach out to a DLC Mortgage Expert today to learn more!

Six Home Upgrades That Will Make Spring Even Better.

General 23 May

As the days get longer and your flowers begin to bloom, there’s no better time to transform your house into your dream home. If you want to unlock your home’s full potential, here are six renovations that can boost both your lifestyle and property value.

Kitchen Transformation

Imagine having a kitchen that not only looks beautiful but also fits your lifestyle perfectly. A kitchen transformation can elevate your home, making it a space where you love to spend time. Whether it’s adding more storage, updating your appliances, or replacing your countertops, now is the perfect time to create the kitchen you’ve always dreamed of. In Canada, a mid-sized kitchen renovation typically ranges from $25,000 to $40,000. An investment that enhances your daily life, as well as your home’s appeal. You deserve a space that works for you.

Roof Replacement

Over time, weather and wear can take a toll on your roof, leading to leaks and potential damage. Replacing your roof this spring restores your home’s safety, boosts its curb appeal, and improves overall efficiency. With modern materials and improved insulation, a new roof offers long-term protection from the elements while reducing the likelihood of future issues. In Canada, the cost to replace the roof on a mid-sized home ranges from $10,000 to $20,000, an investment that offers renewed security and peace of mind for years to come.

Backyard Refresh

Why not turn your backyard into a personal oasis this spring? Whether you’re adding a new deck, fresh landscaping, or an outdoor kitchen, even small changes can make a big difference. Depending on the scope of the project, a new deck may cost between$5,400-$15,000, landscaping updates typically range from, $5,000 to $15,000 and an outdoor kitchen typically starts around $10,000. Whatever your budget, a thoughtful backyard makeover can create a welcoming space to relax and enjoy meaningful moments with family and friends throughout the season.

Siding and Paint Renewal

A siding or paint renewal can really bring new life to your home’s exterior. If your paint is fading or your siding is starting to look worn, it’s not just about looks, it can also leave your home more vulnerable to the elements. Updating with fresh paint or modern siding doesn’t just protect your home but also gives it a clean, refreshed look that you’ll love coming home to. On average, the cost of siding replacement for a mid-sized home ranges from $14,000 to $30,000, depending on materials chosen. Similarly, exterior painting typically costs between $3,000 to $9,000. It’s a simple change that makes a significant difference, especially with spring right around the corner.

New Doors and Windows

Sometimes, we don’t realize how old or worn-out doors and windows can affect the look and feel of our home. Updating them can instantly brighten up your space. A new front door, which typically costs around $3,900 for supply and installation, can instantly refresh your entryway. Replacing outdated windows, with an average cost of $15,000 to $35,000, can also improve natural light and energy efficiency. It’s amazing how these simple changes can make your home feel brighter, warmer, and more welcoming.

New Air Conditioner

You might have noticed that your air conditioning unit isn’t performing as well as it used to, and it may be time to start thinking about a replacement. A modern, efficient air conditioner not only keeps your home at the perfect temperature but also ensures you can enjoy hot days without worrying about your system struggling. On average, replacing an air conditioner in a mid-sized Canadian home costs between$3,500 to $8,500, depending on the type of system and installation requirements.

Renovations can be expensive, and it’s common to feel overwhelmed by the long list of updates you’d like to prioritize. With the CHIP Reverse Mortgage by HomeEquity Bank, these dream projects can become a reality. If you’re 55 or older, you can unlock up to 55% of your home’s equity in tax-free cash, with no monthly mortgage payments required, giving you the funds to complete transformative renovations just in time for spring.

Contact your Dominion Lending Centres mortgage expert to learn more about how the CHIP Reverse Mortgage can help fund your renovations without affecting your savings or monthly budget.

*Please note that all the numbers listed above are estimates and have been sourced from numerous websites. These figures are approximate as they may vary depending on different factors including province, time, market conditions, as well as regulations or policies. *

Written by my DLC Marketing Team

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