Blog

<h3>Is a mortgage good debt or bad debt?</h3>A mortgage is, by most definitions, the most strategic form of debt a Canadian borrower can carry. Unlike consumer debt - which costs you money and gives you nothing in return - a mortgage finances an asset that historically appreciates in value, while simultaneously building your equity with every payment you make.But the distinction between a mortgage that serves you well and one that simply costs you money comes down to one thing: structure. A mortgage that is built thoughtfully, reviewed at renewal, and managed actively over its life will perform very differently than one that was signed and forgotten.<h3>The Features Inside Your Mortgage That Most Borrowers Never Use</h3>Canadian mortgage products come with a set of tools that are written into the contract but rarely explained at closing. Understanding these features is where the real financial advantage begins.Prepayment PrivilegesMost lenders allow borrowers to prepay a percentage of the original mortgage principal each year without triggering a prepayment penalty. This is typically between 10 and 20 percent of the original principal, depending on the lender and product.On a $550,000 mortgage, a 10 percent prepayment privilege means you can put up to $55,000 toward your principal each year - penalty-free. Even more modest contributions, made consistently, can shave years off your amortization and save tens of thousands in interest over the life of the mortgage.This privilege resets annually on most products. Borrowers who understand this use it strategically - applying tax refunds, bonuses, or one-time windfalls directly to principal at the right time of year.Payment FrequencyThe difference between monthly and accelerated biweekly payments is often underestimated. With accelerated biweekly payments, you make the equivalent of 13 monthly payments per year rather than 12. On a standard 25-year amortization, this single adjustment can reduce your total mortgage life to approximately 22 years, without any change to your rate.This is a decision made once, at the start of the mortgage, that pays dividends for the entire amortization period.Lump Sum Payment OptionsSeparate from prepayment privileges, many lenders also allow borrowers to increase their regular payment amount by a set percentage each year - often 10 to 20 percent above the original payment. Combining this with periodic lump sum contributions creates a compounding paydown effect that significantly accelerates the path to being mortgage-free.&nbsp; <h3>Does Mortgage Structure Really Matter More Than Rate?</h3><figure id="figure-t537du5wthmp2xiq6a"><img id="t537du5wthmp2xiq6a" src="https://cdn.durable.co/blocks/16jA4hydsfCF18Z4kN6vFL6zNS695QITXA0xntSf1RHM0jfQYoLcF4vG7YSK05zs.png" alt="" title="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="default" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/16jA4hydsfCF18Z4kN6vFL6zNS695QITXA0xntSf1RHM0jfQYoLcF4vG7YSK05zs.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"></figure>Two borrowers with the exact same rate can end up with dramatically different outcomes depending on whether they used their prepayment options, chose the right payment frequency, and reviewed their mortgage at each renewal with the full market available to them - rather than simply accepting whatever their existing lender offered.<h3>The Generational Dimension of Mortgage Strategy</h3>One of the patterns that becomes visible over a long career in mortgages is that the families who are in a position to help their children with down payments today are, in most cases, not necessarily the families who earned the most. They are the families who managed their mortgage well.Equity built through strategic prepayments, combined with property appreciation over 20 to 25 years, creates a financial position that extends beyond the original borrower. Whether that takes the form of a gifted down payment, a co-signing arrangement, or the gradual transfer of property, the starting point is almost always the same: a mortgage that was treated as a financial tool from day one.This is not guaranteed, and it is not advice about whether to purchase property. It is an observation about the borrowers who tend to end up with the most options later in life.<h3>Common Questions About Mortgage Prepayment and Strategy</h3>What happens if I miss a prepayment opportunity in a given year? Most prepayment privileges are use-it-or-lose-it within the calendar or anniversary year, depending on the lender. They do not carry forward. This is why timing matters - and why working with a broker who tracks these windows for you can make a real difference.Can I change my payment frequency after signing? In most cases, yes - though some lenders have restrictions on how often and when you can make changes. This is worth confirming before signing, not after.Is it better to put extra money toward my mortgage or invest it? This is a personal finance question that depends on your interest rate, your investment return assumptions, your risk tolerance, and your tax position. There is no universal answer. What I can tell you is that for most Canadian borrowers with a mortgage, the guaranteed return of prepayment at today's rates is worth serious consideration.What is the stress test and does it affect how I manage my mortgage after closing? The stress test, governed by OSFI guidelines for federally regulated lenders, determines whether you qualify for a mortgage by testing you at a rate higher than the one you are actually receiving. It applies at approval and does not directly affect your day-to-day mortgage management after closing. However, it is relevant again at renewal if you are switching lenders.Does this apply to variable rate mortgages as well? Yes. Prepayment privileges and payment frequency choices exist in both fixed and variable rate products, though the specific terms vary. Variable rate borrowers have additional considerations around conversion options and the timing of rate moves, which is a separate but related strategic conversation.<h3>Practical Tips for Getting More From Your Mortgage</h3>Review your prepayment allowance each year and put any available surplus toward principal before the window closes. Ask your broker what your specific prepayment terms are - not all products are the same. Choose accelerated biweekly payments at signing if your cash flow supports it. At every renewal, review the full market - not just your existing lender's offer. Understand your penalty structure before making any changes mid-term.If you want to talk through how your current mortgage is structured - or what a new mortgage could look like with these tools built in from the start - I am happy to walk through it with you. Book a call at <a data-mce-href="http://www.MortgageCall.ca" href="http://www.MortgageCall.ca" target="_blank" rel="noopener">www.MortgageCall.ca</a> or email <a data-mce-href="mailto:mortgages@snezhana.ca" href="mailto:mortgages@snezhana.ca" target="_blank" rel="noopener">mortgages@snezhana.ca</a>.

Your Mortgage Is Not Just Debt - It Is a Financial Tool. Here Is How to Use It.

Hand reaching for house and key icons on blue background

The Bank of Canada has decided to hold its overnight rate at 2.25%.That’s good news if you were worried about another rate increase… but it also leaves a big question: What happens next?<h3>What’s going on in the economy? </h3>There’s a bit of a mixed picture right now.The economy is still growing, but slowly. Spending is holding things up, while trade issues and uncertainty are slowing business activity.At the same time:<ul><li>The job market is soft</li><li>Housing activity has slowed</li><li>Affordability is still a challenge </li></ul><h3>What about inflation?</h3>Inflation came in at 2.4% in March, mainly due to higher gas prices.But here’s the important part: Core inflation is still sitting close to 2%, which is exactly where the Bank wants it.In other words… inflation is elevated, but not out of control.&nbsp; <h3>So why didn’t the Bank change rates? </h3>Because right now, they’re watching closely.<ul><li>Higher oil prices are pushing inflation up</li><li>But those increases haven’t spread across the entire economy</li><li>Longer-term inflation expectations are still stable So instead of reacting too quickly…The Bank is taking a “wait and see” approach.</li></ul>If you are like me, and you like to look at numbers, here is a table summarizing the Prime Rate changes in Canada from 2010 to today:&nbsp;<table border="1" style="border-collapse: collapse; width: 100%; float: left;" data-mce-selected="1" data-mce-style="border-collapse: collapse; width: 100%; float: left;"><tbody><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Effective Date</td><th style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">Prime Rate</th><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">Change</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">April 29, 2026</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 18, 2026</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Jan 28, 2026</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Dec 10, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Oct 29, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Sept 17, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 30, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 04, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">April 16th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 12th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Jan 29th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.25%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Dec 11th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">October 23, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Sept 4, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 24, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 5, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 12, 2023</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">7.20%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 8, 2023</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">January 25, 2023</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">December 8, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">October 27, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">September 8, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.75%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 14, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+1.00%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 2, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">April 14, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.20%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 3, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 30, 2020</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 17, 2020</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 5, 2020</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">October 25, 2018</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 12, 2018</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">January 18, 2018</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">September 7, 2017</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.20%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 13, 2017</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 16, 2015</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.15%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">January 28, 2015</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.85%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.15%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">September 9, 2010</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.00%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 21, 2010</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.75%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 2, 2010</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.50%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr></tbody></table> <h3>What this means for you as a borrower?</h3>Variable rates remain unchanged. Fixed rates are still influenced by bond yields Future rate cuts are possible, but not guaranteed This isn’t a “rates are dropping fast” environment.It’s a strategy matters more than timing environment.<h3>Bottom line </h3>The Bank is trying to balance two things:<ul><li>Keeping inflation under control</li><li>Without slowing the economy too much</li></ul>And right now, holding steady is the safest move. If you’re planning to buy, refinance, or renew, this is where having a clear plan matters more than trying to predict the next rate move.Need help understanding how this affects your mortgage? Let’s connect for a quick chat — I’ll walk you through what this decision means for your specific situation.Let’s chat! 📧 mortgages@snezhana.ca | 📲 647-893-2535 🌐 www.MortgageCall.ca

Bank of Canada Holds Rates - What This Means for You

Couple looking at tablet surrounded by moving boxes

<h3>What Tax Credits and Benefits Are Available to First-Time Home Buyers in Canada? </h3>If you purchased your first home in 2025, you may be eligible for several federal tax benefits that can reduce what you owe, or help you recover part of what you spent. These programs are offered through the Canada Revenue Agency and are worth understanding whether you have already filed your return or are preparing to.This post covers the key programs available to Canadian first-time buyers, what you need to qualify, and what to watch out for before you claim.&nbsp; <h3>The First-Time Home Buyers' Tax Credit (HBTC) </h3>The Home Buyers' Amount is a federal non-refundable tax credit designed to help offset some of the costs of purchasing a qualifying home for the first time.What it is worth: You can claim up to $10,000 on line 31270 of your federal Schedule 1. This translates to a credit of up to $1,500 against your federal income tax for 2025.Who qualifies: You (or your spouse or common-law partner) must have purchased a qualifying home in 2025, and neither of you can have owned and lived in another home in that year or in any of the four previous years. This four-year lookback is important - it means some buyers who owned property in the past may now re-qualify if they have been renting since.What counts as a qualifying home: The property must be located in Canada and registered in your name or your partner's name. It can be a single-family home, semi-detached, townhouse, condominium, or even a home under construction, as long as you move in within one year of purchase.Splitting the credit: If you purchased jointly with a spouse or common-law partner, you can split the $10,000 claim in any proportion you choose. However, the combined total cannot exceed $10,000. A practical note: because this is a non-refundable credit, it is most effective when claimed by the person who has at least $1,500 in federal tax owing. If your tax bill is lower than that, the unused portion of the credit cannot generate a refund.How to claim it: Enter up to $10,000 on line 31270 of your federal return. No supporting documents need to be filed, but keep your purchase agreement, title documents, and related paperwork in case CRA requests them later.&nbsp; <h3>The First Home Savings Account (FHSA) </h3>If you purchased in 2025 using funds from a First Home Savings Account, you likely already benefited from one of the most powerful savings tools available to Canadian first-time buyers.The FHSA allows eligible individuals to contribute up to $8,000 per year, up to a lifetime maximum of $40,000. Contributions are tax-deductible - similar to an RRSP - and qualifying withdrawals for a home purchase are entirely tax-free, similar to a TFSA. The combination makes it uniquely effective for building a down payment.If you contributed to an FHSA in 2025 and have not yet claimed the deduction, that deduction can be carried forward and applied in a future tax year when it may provide greater benefit.&nbsp; <h3>The Home Buyers' Plan (HBP) </h3>The Home Buyers' Plan allows first-time buyers to withdraw up to $60,000 from their RRSP on a tax-free basis to use toward the purchase of a qualifying home. Withdrawals made under the HBP must be repaid to the RRSP over a 15-year period, with repayment beginning no later than the second year following the year of withdrawal (for withdrawals made before January 1, 2022) or the fifth year following the withdrawal (for withdrawals made between January 1, 2022 and December 31, 2025, under the extended grace period).The HBP and FHSA can both be used toward the same home purchase, which is a significant advantage for buyers who have been saving in both accounts.<figure id="figure-vfu5xwtarimo8ri8tk"><img id="vfu5xwtarimo8ri8tk" src="https://cdn.durable.co/blocks/14lxD5WDAG42f7bCJ6t4rXgk9mOHfTh9xDtDAm8tD95UNfxtShzlA6TP8gCeKcc1.png" alt="" title="" class="object-cover bg-gray-100" style="aspect-ratio: 16/9; object-position: undefined% 30%;" data-corners="no-rounded" data-aspect="16:9" data-caption="" data-positionx="undefined%" data-positiony="30%" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/14lxD5WDAG42f7bCJ6t4rXgk9mOHfTh9xDtDAm8tD95UNfxtShzlA6TP8gCeKcc1.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined% 30%;"></figure>Common Questions First-Time Buyers Ask I owned a condo five years ago. Do I still qualify as a first-time buyer? Possibly, yes. The four-year rule looks back from the year of purchase. If you did not own and live in a qualifying home in 2025 or in any of 2024, 2023, 2022, or 2021, you likely qualify - depending on the specific timing of your previous ownership.Can my partner and I each claim the full $10,000? No. The maximum combined claim for any one home is $10,000. You can split it in any proportion, but the total cannot exceed that amount.What if I owe less than $1,500 in federal tax? The HBTC is non-refundable, which means it can only reduce your taxes to zero. Any unused portion of the credit is not returned to you as a refund.Does the home have to be my primary residence? Yes. The home must become your principal place of residence within one year of purchase.I bought with a friend, not a spouse. Can we each claim part of the credit? Yes. When multiple eligible individuals purchase the same home, they can each claim a portion of the credit, as long as the combined total does not exceed $10,000.&nbsp; <h3>Practical Checklist for First-Time Buyers Filing in 2026 </h3><ul><li>Confirm you did not own and live in a home in 2021, 2022, 2023, 2024, or 2025 (before your purchase)</li><li>Verify the home is registered in your name or your partner's name Confirm the home became (or will become) your principal residence within one year</li><li>Claim up to $10,000 on line 31270 of your Schedule 1 federal return</li><li>If filing jointly, decide how to split the claim based on each partner's tax liability</li><li>Keep your purchase agreement and title documents in a secure location</li><li>If you used an FHSA or HBP, confirm those withdrawals were properly documented and reported</li><li>Consult a tax professional if you have questions about eligibility, particularly if you had previous homeownership &nbsp; A Note on the GST/HST New Housing Rebate If you purchased a newly built home or substantially renovated property, you may also be eligible for the GST/HST New Housing Rebate, which allows you to recover a portion of the federal tax paid on the purchase.</li></ul>Separately, the new First-Time Home Buyers' GST/HST Rebate - introduced for purchase agreements signed on or after March 20, 2025 - eliminates the GST (or the federal part of the HST) entirely on new homes valued up to $1 million for eligible first-time buyers. These programs are distinct from the HBTC and worth discussing with your accountant or builder.&nbsp; <h3>Final Thought </h3>The programs covered here are among the most straightforward financial benefits available to Canadian first-time buyers. The Home Buyers' Amount in particular takes minutes to claim and requires no additional documentation at filing. If you purchased in 2025 and have not already looked into these programs, this tax season is the right time to do it.If you are planning to purchase your first home and want to understand how all of these programs fit into your broader mortgage and financial strategy, I am happy to talk it through with you.Book a call at <a data-mce-href="http://www.MortgageCall.ca" href="http://www.MortgageCall.ca" target="_blank" rel="noopener">www.MortgageCall.ca</a> or email <a data-mce-href="mailto:mortgages@snezhana.ca" href="mailto:mortgages@snezhana.ca" target="_blank" rel="noopener">mortgages@snezhana.ca</a>

First-Time Home Buyer Tax Benefits in Canada: What You Can Claim After Buying Your First Home in 2025

Building under construction with wooden roof trusses.

If you have been watching the news, you may have heard that Ontario recently made a significant move to help homebuyers. As of April 1, 2026, the province is temporarily eliminating the full 13% HST on newly built homes priced up to $1 million - and this applies to all buyers, not just first-time buyers.This is one of the largest tax incentives for homebuyers that Ontario has introduced in a very long time. Here is a plain-language breakdown of what is happening, who qualifies, and how much you could actually save.<h3>Two Programs Working Together</h3>There are now two separate programs stacking on top of each other to reduce or eliminate the HST on new construction in Ontario.1. The Federal First-Time Buyer GST Rebate (Bill C-4)This program eliminates the 5% federal portion of the HST on newly built homes for eligible first-time buyers. It covers homes priced up to $1 million (full rebate) and offers a partial rebate on homes between $1 million and $1.5 million. Purchase agreements must be signed between March 20, 2025 and December 31, 2030. The maximum savings under this program are $50,000.2. Ontario's Expanded HST RebateAnnounced on March 25, 2026, this program eliminates the 8% provincial portion of the HST on new homes for all buyers - including investors purchasing residential rental properties - for a one-year window. To access the full combined 13% relief, your purchase agreement must be signed between April 1, 2026 and March 31, 2027.When both programs are stacked together, eligible buyers can save up to **$130,000** on a single new home purchase.<h3>Who Qualifies?</h3>For Ontario's expanded rebate (April 1, 2026 to March 31, 2027)- All buyers qualify - first-time or not - The home must be newly built or substantially renovated - The home must be used as a primary residence or residential rental property - Your purchase agreement must be signed within the one-year window - For primary residences, construction must begin on or before December 31, 2028 and be substantially completed by December 31, 2031 - For rental properties, construction must be substantially completed by December 31, 2029For the federal First-Time Buyer GST Rebate:- You must be at least 18 years old - You must be a Canadian citizen or permanent resident - You must not have owned and occupied a primary residence in the current calendar year or the four preceding years - The property must be your primary place of residence - Your purchase agreement must have been entered into on or after March 20, 2025If you have previously qualified for programs like the Home Buyers' Plan (HBP) or the First Home Savings Account (FHSA), you will very likely qualify for the federal rebate as well.<h3>How Much Can You Save?</h3>To put this in concrete terms: a first-time buyer purchasing a $900,000 newly built home in Ontario between now and March 2027 could save approximately $117,000 in HST. That is more than many buyers contribute toward a down payment.For non-first-time buyers purchasing during the same window, the full 13% HST is still eliminated through the federal-provincial cost-sharing agreement - meaning you do not need to be a first-time buyer to access significant savings right now.<h3>What About Resale Homes?</h3>These rebates apply exclusively to newly built and substantially renovated homes. Resale properties are not subject to HST, so they are not eligible for either program.Can You Stack These with Other Incentives?Yes. Both rebates are separate from other federal programs, and you can combine them with:- The **Home Buyers' Plan (HBP)** - withdraw up to $60,000 from your RRSP for a home purchase - The **First Home Savings Account (FHSA)** - tax-deductible contributions and tax-free withdrawals for a first home - The **First-Time Home Buyers' Tax Credit** - a $10,000 non-refundable credit worth up to $1,500 in tax savingsHow Is the Rebate Applied?For transactions closing after April 1, 2026, the rebate is designed to be credited directly on your statement of adjustments at closing. Your builder applies it and then claims it from the CRA on your behalf - so you are not waiting for a cheque to arrive after the fact. Your real estate lawyer should confirm the amounts at closing.If you signed a purchase agreement between March 20, 2025 and March 12, 2026 (before Royal Assent on the federal bill), you are still eligible - but you will need to apply to the CRA directly to claim your federal rebate retroactively.What This Means for YouWhether you are a first-time buyer, a move-up buyer, or someone looking at purchasing a rental property, the window to take advantage of the full combined 13% HST elimination is open right now - and it closes on March 31, 2027.Understanding how these programs interact with your overall mortgage and financing strategy matters. The savings are real, but so is the importance of making sure your financing is structured properly before you sign.If you have questions about how this affects your purchasing power or want to understand your options, I am happy to walk you through it. Reach out at <a data-mce-href="http://www.mortgagecall.ca" href="http://www.mortgagecall.ca" target="_blank" rel="noopener" data-mce-selected="inline-boundary">www.MortgageCall.ca</a> or email me directly.---This blog post is for informational purposes only and does not constitute legal, tax, or financial advice. Program eligibility criteria and rebate amounts are subject to change. Please consult a qualified legal or tax professional before entering into any purchase agreement.

Ontario Just Eliminated the HST on New Homes - Here Is What You Need to Know

Hand holding house keychain above desk with notebook and pen, two wooden house models behind, symbolizing real estate deal, mortgage closing, new home keys and property investment. real estate deal

The Bank of Canada held its benchmark interest rate steady at 2.25% today, a decision that was widely expected. The Canadian economy showed some weakness heading into 2026 but the biggest wildcard is the war in the Middle East. Rising global oil and gas prices are expected to push inflation back up in the coming months, and disruptions to shipping through the Strait of Hormuz could ripple across commodity markets.In short, the economy is slowing, but inflation pressures from energy prices are pulling in the opposite direction - making it harder for the Bank to cut rates even if growth softens.What This Means for Mortgage Borrowers: Variable rate mortgage holders will see no change to their payments today. Fixed rates, however, are influenced by bond markets - and with global bond yields rising and credit spreads widening, fixed rates could face some upward pressure in the near term.If you are like me, and you like to look at numbers, here is a table summarizing the Prime Rate changes in Canada from 2010 to today:&nbsp;<table border="1" style="border-collapse: collapse; width: 100%; float: left;" data-mce-style="border-collapse: collapse; width: 100%; float: left;" data-mce-selected="1"><tbody><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Effective Date</td><th style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">Prime Rate</th><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">Change</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 18, 2026</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Jan 28, 2026</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Dec 10, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Oct 29, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Sept 17, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 30, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 04, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">April 16th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 12th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Jan 29th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.25%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Dec 11th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">October 23, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Sept 4, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 24, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 5, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 12, 2023</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">7.20%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 8, 2023</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">January 25, 2023</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">December 8, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">October 27, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">September 8, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.75%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 14, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+1.00%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 2, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">April 14, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.20%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 3, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 30, 2020</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 17, 2020</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 5, 2020</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">October 25, 2018</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 12, 2018</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">January 18, 2018</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">September 7, 2017</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.20%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 13, 2017</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 16, 2015</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.15%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">January 28, 2015</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.85%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.15%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">September 9, 2010</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.00%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 21, 2010</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.75%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 2, 2010</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.50%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr></tbody></table> <h3>Where Does the Bank Go Next?</h3>The next rate announcement is April 29th. If inflation stays elevated due to energy prices, the Bank will likely hold again. If the economy weakens more than expected and inflation stays contained, a cut becomes possible - but the Middle East conflict adds a layer of uncertainty that makes any prediction difficult right now. Borrowers in renewal or purchase conversations should plan for a "hold steady" environment for at least the next one to two rate decisions.Need help understanding how this affects your mortgage? Let’s connect for a quick chat — I’ll walk you through what this decision means for your specific situation.Let’s chat! 📧 mortgages@snezhana.ca | 📲 647-893-2535 🌐 www.MortgageCall.ca

Bank of Canada Holds Rates Again - What It Means for Borrowers

Professional managing paperwork at home office desk with laptop and documents

If you're thinking about buying a newly built home in Canada, there's a significant change you need to know about. As of March 12, 2026, a new law called Bill C-4 officially removes the federal GST on newly built homes for eligible first-time buyers. That means savings of up to $50,000 at closing - and potentially much more if Ontario's matching program becomes law.As someone who works with first-time buyers every day, I want to break this down in plain language so you can understand exactly what this means for you and your wallet - not just at closing, but over the full life of your mortgage.&nbsp; So What Is This Rebate, Exactly? When you buy a newly built home in Canada, you normally pay GST (Goods and Services Tax) on top of the purchase price. For a $700,000 home, that tax alone could add tens of thousands of dollars to your costs.This new rebate removes that tax entirely for eligible first-time buyers purchasing homes up to $1 million. For homes between $1 million and $1.5 million, you still get a partial benefit - it just decreases as the price goes up.The best part? You don't pay the tax upfront and wait for a refund. Your builder credits the savings directly at closing, so you simply pay less on the day you get your keys.&nbsp; How Much Can You Save? <ul><li>Homes up to $1 million: Up to $50,000 in savings</li><li>Homes between $1M and $1.5M: Partial savings on a sliding scale </li></ul>In Ontario, there's also a proposed provincial program that could add up to $80,000 in additional savings on the provincial portion of the tax. Combined, that's up to $130,000 in potential savings for Ontario buyers. The provincial program isn't law yet, but it's worth keeping an eye on.Here's why this matters beyond the number at closing: when you save $50,000 on what you need to borrow, you pay less interest every single month for the life of your mortgage. Over a 25-year mortgage, that $50,000 difference in your loan amount could save you an additional $30,000 to $40,000 in interest. That's your real saving - not just at closing, but over time.&nbsp; Do You Qualify? You likely qualify if all of the following are true:<ul><li>You are at least 18 years old</li><li>You are a Canadian citizen or permanent resident</li><li>You have not owned and lived in a home as your main residence at any point in the last four full calendar years</li><li>You plan to live in this home as your main residence</li><li>You will be the first person to live in the home after it's built or renovated</li><li>The home is newly built or substantially renovated (not a resale)</li></ul>A common question I hear: "I owned a home several years ago - does that disqualify me?" Not necessarily. If more than 4 full calendar years have passed since you last owned and lived in a home, you may still qualify. The same definition applies to other programs like the Home Buyers' Plan and the First Home Savings Account, so if you've used those before, you'll likely qualify here too.&nbsp; What Are the Important Dates? Your purchase agreement must be signed on or after March 20, 2025 and before January 1, 2031. Construction must start before the end of 2030 and be mostly finished before the end of 2035.&nbsp; What If You Already Closed? If you signed your purchase agreement after March 20, 2025 but closed before March 12, 2026, you are still eligible. Since the law wasn't in place yet when you closed, your builder couldn't apply the savings at that time. You'll need to claim the rebate directly through the Canada Revenue Agency. The CRA is releasing updated forms for this, so watch for those and file when they're available.&nbsp; Does This Apply to Condos? Yes - as long as it's a newly built unit (not a resale), condos qualify the same way as houses.Does This Apply to Resale Homes? No. Resale homes are not subject to GST, so this rebate doesn't apply to them.What Else Is in This New Law? Bill C-4 also included two other changes that benefit Canadians broadly.The income tax rate on the lowest tax bracket was reduced from 15% to 14% as of July 1, 2025. For most people, that works out to up to $420 per year in savings, or $840 for a two-income household. Small but helpful if you're still building up your down payment.The federal carbon tax on fuel was also permanently removed, lowering gas prices across most of Canada. That's not directly related to buying a home, but lower everyday costs make a real difference once you're a homeowner managing a mortgage.&nbsp; A Word of Caution The rebate is real and it's meaningful. But I always encourage buyers to think about the full picture, not just the savings headline. Some builders may adjust their pricing knowing buyers have access to this rebate. And a $50,000 saving is never a reason to buy a home that stretches your budget beyond what you're comfortable with.My approach has always been the same: the goal isn't the lowest rate or the biggest incentive - it's the lowest overall cost of owning your home, for the long term.What Should You Do Now? <ul><li>Check whether you meet the eligibility criteria above</li><li>If you're shopping for a new build, ask your builder directly whether the rebate will be applied at closing</li><li>If you closed after March 20, 2025 but before March 12, 2026, watch for the CRA claim forms and file when they're available</li><li>If you're in Ontario, keep an eye on the provincial rebate proposal - the combined savings could be substantial</li><li>Talk to a mortgage broker (like myself) who can show you how this rebate affects your actual monthly payments and total interest costs over time &nbsp; The Bottom Line This is one of the most significant benefits for first-time buyers of new homes that we've seen in years. Up to $50,000 in savings at closing - and potentially much more in Ontario - is money that can go toward your down payment, reduce your mortgage, and lower your long-term costs.</li></ul>Have questions about whether this rebate applies to your situation? I would love to help you work through the numbers. Let's book a call at <a data-mce-href="http://www.MortgageCall.ca" href="http://www.MortgageCall.ca" target="_blank" rel="noopener">www.MortgageCall.ca</a>, or send me an email at <a data-mce-href="mailto:mortgages@snezhana.ca" href="mailto:mortgages@snezhana.ca" target="_blank" rel="noopener">mortgages@snezhana.ca.</a>Snezhana Todorova | Mortgage Broker, BRX Mortgage

Blog

Your Mortgage Is Not Just Debt - It Is a Financial Tool. ...

Bank of Canada Holds Rates - What This Means for You

First-Time Home Buyer Tax Benefits in Canada: What You Ca...

Ontario Just Eliminated the HST on New Homes - Here Is Wh...

Bank of Canada Holds Rates Again - What It Means for Borr...

New First-Time Buyer GST Rebate: What Bill C-4 Means for ...