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Mortgage advisor consulting with couple at conference table, discussing refinancing options with financial charts on tablet

The federal government released Budget 2026 on November 4, and housing is a big part of it. Most of the budget will not change your day to day life, but a handful of measures speak directly to mortgages - how much you can borrow, what your payment looks like, and how you shop for a rate. Here is what matters, in plain language.<h3>1. Insurable mortgages open up to homes priced up to $1.5 million </h3>This is the biggest one for buyers with a larger down payment.When you put 20% or more down, your mortgage can be insurable - your lender can insure it, and that insurance is what gives many lenders the confidence to offer their best rates. Today, insurable mortgages are capped at homes priced up to $1 million, with a maximum 25 year amortization.Budget 2026 proposes raising that limit to $1.5 million, and allowing 30 year amortizations on these insurable mortgages, as long as at least one borrower is a first-time home buyer or the home is newly built.To be clear, this is different from an insured mortgage: if you put less than 20% down, your insured mortgage already covers homes up to $1.5 million - that change came in December 2024. This budget closes the same gap for buyers putting 20% or more down.What that means in practice: if you are buying in the $1 million to $1.5 million range - very common in the GTA - you may soon have access to insurable mortgage pricing and a 30 year amortization, which lowers your monthly payment compared to a 25 year amortization.<h3>2. New financing for small multi-unit builds (starts February 1, 2027) </h3>The government is moving ahead with mortgage insurance changes for "missing middle" housing:New insured construction financing for newly built 3 and 4 unit homes - up to 90% of the property value, with no maximum property value and no requirement for the builder to live in one of the units Once built, the owner can keep the property with an insured mortgage amortized over up to 30 years, or sell the homes individually Private mortgage insurers will be able to offer mortgage loan insurance on 5 to 50 unit residential properties These changes take effect February 1, 2027. If you are a small-scale builder, or thinking about a multi-unit property, this changes the financing math.<h3>3. The Bank of Canada will publish insured mortgage rates </h3>Budget 2026 proposes new regulations so that information on insured mortgage rates is published by the Bank of Canada. The idea is simple: better, more timely rate information makes it easier to compare lenders and shop for the best rate instead of guessing.<h3>4. CRA income verification is coming to mortgage applications </h3>The government proposes giving the CRA the authority to provide an income verification service directly to mortgage lenders and insurers, with $13 million over 3 years to develop and pilot it.For you, that could mean a smoother application with less back and forth on income documents. For the system, it helps deter mortgage fraud.<h3>5. Prepayment penalties under the microscope </h3>The government announced it will consult on reforms to make prepayment penalties on insured mortgages more transparent, so you can understand and compare the real cost of paying off your mortgage early before you sign, not after.<h3>Also worth knowing </h3>The ban on foreign purchases of existing homes is extended 2 more years, to January 1, 2029. Newly built homes are exempt. The GST relief for first-time buyers on new homes stays in place - savings of up to $50,000 on a new build. Deposit insurance is proposed to increase to $250,000, including temporary higher coverage for life events like the sale of a home. Good news if you are holding sale proceeds or a large down payment in a bank account. The bottom line Most of these are proposals, so the final rules and start dates will come as the government publishes the details - the multi-unit insurance changes already have a firm date of February 1, 2027. The direction is clear though: more flexibility on insured and insurable mortgages, more transparency on rates and penalties, and more financing for the smaller multi-unit homes our communities need.If you are planning a purchase, a renewal, or a small build and want to know how any of this applies to you, <a data-mce-href="https://calendar.app.google/JUgvWk1PQXrh3vdL6" href="https://calendar.app.google/JUgvWk1PQXrh3vdL6">book a quick call</a> and we will walk through it together.Snezhana Todorova 647-893-2535 mortgages@snezhana.ca

Federal Budget 2026: What It Means for Your Mortgage

Diverse couple reviewing loan documents and insurance coverage at home using laptop and digital financial tools

Bank of Canada Raises Its Rate: What Actually Moves Your Mortgage Rate Now

Bank of Canada Holds Again: What Actually Moves Your Mortgage Rate Now

Couple joyfully holding their mortgage approval letter in front of their new home with moving boxes

Most mortgage conversations in Canada start with the same question: what does your income look like on paper? For many borrowers, that question is straightforward. For others - business owners, retirees, self-employed professionals, and seasoned investors - it creates an immediate obstacle, even when their overall financial position is strong.If you have spent years building an investment portfolio, structured your income tax-efficiently, or draw earnings from a corporation, your T4 or Notice of Assessment may not reflect your real capacity to carry a mortgage. Standard qualifying looks at that number and sometimes stops there.The Networth Program is a lesser-known mortgage solution designed specifically for this type of borrower. It allows Canadians with significant invested assets to qualify for a mortgage without liquidating those assets - and without relying exclusively on traditional income documentation.This post explains how it works, who it is for, and what you need to qualify.<h3>What Is the Networth Program, and Who Is It Designed For?</h3>The Networth Program is an alternative mortgage qualifying framework offered through select lenders in Canada. Rather than relying solely on employment income or business income as shown on a tax return, it considers the borrower's overall asset position - specifically their invested assets - as part of the qualifying picture.It is designed for borrowers who have accumulated significant wealth but whose documented income does not reflect their full financial strength. Common profiles include:- Business owners who retain income inside a corporation and draw a modest salary- Retirees who live primarily off investment income or portfolio drawdowns- Self-employed professionals whose net income after deductions falls below standard thresholds- Investors with substantial non-registered or registered portfolios who prefer not to liquidateThe core concept is straightforward: if your assets demonstrate long-term financial stability and the capacity to support a mortgage, your income documentation alone should not be the deciding factor.<h3>What Are the Requirements to Qualify?</h3>The Networth Program has specific eligibility criteria. While individual lenders may apply slight variations, the primary requirements are:MINIMUM INVESTED ASSETS: $250,000 or more in verifiable invested assets. These assets must be documented and may include non-registered investment accounts, registered accounts (RRSP, TFSA), or other qualified portfolios. Equity in real estate is typically not included.DOWN PAYMENT: A minimum of 20% is required. This is an uninsured mortgage, which means CMHC mortgage default insurance does not apply. The down payment can come from existing savings or from assets - however the assets used for down payment may affect the overall calculation depending on the lender.CREDIT: Strong credit is a firm requirement. Lenders using this program are extending flexibility on income documentation, which means the credit profile carries additional weight. A strong credit score and a clean credit history are non-negotiable.PROPERTY TYPE: Typically applies to owner-occupied residential properties. Investment property or rental purchases would require a separate review.<h3>Do You Have to Sell Your Investments to Qualify</h3>No. This is one of the most important distinctions of the Network Program.The purpose of this program is not to use your investments as a source of funds - it is to use the existence and value of those investments as evidence of financial stability and qualifying capacity. Your portfolio is considered as part of your overall financial picture, not as collateral or a required source of funds.Your investments stay where they are. They continue to grow, generate returns, and serve their intended purpose. You access the mortgage and make your purchase independently of the portfolio.This matters enormously for borrowers who have spent years building an investment strategy. Liquidating a portfolio - even partially - can trigger significant tax consequences, interrupt compound growth, and disrupt a carefully constructed financial plan. The Networth Program allows you to keep that structure intact.<h3>Is the Network Program Right for You?</h3>This program is not for everyone, and it is not a workaround for weak financial fundamentals. It is designed for borrowers who genuinely have the financial capacity to carry a mortgage - they simply need a qualifying framework that reflects their actual position rather than a narrow slice of it.You may be a strong candidate if:- You have $250,000 or more in invested assets and do not want to liquidate them- Your documented income does not reflect your full financial strength- You have at least 20% available for a down payment- You have strong credit and a responsible credit history- You have been declined or sidelined by a traditional lender based on income aloneBefore you assume you do not qualify, it is worth having the actual conversation.RELATED FAQsQ: Can I use my RRSP or TFSA to satisfy the $250,000 minimum?A: Registered accounts including RRSPs and TFSAs may be considered, though specific treatment varies by lender. A mortgage broker can help you understand how your specific asset mix is evaluated.Q: Does this program apply to rental or investment properties?A: The Network Program is generally designed for owner-occupied residential purchases. Investment property purchases would be evaluated under different criteria.Q: Will I pay a higher interest rate than a standard mortgage?A: Typically, no.Q: Can I refinance or switch lenders at renewal?A: Yes. At renewal, you can reassess your options across the full market. If your income situation has changed or your equity position has grown, you may qualify for more conventional products at that stage.PRACTICAL TIPS1. Document your assets thoroughly before starting the application. Organized, current investment statements make the process significantly smoother.2. Understand your credit score before applying. Strong credit is a firm requirement - check your profile in advance and address any issues first.3. Be clear about your down payment source. The 20% minimum must be verified and sourced appropriately.4. Work with a broker who has access to majority of lender networks. This program is not available through all channels.CLOSINGIf you have been holding off on a purchase because of income concerns - and you have significant invested assets - you may have more options than you realize. The right program matched to the right borrower makes all the difference.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" data-mce-selected="inline-boundary">mortgages@snezhana.ca</a>

Can You Qualify for a Mortgage Without Relying on Your Employment Income in Canada?

Modern open-plan mortgage office with multiple loan officers assisting diverse clients, bright windows, contemporary furnishings

On June 10th, the Bank of Canada held its overnight rate at 2.25% for the 5th consecutive time, leaving the Prime rate unchanged at 4.45%. The decision was not a surprise - but what Governor Tiff Macklem said about what comes next is worth paying attention to.The Bank is being pulled in two directions at once. If the U.S. imposes major new tariffs on Canada, economic growth takes a hit and rate cuts become more likely. But if Middle East conflict keeps energy prices elevated and that pressure spreads through the broader economy, the Bank may need to raise rates instead. Inflation currently sits at 2.8% - up, but not yet broadly concerning.In other words, the Bank is holding steady precisely because the risks are pointing in opposite directions. The next announcement is July 15th, and the economic data between now and then will drive the decision.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;">June 11, 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;">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.For anyone with a variable rate mortgage or a renewal coming up in the next 12 months, this is a good time to have a strategy conversation - before the direction becomes clearer and your options narrow. 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 - Here Is What It Actually Means

Most Canadian borrowers spend a significant amount of time comparing mortgage rates before they sign. Very few spend the same amount of time understanding what it will cost to exit that mortgage before the term ends.That conversation matters more than most people realize. And it is one that tends not to happen at the bank.The short answer: A mortgage penalty is a fee your lender charges if you break your mortgage before the end of your term. The amount depends on your mortgage type, your lender, and - critically - where interest rates are at the time you want to leave.<h3>Why Do Mortgage Penalties Exist? </h3>When a lender offers you a fixed rate for five years, they are making a commitment. They are pricing your loan based on current market conditions and taking on the risk that rates will move. If you exit early, the lender may lose the income they anticipated. The penalty compensates for that loss.For variable rate mortgages, the penalty is typically simpler. For fixed rate mortgages - especially at major Canadian banks - the calculation is more complex, and in many market conditions, considerably more expensive.&nbsp; <h3>How Are Canadian Mortgage Penalties Calculated? </h3>There are two main penalty methods in Canada.Three Months Interest This is the standard penalty for variable rate mortgages and is often the baseline for fixed rate mortgages as well. It is calculated using your outstanding mortgage balance, your current rate, and three months of interest at that rate.Interest Rate Differential (IRD) This is specific to fixed rate mortgages and is calculated based on the difference between your original rate and the rate your lender can now offer for the remaining term. The lender uses this difference to estimate what they would lose by releasing you from your contract.For fixed rate mortgages, the penalty is the greater of three months interest or the IRD.<h3>The Big Bank IRD Problem</h3>Here is where things become important. Major Canadian banks typically calculate the IRD using posted rates rather than the discounted rate you actually received. This creates a wider gap than most borrowers expect.As rates fall, the differential between the posted rate used in your contract and the current posted rate widens. The result: the more rates drop, the higher your penalty grows. The market gives you a lower rate and simultaneously makes it more expensive to access it.This is not a glitch. It is how these contracts are written. And it is information that rarely surfaces clearly before signing.<figure id="figure-erscw1sx99mph8hp2c"><img id="erscw1sx99mph8hp2c" src="https://cdn.durable.co/blocks/19TwHqOQERQnqGe1m3G8bSZ3lVGgyfQhFo4E6U4ZPn5jMP66lhfIW6srFh3e51WE.png" alt="" title="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="default" data-aspect="16:9" data-caption="" data-positionX="undefined" data-positionY="undefined" data-fullWidth="false"/></figure>The variable rate penalty is predictable and, while not small, is a number most borrowers can plan around. The fixed rate IRD penalty in a falling rate environment is a different conversation entirely.<h3>What Else Is Included in Your Exit Costs? </h3>The penalty is the largest line item, but it is not the only one. A full exit cost picture for a Canadian mortgage may include:Discharge Fee: A lender's administrative fee to release the mortgage from title. This typically ranges from a few hundred dollars to around $350, depending on the lender. It is not a penalty, but it is real.Reinvestment Fee: Some lenders charge this as a flat fee in addition to or instead of an IRD, particularly mono-line lenders. Reading your commitment carefully matters here.Porting Restrictions: If you plan to carry your mortgage to a new property rather than breaking it, your ability to do so depends entirely on what your contract allows. Some lenders have strict timelines, portability conditions, or top-up restrictions that can make porting impractical.Cash Back Repayment: This is the one that surprises people most consistently. If you took a cash back mortgage - where the lender provided a lump sum at signing in exchange for a higher rate - you may be required to repay all or a portion of that cash back if you break the mortgage early. Some lenders prorate the repayment based on time remaining. Others require the full amount back regardless of timing, even if you leave one day before maturity.<h3>&nbsp; Frequently Asked Questions </h3>Can I avoid a penalty if I wait until the end of my term? Yes. If you let your mortgage mature naturally, no prepayment penalty applies. You are free to renew, transfer to a new lender, or refinance without penalty at that point.What is the difference between breaking a mortgage and transferring it? A transfer (also called a switch) moves your mortgage to a new lender at renewal without triggering a penalty. It is different from breaking your mortgage mid-term, which does trigger the penalty. Transfers at renewal are penalty-free and are one of the most underused tools Canadian borrowers have.Does the penalty go away if I port my mortgage? In most cases, yes. Porting means carrying your existing mortgage to a new property rather than discharging it. If your contract allows porting and you meet the lender's conditions, no penalty applies. However, porting rules vary significantly by lender, and the window to complete a port is usually limited to 30 to 90 days.Does it ever make sense to pay the penalty? Sometimes. If the rate savings over the remaining term exceed the penalty cost, breaking can make financial sense. This calculation requires comparing the new rate, the amount of time left, and the full penalty figure. A broker can run this math for you before you decide.Are penalties the same at all lenders? No. Credit unions, mono-line lenders, and Schedule B lenders often calculate IRD differently than major banks. Some use the discounted rate as the reference rather than the posted rate, which can result in a considerably smaller penalty. Lender selection is not just a rate decision. It is a structure decision.&nbsp; <h3>Practical Tips Before You Sign </h3><ul><li>Ask your broker to explain the full penalty calculation methodology for any mortgage you are considering, not just the rate.</li><li>If a cash back incentive is part of the offer, understand the full repayment terms before accepting it.</li><li>Request a disclosure of all exit-related fees: penalty, discharge, reinvestment, and any portability conditions.</li><li>If you anticipate a life change within the next five years - a move, a growing family, a business income shift - factor the cost of exiting early into your product choice.</li><li>Variable rate mortgages at most lenders carry a simpler, more predictable penalty structure. That predictability has real value in certain situations even when the rate is slightly higher than a fixed alternative.</li></ul><h3>The Bottom Line </h3>A low entry rate is worth pursuing. But the full cost of a mortgage includes how much it costs you to leave it. Understanding both sides of that equation - entry and exit - is how you build the lowest total cost of borrowing, not just the lowest payment on paper.If you are reviewing a mortgage commitment and want to understand what you are committing to beyond the rate, we can definitely talk on the phone.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>Snezhana Todorova is a licensed mortgage broker with BRX Mortgage (Lic 13463), serving clients in Guelph, Ontario and virtually across Ontario.

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