WHAT’S HAPPENING IN THE MARKET?

More than 20% of Canadian mortgage holders are set to renew within the next 12 months, according to Mortgage Professionals Canada, and many will be coming out of the ultra-low rates secured during the pandemic.

With the Bank of Canada lowering its overnight rate to 2.25% and inflation continuing to ease, both fixed and variable rates are beginning to show signs of relief.

Fixed rates, tied to movements in the bond market, have been gradually trending downward, and borrowers approaching renewal may see more competitive options than they did earlier this year.

Markets can still shift quickly in response to global events, so planning ahead remains essential, especially for anyone renewing in early 2026.

THINKING ABOUT BUYING? NOW’S THE TIME TO GET PRE-APPROVED

With rates beginning to ease, future buyers have a unique window of opportunity.

Whether you’re a first-time buyer or planning your next move, getting pre-approved now can set you up for success.

A pre-approval or rate hold gives you a real advantage while you shop. Here’s why it matters:

• Lock in today’s rates for up to 120 days
• Shop with confidence, knowing exactly what you can afford
• Move quickly if the right home becomes available
• Understand your monthly payments ahead of time
• Strengthen your offer, since sellers prefer pre-approved buyers.

If purchasing is on your radar for 2026, now is an ideal time to connect. A simple pre-approval today could make a big difference tomorrow.

IS YOUR MORTGAGE COMING UP FOR RENEWAL? HERE’S WHY IT DESERVES A SECOND LOOK

If your mortgage renewal is approaching, it may feel easiest to accept the offer your lender sends, but that quick signature could end up costing you.

You’re never obligated to take your lender’s first offer, and with today’s shifting market, taking a moment to review your options can make a meaningful impact on your long-term finances.

A renewal is an ideal time to reassess whether your current mortgage still aligns with your goals.

You may be able to negotiate a more competitive rate, adjust your term or mortgage type to suit your lifestyle better, or even use your home equity to tackle renovations, consolidate debt, or pursue new investment opportunities.

In some cases, you can also switch to a new lender without needing to requalify under the Stress Test, giving you even more flexibility.

This process doesn’t have to feel overwhelming, and you don’t have to navigate it alone.

I can compare options across multiple lenders, walk you through the pros and cons of fixed and variable choices, help you explore ways to improve cash flow, and secure a rate hold while you evaluate your next steps.

Most importantly, I can ensure your mortgage continues to support your evolving financial plan rather than work against rising costs.

LET’S BUILD YOUR 2026 STRATEGY TOGETHER

Whether you’re renewing, planning ahead, or considering a purchase, now is the perfect time to explore your options.

The proper guidance today can make a significant difference tomorrow.

Reach out anytime, I’m here to help you make the most informed decision for your next mortgage chapter.

Buying a first home in Ontario has never required more strategy. Higher prices, tighter qualification rules, and stretched savings mean even well-prepared first-time buyers often look for creative (and responsible) ways to boost their buying power.

One approach that’s gaining traction—especially among my clients—is bringing parents into the process in a structured way.

Let’s break down the strategies that are working.

Why Involving Parents Works Today

Parents often want to help, but they’re unsure of the safest path. With the right structure, they can support their kids without risking their own retirement or financial stability.

The most common and effective strategies:

1. A Gifted Down Payment

The simplest approach. Parents gift funds to help with the down payment.

Why it works:

• Immediately reduces CMHC/default insurance costs
• Boosts purchase power
• Strengthens the offer in a competitive market
• Zero ongoing obligation for the parent

Where it’s most effective: Buyers looking to jump from a condo to a townhouse, or to get out of renting faster.

2. The Parental Co-Sign Strategy

Parents add their income and credit strength to the application to help the child qualify.

Why it works:

• Forces no upfront cash investment
• Helps when income is strong but debt-service ratios are tight
• Can be temporary—parents can be removed later through refinance once the buyer’s income grows and they qualify on their own

3. Joint Ownership, Done Properly

Some parents prefer a more formal investment role.

Why it works:

• Parents treat the down payment as an investment
• Children get into the market sooner
• Everyone benefits from value appreciation

Best for: Professional families thinking long-term—e.g., buying a property the child may later rent out.

4. Short-Term Equity Loan to Boost the Down Payment

Often overlooked but extremely practical.

Parents lend—rather than gift—down payment funds for 1–3 years.

Why it works:

• Keeps parents’ retirement plans intact
• Helps the child reach 20% to avoid CMHC fees
• Can be repaid once income increases or property is refinanced

If you or someone you know is considering involving a parent in a home purchase, I can map out the best strategy for the situation.

Whether it’s gifting, co-signing, lending, or joint ownership, we can evaluate the best way forward.

The Bank of Canada made another move this morning, lowering its key overnight rate by 0.25% to 2.25% — the second consecutive cut this year. While that’s welcome news for borrowers, the tone of today’s announcement suggests we may be nearing the end of this easing cycle.

Let’s unpack what this means for mortgages, renewals, and anyone considering a refinance or purchase this fall.

1. Why the Bank Cut Rates Again

The Bank’s latest Monetary Policy Report paints a clear picture: growth in Canada is slowing.

• The Bank now expects GDP growth of only 1.2% in 2025, down from earlier projections of around 1.8%.
• Inflation has settled near the 2% target, giving policymakers more breathing room.
• A softer U.S. economy and ongoing trade policy uncertainty are weighing on exports and business investment.

In short, the Bank is trying to provide a cushion for households and businesses as economic momentum cools. But they also signalled they’re approaching a level where further cuts could risk reigniting inflation.

Translation: today’s cut was about stabilizing growth, not launching a long series of rate drops.

2. What This Means for Mortgage Rates

This rate cut will first trickle down to variable-rate mortgages and home equity lines of credit (HELOCs). Most lenders will lower their prime rate by 0.25%, which means variable-rate borrowers should see a modest drop in their monthly payments.

For fixed-rate mortgages, the story is a bit different. Fixed rates are tied more closely to the bond market — and bond yields have already priced in many of these rate cuts. That means we may not see huge drops from here unless economic data deteriorates further.

3. Why This Matters for Borrowers

If you’re renewing your mortgage soon or carrying higher-interest debt, this shift creates a few strategic opportunities:

• Refinance to consolidate debt: With lower borrowing costs and softer inflation, this can be an ideal window to roll high-interest credit cards or loans into your mortgage.
• Explore shorter terms: If you believe rates could stabilize or edge lower in 2026, a 2- or 3-year fixed term might offer flexibility without locking in too high for too long.
• Reverse mortgage clients benefit too: as interest rates fall, the net cost of borrowing against home equity improves — and retirees can preserve more cash flow while staying in their homes.

4. What Comes Next

The Bank signalled that it believes rates are now “about right” for the current outlook — meaning don’t expect a long string of further cuts unless the economy worsens. Inflation is projected to hover near 2% for the next few years, so the Bank is more likely to hold steady while it assesses how consumers and businesses respond.

For the mortgage market, that means stability. We’re shifting from a volatile, “wait-and-see” environment to one where planning and proactive advice matter most.

5. My Takeaway

For Ontario homeowners and buyers, today’s decision is good news — but not a green light to overextend.

Lower rates can ease monthly payments and improve affordability, but slower economic growth also means lenders remain cautious. If you’re renewing, refinancing, or buying, now is the time to review your full financial picture — not just chase the lowest rate.

Smart strategy beats rate chasing every time.

Whether you’re exploring a refinance, a debt-consolidation plan, or want clarity on where rates are headed, I’m happy to help you map out your next move.

Bottom Line

• BoC rate: cut to 2.25%
• Inflation: steady near 2%
• Growth: slowing to 1.2% in 2025
• Outlook: likely pause ahead

Lower rates are here — but the Bank’s tone signals we’re closer to the bottom than the beginning.

Now’s the time to take advantage of improved affordability and align your mortgage strategy with the new landscape.

Reach out if I can help.