Hold On...

Marci Dean • March 7, 2024
The Bank of Canada has decided not to change its benchmark rate in its latest decision.


  • This keeps rates steady for the fifth consecutive time.
  • The overnight rate, which affects variable mortgage rates, stays at 5.0%, the same rate since July 2023. (Bank prime is still 7.20%)
  • There were no surprises in this Bank announcement today.
  • The Bank of Canada is still concerned about inflation risks and wants to see more easing in core inflation.
  • Last month, inflation decreased more than expected to 2.9%, inching closer to the Bank's target rate, which was good news, but……
  • The Canadian economy expanded in the fourth quarter and grew at a 1.0% annualized rate.
  • The speech from the US Treasury later this week will give a better sign on the possible trajectory of the rates both north and south of the Border.
  • Another thing to look for is the job numbers both here in Canada and in the US as these will have an impact on interest rate movement and timing of cuts.


All this to say it is a delicate balancing act right now and there is not enough economic incentive for the BOC to start cutting rates!

 

Leading economists still expect the Bank to lower the policy rate to 3% by 2025, with a 33% chance of a cut in April at the next Bank of Canada meeting. Most economist now think rate cuts will be delayed until the summer. I follow many economists and experts on the Canadian Economy and one of my favourites if Benjamin Tal. Here is what he has had to say after yesterday’s news from the BOC:


Still, while its tone was slightly more hawkish than many had expected, Tal said the central bank had good reason not to give away the game on when it’s likely to begin bringing rates down.


“What’s interesting is the language of the statement, which is not as dovish as some people expected,” Tal told Canadian Mortgage Professional after yesterday’s announcement. “There’s no hint of any cuts coming. They’re concerned about sticky inflation – and I think it makes sense.


Tal went on to say: …. the central bank is still likely to cut in June.


Time will tell if Ben has it right!


Fixed rates for a three-year term are now hovering in the low 5% range while the 5-year fixed rates are a bit lower than this, some even starting with a 4! The trouble with locking in for 5 years is that if/when rates drop further the penalty to break and refinance for an even lower rate could be very costly. Everyone’s situation is different so please reach out if you would like to discuss your mortgage renewal options.


Meanwhile, the real estate market is picking up with an up tick in listings and many buyers coming off the side lines. We do expect that this will continue through 2024 and if/when the BOC cuts and prime drops, activity heat up. If you want to consider your options for buying or selling and upsizing, now is the time to run the Mortgage Math!


The Bank's next announcement is scheduled for April 10, 2024! 🏠💰


As always, if you want to review your own personal mortgage please reach out for a complimentary Mortgage Review.

Let's Talk About Mortgage Renewals In 2024

At the risk of sounding like a broken record, today’s uncertain rate environment means mortgage renewals are more complicated!


Here are some things to consider if you have an upcoming mortgage renewal:


  • Confirm that your lender’s renewal offer includes all available terms.
  • Know that the lender’s first offer isn't always their best offer.
  • Ask for a quote that includes the rate and the new payment.
  • Understand that Mortgages can be moved to a new lender at renewal and this is often without a cost to the borrower!
  • The time to shop for a new mortgage is 3 - 6 months before your maturity date.

 


If you would like to explore all of your renewal options be sure to reach out to book a call.


If you want me to monitor your mortgage you can sign up for this service here!

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Monthly vs. Biweekly Mortgage Payments: Which Is Better?

By Marci Deane • October 14, 2026
How Mortgage Payment Frequency Affects What You Pay Over Time You’ve probably heard the saying that there are two certainties in life: death and taxes. When it comes to your mortgage, there’s really just one certainty—you’ll repay what you borrow, plus interest. What is flexible, though, is how often you make your mortgage payments. And that choice can have a meaningful impact on how quickly you pay down your mortgage and how much interest you pay over time. The Six Mortgage Payment Frequencies Most lenders offer the following payment options: Monthly – 12 payments per year Semi-monthly – 24 payments per year Bi-weekly – 26 payments per year Weekly – 52 payments per year Accelerated bi-weekly – 26 payments per year Accelerated weekly – 52 payments per year Standard Payment Frequencies The first four options are designed to align with how you get paid. For example: Paid monthly? Monthly mortgage payments may make sense. Paid every two weeks? Bi-weekly payments can align nicely with your cash flow. With these standard options, regardless of how often you pay, the total amount paid over the year is the same —it’s simply divided into more frequent payments. What Makes “Accelerated” Payments Different Accelerated payments work differently—and this is where the real savings happen. With accelerated bi-weekly or accelerated weekly payments, you’re paying a slightly higher amount each time. That extra money goes directly toward reducing your mortgage principal, which lowers the interest you’ll pay over the life of the mortgage. A Simple Example Let’s assume a $1,000 monthly mortgage payment: Monthly: $1,000 once per month = $12,000 per year Semi-monthly: $500 twice per month = $12,000 per year Bi-weekly: $1,000 × 12 ÷ 26 = $461.54 every two weeks = $12,000 per year Accelerated bi-weekly: $1,000 ÷ 2 = $500 every two weeks = $13,000 per year With accelerated bi-weekly payments, you effectively make two extra payments per year without having to think about it. Those extra payments reduce your principal faster, which lowers interest costs over time. Accelerated weekly payments work the same way—you just make smaller payments more frequently. Why This Matters Long Term While it’s difficult to calculate exact savings due to variables like interest rates, terms, and amortization changes, maintaining an accelerated payment schedule over the life of your mortgage can reduce your amortization by up to three years and save a significant amount of interest. The Bottom Line Accelerated payments are a simple, automatic way to lower your overall cost of borrowing—without needing to make lump-sum payments or drastically change your budget. If you’d like to see how different payment frequencies would impact your mortgage specifically, feel free to reach out anytime. I’d be happy to walk through the numbers with you and help you choose the option that fits your goals.

How to Maximize Your Mortgage Renewal Opportunity

By Marci Deane • October 7, 2026
Your Lender Is Not Obligated to Renew Your Mortgage Many homeowners assume that if they’ve made every mortgage payment on time, their lender is automatically required to renew their mortgage at the end of the term. That’s a common belief—but it isn’t true. When you sign a mortgage, you’re agreeing to a contract for a specific term . Once that term ends, the lender has the legal right to either renew the mortgage or call the loan . There is no obligation to offer a renewal. In practice, most lenders do renew mortgages—but certain situations can prevent that from happening. Reasons a Lender May Decline to Renew A lender may choose not to renew if: Mortgage payments were missed during the term A bankruptcy or consumer proposal has occurred There is a separation or divorce Employment or income has changed A borrower on the mortgage has passed away The lender no longer prefers the property’s location or market The lender is no longer licensed to lend in Canada Even one of these factors can change how a lender views the risk. Why This Matters Because renewal is not guaranteed, waiting until the last minute can put you in a difficult position. Understanding this reality early gives you time and control. How to Protect Yourself at Renewal The best approach is to be proactive. Ideally, you should begin reviewing your options 120 days before your mortgage term ends . This gives you enough time to explore alternatives and make informed decisions—rather than reacting under pressure. Even if your current lender offers a renewal, that’s just one option , not automatically the best one. The lender that was right for you years ago may no longer offer the most competitive rate, terms, or flexibility today. The goal at renewal isn’t convenience—it’s reducing your total cost of borrowing and choosing terms that align with your current situation. Why Work With an Independent Mortgage Professional Working with an independent mortgage professional ensures someone is advocating for you , not the lender. Instead of being limited to one set of products, you can compare options across multiple lenders and choose the solution that best protects your interests. Final Thoughts Whether your lender is offering a renewal or not, the smartest move is to review all your options before signing anything. If your mortgage is coming up for renewal—or if you want to plan ahead—feel free to connect anytime. I’d be happy to help you protect your options and make a confident decision.

How Property Type and Condition Influence Mortgage Financing

By Marci Deane • September 30, 2026
Why the Property Matters When You’re Qualifying for a Mortgage When qualifying for a mortgage, lenders typically look at four core areas: Income Credit Down payment or equity The property itself Most buyers focus heavily on income, credit, and savings—and for good reason. But even if those boxes are checked, the property can still determine whether a mortgage is approved. Why Lenders Care About the Property From a lender’s perspective, the property is the collateral for the mortgage. In the unlikely event of default, they need to know the home can be sold quickly and at fair market value to recover their funds. Because of this, lenders are careful about the condition, value, and marketability of any property they finance. Homes that are in poor repair, unconventional, or overpriced can raise red flags—even when the borrower is well qualified. Appraisals Are Always Part of the Process Every mortgage requires an appraisal to confirm value. Insured mortgages (through CMHC, Sagen, or Canada Guaranty) often use an automated valuation model completed online. Conventional mortgages typically require a full, on-site appraisal by a certified appraiser. This appraisal is not optional and happens after an offer is accepted—not at the pre-approval stage. Why Pre-Approvals Aren’t a Guarantee A pre-approval is a great first step, but it only assesses you, not the property. Once you’ve made an offer, the lender must approve the specific home you’re buying. Understanding this upfront helps avoid surprises and confusion later in the process. The Risk of Buying Without a Financing Condition In competitive markets, buyers sometimes remove financing conditions to strengthen their offer. However, this comes with risk. If the appraisal comes back low—or the lender is concerned about the property’s condition—you could be denied financing after the offer is firm. In that scenario, your deposit may be at risk. Buying a Home That Needs Work If you’re considering a property that isn’t in perfect condition, there are solutions. A purchase plus improvements program allows you to buy a home and include renovation costs in your mortgage. The process is structured and requires planning, but it can be an excellent way to turn a fixer-upper into a great long-term investment. Final Thoughts Mortgage approval isn’t based solely on your finances—the property matters just as much. Knowing this ahead of time helps you make smarter offers, reduce risk, and plan more effectively. If you’re buying a property that needs work or want clarity on how a lender may view a specific home, feel free to reach out. I’d be happy to walk you through your options and help you plan with confidence.