Housing, Housing and More Housing....

Marci Dean • November 23, 2023

Did you hear? The Federal Government released details on their plans for housing in this weeks’ Fall Economic Statement!  It's all about tackling the housing supply and affordability crisis that's keeping politicians and many Canadians up at night. 


The Liberal Government has committed to add a 3.5 million new housing units by 2030. That's a lot of new homes, if they can do it! Finance Minister Chrystia Freeland outlined the details in the House of Commons, saying her government is planning to spend $20.8 billion over six years, from which $6.3 billion is going straight into housing affordability. But here's the kicker – they're expecting a $40 billion deficit this year. Yikes, this plan is expensive! So, like it or hate it, we can all agree we need more housing and unfortunately that comes at a big cost.

 

I am going to steer clear of the politics and the macro economics of this plan and just outline the nitty gritty below. ?

 

Here's a break down of what was announced:


1.  Cracking Down on Short-term Rentals: They're giving a stern talking-to to non-compliant short-term rentals like Airbnb. The government wants more long-term homes for us Canadians, so they're nixing income tax deductions for owners who don't play by the rules. Say goodbye to tax breaks for short-term rentals in places like Toronto, Montreal, and Vancouver.


2.  Incentivizing New Housing: The government is throwing an extra $1 billion into their Housing Accelerator Fund, aiming to help build 100,000 new homes in five years. Plus, they're handing out low-cost loans, and even saying bye-bye to the GST on new rental construction, but that will cost them $1.1 billion.


3.  The Canadian Mortgage Charter: There's a new kid in town – the Canadian Mortgage Charter. It's all about making sure we get fair and timely mortgage relief if we hit a financial rough patch. If you're struggling, the government wants banks to cut some slack, like allowing temporary extensions and not charging interest on interest during relief periods. ***Watch for a lot more to come on this as we in the industry get copies of the actual document!***


4.  Clarifying the Mortgage Stress Test: Good news! The mortgage stress test won't be making a comeback for insured renewals. The stress test is the tool used by lenders to make sure you can handle your mortgage at a higher interest rate. The change is that now borrowers won't have to be “stress tested” at renewal and this applies even if they move lenders at renewal. As far as we can tell, this is “old news” and was released by OFSI a few weeks ago and since it applies to insured mortgages only, this impacts just 1 in 4 mortgages in Canada. The devil is in the details on this one so stand-by for more as soon as I get the full information AND we learn what our lenders have to say about this. 


5.  Canada Mortgage Bond (CMB) Program: They're upping the game on Canada Mortgage Bonds, planning to increase the annual limit from $40 billion to $60 billion. This extra cash – $20 billion worth – is supposed to help build 30,000 new rental apartments every year.


6.  Priority for Construction Workers: In May, the government started giving the VIP treatment to construction workers. They're fast-tracking permanent residency for those with specific skills, education, and certifications in the construction biz. So far, 1,500 lucky workers have scored permanent residency.


7.  Update on First-Home Savings Account: Remember that Tax-Free First-Home Savings Account they talked about last year? Well, it's official – over 250,000 Canadians have jumped on the bandwagon. You can save up to $8,000 a year, tax-free, for that dream home down payment. It's like a mix of the Tax-Free Savings Account and the Registered Retirement Savings Plan, but for your first home! I will be hosting a webinar on this early in 2024 with one of my Financial Planner referral partners. 


There you have it – the government's game plan to fix up the housing situation. Yes, it is expensive but we can all agree the housing shortages are a real problem in Canada. Time will tell but let's hope these initiatives make finding a home a little less stressful! ??

 

As always, please give me a call or book a time to talk below if you want to discuss your specific situation.

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How To Get A Mortgage After Bankruptcy

By Marci Deane • July 2, 2025
Sometimes life throws you a financial curveball. Bankruptcy and consumer proposals happen. It doesn’t mean your life is over, and it doesn’t mean you won’t ever qualify for a mortgage again. The key to financial success here is getting things under control as quickly as possible. You must demonstrate to the potential lenders that what happened in the past won’t happen again in the future. So if you’re thinking about getting a mortgage post-bankruptcy, lenders will want answers to the following questions: How long have you been discharged? Securing a mortgage will be dependent on how long it has been since you were discharged from your bankruptcy or consumer proposal. Most lenders consider the discharge date on both to be your new ground zero. And while there is no legally defined waiting period for when you can apply for a new mortgage post-bankruptcy, what lenders will assess is how you’re managing your finances after your financial troubles. Have you established new credit? You can show lenders that they can trust you after bankruptcy by establishing new credit and managing that credit flawlessly. So as soon as you’ve been discharged, it’s a good idea to get a secured credit card and start rebuilding your credit score. To be considered completely established, you’ll want to have two years of credit history on two trade lines with a credit limit of $2500 on each trade line. You’ll also want to make sure that you have no late or missed payments. How much do you have available for a downpayment? The more money you have to put towards purchasing a property, or the more equity you have in your property in the case of a refinance, the better your chances of getting a mortgage. The more money you bring to the table, the more comfortable a lender will feel about the risk they take of losing their investment should you run into future financial difficulty. What is your total debt service ratio? Another consideration lenders will look at is how much money you make compared to the cost of making your mortgage payments. So it probably goes without saying that the more money you make compared to the amount you want to borrow, the better. Conventional or insured financing. If you’re looking to get the best mortgage products available, here are some of the things a lender will want to see: You’ve been discharged for at least two years plus a day. You’ve established your credit (as listed above). You have at least 5% down for the first $500k of the purchase and 10% down for anything over $500k. If you don’t have a 20% downpayment, you will be required to secure mortgage insurance through CMHC, Sagen (formerly Genworth), or Canada Guaranty. The cost to service the property and all your debts don’t exceed 44% of your gross income. Alternative lending As independent mortgage professionals, our job is to provide solutions and strategies for our clients. As such, in addition to dealing with many traditional lending institutions, we also have access to lenders who specialize in working with clients whose financial situation isn't all that straightforward. These private lenders offer alternative lending solutions that consider the overall strength of your mortgage application. While you won’t qualify for the best rates and terms on the market by going with an alternative lender, if you’re looking for options, you might find that alternative lending is a very reasonable solution for you. Alternative lending isn’t for everyone, but it’s an excellent solution for some, especially if you’ve gone through a bankruptcy or consumer proposal and need a mortgage before fully establishing your credit. Get in touch anytime. So whether you’re looking for a plan to help you qualify for a mortgage with the most favourable terms or if you need something more immediate. Please connect anytime. It would be a pleasure to outline your options and work on a plan to get you a mortgage.

What You Need to Know From the CMHC 2025 Housing Market Outlook

By Marci Deane • June 26, 2025
The Canada Mortgage and Housing Corporation (CMHC) has just dropped their highly anticipated 2025 Housing Market Outlook, and if you’re a homeowner, future buyer, or just like to keep your finger on the real estate pulse, there’s a lot to unpack. Here’s the short version: The Big Picture (Canada-Wide) Mortgage rates are expected to decline in 2025, giving some long-awaited relief to buyers. Home sales and prices are heading back up, though we’re not expecting the wild ride of 2021. Rental markets are softening slightly with more supply coming online. Condo construction is slowing, while purpose-built rental and ground-oriented housing hold strong. CMHC is cautiously optimistic, but they’re also tracking risks like U.S. trade tensions and lower immigration. What About British Columbia? If you’re in BC, especially Greater Vancouver or Vancouver Island, here’s what matters most: Prices are forecast to hit new highs by the end of 2025. Sales are rebounding, thanks to lower mortgage rates and some recent financing policy changes. Tighter inventory will drive demand in townhomes and entry-level properties. Rental markets are finally seeing some relief, with rising vacancy rates and record rental construction underway. Why It Matters This isn’t just “market noise.” For buyers, sellers, renters and industry pros, these trends point to a more balanced housing environment in the next 12–18 months. That means better planning opportunities, less panic-buying, and a slightly calmer market for everyone involved. If you’re making moves in the real estate world, or just want to understand what the data says about where we’re headed, this report is worth a closer look. ➡ Download the full 3-page PDF summary here . Need help making sense of how this impacts your mortgage, buying power, or investment strategy?  Ask Marci About Mortgages. I’m always happy to walk you through it.

Older Canadians Have Mortgage Options

By Marci Deane • June 25, 2025
Although it’s ideal to have your mortgage paid off by the time you retire, that isn’t always possible in today’s economy. The cost of living is considerably higher than it has ever been, and as a result, many Canadians are putting off retirement, hoping to make just a bit more money to add to that nest egg. So if you find yourself in the position where you’re considering your mortgage options into retirement, you’ve come to the right place. The advantage of working with an independent mortgage professional instead of a single bank is choice. When you work with an independent mortgage professional, you won’t be limited to an individual institution’s products; rather, you will have access to considerably more options. Here are some options available to older Canadians as they plan for mortgage financing through their retirement. Standard Mortgage Financing If you’ve got a steady income, decent credit, and equity in your home, there is no reason you shouldn’t qualify for standard mortgage financing, which usually comes at the lowest interest rates and best terms. Some lenders use pension and retirement income to support your mortgage application even if you’ve already retired. Reverse Mortgage Financing A reverse mortgage allows Canadian homeowners 55 years and older to borrow money from their homes with no proof of income, no credit check, and no health questions. A reverse mortgage is a fabulous mortgage solution that has helped thousands of older Canadians enhance their lifestyle. Home Equity Line of Credit (HELOC) A line of credit secured to the equity you have in your home is an excellent tool to allow you to access money when you need it but not pay interest if you don’t need it. Many older Canadians like the idea of rolling all their expenses and income into one account. Private Financing If you happen to be in a bit of a tight spot, you have a plan but need a financial solution; private financing might be the answer. Indeed not the first choice for many because of the higher interest rates. However, private financing can provide you with options where a traditional bank can’t. If you have any questions about securing mortgage financing for your retirement, please connect anytime. It would be a pleasure to work with you and walk you through all your options.