Latest Mortgage Stats | 2018

Marci • May 2, 2018

There have been a number of reports released over the past few weeks that have provided some interesting insight into the state of the housing and mortgage markets.

New reports have touched on everything from 2018 renewal rates, foreign buyer statistics and credit quality to the latest financial crunch facing condo investors.

Here are some of the highlights:

Nearly 50% of Existing Mortgages to Renew in 2018

An estimated 47% of existing mortgages are expected to be coming up for renewal this year, according to a recent CIBC Capital Markets report. That’s up significantly from the 25% to 35% that typically come up for renewal each year.

“Over the past two to three years, as home prices have risen unchecked, you’ve had people trying to get into the housing market unable to afford longer-term mortgages and taken out short-term mortgages,” Ian Pollick, CIBC’s executive director and head of North American Rates Strategy, explained in an interview with Canadian Press. “And in 2018, everything is falling on top of one another.”

With higher interest rates today and stricter mortgage qualification rules in place, many existing homeowners could be in for a rate shock at renewal time.

The stress test on uninsured mortgages introduced as part of the new  B-20 guidelines applies not only to new buyers, but also existing buyers who decide to leave their current lender, perhaps in search of a cheaper rate elsewhere. For the estimated 1-in-6 renewers who won’t able to qualify at the Bank of Canada’s benchmark 5-year posted rate, they will have no choice but to remain with their current lender and likely settle for a less competitive rate.

TD, RBC Hike Fixed Rates

Earlier this week TD Bank raised its 5-year posted rate by 45 bps to 5.59%, the highest it’s been since 2011.

It also raised posted rates for its 2-year, 3-year, 6-year and 7-year terms.

And just today, RBC  confirmed  to BNN that it will also be raising its fixed rates, effective April 30. The bank said it will hike its 5-year and 10-year rates by 20 basis points, its 1-year and 4-year fixed rates by 15 basis points, and that it will lower its variable closed mortgage rate 15 basis points.

One more of the Big 6 banks is expected to make a move in the coming week.

Despite the increases to the posted rates, most bank customers with sound credit are offered rates that are more competitive. The average 5-year fixed rate available from the Big 5 banks in March (to well-qualified borrowers) was 3.39%, according to RateSpy.com.

Foreign-Buyer Home Sales Drop in Toronto

The number of foreign-buyer home purchases in Toronto has fallen to 2.5%, according to Ontario’s Finance Ministry.

That’s down from a peak of 7.5% in May 2017, just after the introduction of the province’s 15% tax on homes sold to international buyers. Across the Greater Golden Horseshoe, which encompasses a larger geographic area around Toronto, foreign buyer sales have fallen to 1.6%, down from 4.7% the month after the new tax was introduced. However, even in areas where the tax does not apply — outside of the Greater Golden Horseshoe — sales to international buyers was also down, from 2.6% of all transactions last spring to 1.7%.

In a statement, Finance Minister Charles Sousa declared the foreign buyers tax a success: “Our data continues to indicate that our Fair Housing Plan measures have helped to calm the housing market.”

The average price of a house in the Greater Toronto Area has fallen about 14%, from $920,000 last spring to $785,000 in March 2018.

Toronto Condo Investors Subsidizing Tenants

Investing in condos is big business in Toronto, as investors accounted for nearly half of all new condo sales in the Greater Toronto Area last year.

But with rising real estate prices, it has become increasingly difficult for those investors to cover their expenses with rent. At least 44% of those who took possession in 2017 and have a mortgage are in a negative cash flow position, according to a CIBC Capital Markets  report.

Of those, 34.5% reported rental income that falls short of their monthly carrying costs by $1,000 each month, while 20.1% say they are short by $500–$1,000 a month.

The report’s authors estimate that for units that were pre-sold and that are due for completion by 2021, rent would need to rise 17% to cover costs based on a 20% down payment and no rise in interest rates. If interest rates were to increase by 100 bps, rent would need to increase by 28%, they wrote.

Vancouver’s Empty-Homes Tax to Generate $30M

Vancouver’s tax on empty homes is expected to generate $30 million in revenue in its first year, Vancouver Mayor Gregor Robertson said this week.

The tax — the first of its kind in Canada — requires homeowners who don’t live in or rent out their properties to pay a 1% tax based on the assessed value of their home.

Robertson announced that $17 million had already been collected from approximately 1,200 owners with properties that were deemed vacant or underutilized for at least six months of the year. That’s just a small percentage of the total 8,500 city properties that officials say fall under the designation, however.

More than 5,000 homeowners have received exemptions from the tax, another 1,000 are currently disputing it and others failed to make any declaration about their properties.

Of the 1,200 property owners who paid the tax, some were billed as much as $250,000 for the 2018 tax year, according to a  Globe and Mail   article.

 

This article was written by Steve Huebl and originally appeared on  Canadian Mortgage Trends  on April 27th 2018, Canadian Mortgage Trends is a publication of Mortgage Professionals Canada. 

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Is Alternative Lending the Right Choice for Your Mortgage Needs?

By Marci Deane • December 17, 2025
Alternative Lending in Canada: What It Is and When It Makes Sense Not everyone fits into the traditional lending box—and that’s where alternative mortgage lenders come in. Alternative lending refers to any mortgage solution that falls outside of the typical big bank offerings. These lenders are flexible, creative, and focused on helping Canadians who may not qualify for traditional financing still access the real estate market. Let’s explore when alternative lending might be the right fit for you. 1. You Have Damaged Credit Bad credit doesn’t have to mean your homeownership dreams are over. Many alternative lenders take a big-picture approach . While credit scores matter, they’ll also look at: Stable employment Consistent income Size of your down payment or existing equity If your credit has taken a hit but you can demonstrate strong income and savings—or have a solid explanation for past credit issues— an alternative lender may approve your mortgage when a bank won’t. Pro tip: Use an alternative mortgage as a short-term solution while you rebuild your credit, then refinance into a traditional mortgage with better terms down the line. 2. You're Self-Employed Being your own boss has its perks—but mortgage approval isn’t usually one of them. Traditional lenders require verifiable, consistent income—often two years’ worth. But self-employed Canadians typically write off significant expenses, reducing their declared income. Alternative lenders are more flexible and understanding of self-employed income structures. If your business is profitable and your personal finances are healthy, you may qualify even with lower stated income. Even if interest rates are slightly higher, this option is often worth it—especially when balanced against tax planning and business deductions . 3. You Earn Non-Traditional Income Today’s income sources aren’t always conventional. If you earn through: Airbnb rentals Tips and gratuities Rideshare or delivery apps (like Uber or Uber Eats) Commissions or contracts You might face challenges with traditional lenders. Alternative lenders are often more willing to work with these non-standard income streams , especially if the rest of your mortgage application is strong. Some will consider a shorter income history or evaluate your average earnings in a more flexible way. 4. You Need Expanded Debt-Service Ratios Canada’s mortgage stress test has made it harder for many borrowers to qualify with big banks. Alternative lenders can offer more generous debt-service ratio limits —meaning you might be able to qualify for a larger mortgage or a more suitable home, especially in competitive markets. While traditional GDS/TDS limits typically sit at 35/42 or 39/44 (depending on your credit), some alternative lenders will go higher, especially if: You have a larger down payment Your loan-to-value ratio is lower Your overall financial profile is strong It’s not a free-for-all—but it’s more flexible than bank lending. So, Is Alternative Lending Right for You? Alternative lending is designed to offer solutions when life doesn’t fit the traditional mold . Whether you're rebuilding credit, running your own business, or earning income in new ways, this path could help you get into a home sooner—or keep your current one. And here’s the key: You can only access alternative lenders through the mortgage broker channel . Let’s Explore Your Options Not sure where you fit? That’s okay. Every mortgage story is unique—and I’m here to help you write yours. If you’re curious about alternative mortgage products, want a second opinion, or need help getting approved, let’s talk . I’d be happy to help you explore the best solution for your situation. Reach out anytime. It would be a pleasure to work with you.

Bank of Canada Rate Announcement Dec 10th, 2025

By Marci Deane • December 10, 2025
Bank of Canada maintains policy rate at 2.1/4%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario December 10, 2025 The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. Major economies around the world continue to show resilience to US trade protectionism, but uncertainty is still high. In the United States, economic growth is being supported by strong consumption and a surge in AI investment. The US government shutdown caused volatility in quarterly growth and delayed the release of some key economic data. Tariffs are causing some upward pressure on US inflation. In the euro area, economic growth has been stronger than expected, with the services sector showing particular resilience. In China, soft domestic demand, including more weakness in the housing market, is weighing on growth. Global financial conditions, oil prices, and the Canadian dollar are all roughly unchanged since the Bank’s October Monetary Policy Report (MPR). Canada’s economy grew by a surprisingly strong 2.6% in the third quarter, even as final domestic demand was flat. The increase in GDP largely reflected volatility in trade. The Bank expects final domestic demand will grow in the fourth quarter, but with an anticipated decline in net exports, GDP will likely be weak. Growth is forecast to pick up in 2026, although uncertainty remains high and large swings in trade may continue to cause quarterly volatility. Canada’s labour market is showing some signs of improvement. Employment has shown solid gains in the past three months and the unemployment rate declined to 6.5% in November. Nevertheless, job markets in trade-sensitive sectors remain weak and economy-wide hiring intentions continue to be subdued. CPI inflation slowed to 2.2% in October, as gasoline prices fell and food prices rose more slowly. CPI inflation has been close to the 2% target for more than a year, while measures of core inflation remain in the range of 2½% to 3%. The Bank assesses that underlying inflation is still around 2½%. In the near term, CPI inflation is likely to be higher due to the effects of last year’s GST/HST holiday on the prices of some goods and services. Looking through this choppiness, the Bank expects ongoing economic slack to roughly offset cost pressures associated with the reconfiguration of trade, keeping CPI inflation close to the 2% target. If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. Uncertainty remains elevated. If the outlook changes, we are prepared to respond. The Bank is focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. Information note The next scheduled date for announcing the overnight rate target is January 28, 2026. The Bank’s next MPR will be released at the same time.

Is Refinancing Your Mortgage a Good Way to Consolidate Debt?

By Marci Deane • December 3, 2025
If you're a homeowner juggling multiple debts, you're not alone. Credit cards, car loans, lines of credit—it can feel like you’re paying out in every direction with no end in sight. But what if there was a smarter way to handle it? Good news: there is. And it starts with your home. Use the Equity You’ve Built to Lighten the Load Every mortgage payment you make, every bit your home appreciates—you're building equity. And that equity can be a powerful financial tool. Instead of letting high-interest debts drain your income, you can leverage your home’s equity to combine and simplify what you owe into one manageable, lower-interest payment. What Does That Look Like? This strategy is called debt consolidation , and there are a few ways to do it: Refinance your existing mortgage Access a Home Equity Line of Credit (HELOC) Take out a second mortgage Each option has its own pros and cons, and the right one depends on your situation. That’s where I come in—we’ll look at the numbers together and choose the best path forward. What Can You Consolidate? You can roll most types of consumer debt into your mortgage, including: Credit cards Personal loans Payday loans Car loans Unsecured lines of credit Student loans These types of debts often come with sky-high interest rates. When you consolidate them into a mortgage—secured by your home—you can typically access much lower rates, freeing up cash flow and reducing financial stress. Why This Works Debt consolidation through your mortgage offers: Lower interest rates (often significantly lower than credit cards or payday loans) One simple monthly payment Potential for faster repayment Improved cash flow And if your mortgage allows prepayment privileges—like lump-sum payments or increased monthly payments—those features can help you pay everything off even faster. Smart Strategy, Not Just a Quick Fix This isn’t just about lowering your monthly bills (although that’s a major perk). It’s about restructuring your finances in a way that’s sustainable, efficient, and empowering. Instead of feeling like you're constantly catching up, you can create a plan to move forward with confidence—and even start saving again. Here’s What the Process Looks Like: Review your current debts and cash flow Assess how much equity you’ve built in your home Explore consolidation options that fit your goals Create a personalized plan to streamline your payments and reduce overall costs Ready to Regain Control? If your debts are holding you back and you're ready to use the equity you've worked hard to build, let's talk. There’s no pressure—just a practical conversation about your options and how to move toward a more flexible, debt-free future. Reach out today. I’m here to help you make the most of what you already have.