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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What Is a Cashback Mortgage and How Does It Work?

By Marci Deane • January 7, 2026
Cashback Mortgages: Are They Worth It? Here’s What You Need to Know If you’ve been exploring mortgage options and come across the term cashback mortgage , you might be wondering what exactly it means—and whether it’s a smart move. Let’s break it down in simple terms. What Is a Cashback Mortgage? A cashback mortgage is just like a regular mortgage—but with one extra feature: you receive a lump sum of cash when the mortgage closes . This cash is typically: A fixed amount , or A percentage of the total mortgage , usually between 1% and 7% , depending on your mortgage term and lender. The money is tax-free and paid directly to you on closing day. What Can You Use the Cashback For? There are no restrictions on how you use the funds. Here are some common uses: Covering closing costs Buying new furniture Renovations or home upgrades Paying off high-interest debt Boosting your cashflow during a tight transition Whether it’s to help you settle in or catch up financially, cashback can offer a helpful buffer— but it comes at a cost . The True Cost of a Cashback Mortgage Here’s the part many people overlook: cashback mortgages come with higher interest rates than standard mortgages. Why? Because the lender is essentially advancing you a small loan upfront—and they’re going to make that money back (and then some) through your mortgage payments. So while the upfront cash feels like a bonus, you’ll pay more in interest over time to have that convenience. Breaking Down the Numbers It’s hard to give a blanket answer about how much more you’ll pay since it depends on: Your interest rate The cashback amount The mortgage term Your payment schedule This is why it’s important to run the numbers with a mortgage professional who can help you compare this option with others based on your personal financial situation. Are You Eligible for a Cashback Mortgage? Not everyone qualifies. Cashback mortgages generally come with stricter requirements . Lenders often want to see: Excellent credit history Strong, stable income Low debt-to-income ratio If your mortgage file includes anything “outside the box”—like being self-employed or recently changing jobs—qualifying for a cashback mortgage might be tough. What If You Need to Break the Mortgage? This is one of the biggest risks with cashback mortgages. If your circumstances change and you need to break your mortgage early, you could be on the hook for: Paying back some or all of the cashback you received, and A prepayment penalty (typically the interest rate differential or 3 months’ interest—whichever is higher) That can be a very expensive combination. So if there’s even a chance you might need to sell, refinance, or move before your term is up, a cashback mortgage might not be the best fit. Should You Consider a Cashback Mortgage? Maybe—but only with eyes wide open. Cashback mortgages can be helpful in the right scenario, but they’re not free money. They’re a lending tool that benefits the lender , and the key is knowing exactly what you’re agreeing to. Final Thoughts: Talk to an Expert First Choosing the right mortgage isn’t just about the lowest rate or the biggest perk—it’s about making a choice that fits your whole financial picture. If you’re considering a cashback mortgage, or just want to explore all your options, let’s talk. As an independent mortgage professional , I can help you weigh the pros and cons of various products, so you can make a confident, informed decision. Have questions? I’d be happy to help—reach out anytime.

Getting a Mortgage Shouldn’t Be Stressful—We Can Help

By Marci Deane • December 31, 2025
Buying a Home? Follow These 6 Key Steps for a Smooth Experience Buying a home is likely one of the biggest financial decisions you’ll ever make. It’s exciting—but it can also be overwhelming, especially when it comes to understanding how mortgage financing works. To help make the process smoother (and far less stressful), here are six essential steps every homebuyer should follow: 1. Start With a Mortgage Professional—Not MLS It’s tempting to start your home search by scrolling through listings and booking showings—but the real first step should be speaking with an independent mortgage professional . Unlike a bank that offers only one set of products, an independent mortgage expert has access to multiple lenders and options . That means better advice, better rates, and a better chance of finding a mortgage that truly fits your needs. 2. Build a Personalized Mortgage Plan Unless you’re buying your home with cash, you’ll need a solid financing strategy. That means: Reviewing your credit score Running affordability calculations Exploring different mortgage types, terms, and features Understanding down payments and closing costs The sooner you start planning, the more confident you’ll feel. Don’t wait until you’ve found the “perfect” property— get ahead of the process now . 3. Figure Out What You Can Actually Afford What a lender says you can borrow doesn’t always match what you can comfortably pay each month. Take a close look at your budget, lifestyle, and spending habits. Think about how your mortgage payments, property taxes, utilities, and other costs will fit into your everyday cash flow. Avoid the stress of being house-poor by knowing your real-life affordability , not just your paper pre-approval. 4. Get Pre-Approved the Right Way A true mortgage pre-approval isn’t just entering numbers into an online calculator. It means: Completing a mortgage application Submitting all your required documentation Having a mortgage professional fully assess your file When you’re officially pre-approved, you’ll shop for homes with confidence , knowing what you qualify for and that you’re financially ready. 5. Submit Your Documents Promptly and Stay Flexible Once you find a property and your offer is accepted, time is of the essence. That’s when all the upfront work you’ve done really pays off. Be ready to: Provide additional documentation if requested Respond to your mortgage professional quickly Stay flexible and proactive throughout the approval process Your lender needs to verify everything before finalizing the loan, so staying organized is key. 6. Don’t Make Big Financial Changes Before Closing Once you’ve secured financing and waived your conditions, freeze your finances until after you get the keys. Seriously—don’t: Change jobs Apply for new credit Take out a loan Make a large withdrawal Even small changes can throw off your approval. Keep everything status quo until you officially take possession. Recap: 6 Steps to a Smooth Home Purchase Connect with an independent mortgage professional Create a mortgage plan early Know what you can afford (not just what you qualify for) Get fully pre-approved Stay on top of documentation Avoid major financial changes before possession Ready to Buy with Confidence? If you’re thinking about buying a home—or just want to know what’s possible—let’s talk. I’ll help you map out a personalized plan that makes your homebuying journey feel simple, strategic, and stress-free. Reach out anytime. I’d love to help you get started.

Get Unbiased Advice: Work with an Independent Mortgage Pro

By Marci Deane • December 24, 2025
Why Work With an Independent Mortgage Professional? If you’re in the market for a mortgage, here’s the most important thing to know: Working with an independent mortgage professional can save you money and provide better options than dealing directly with a single bank. If that’s all you read—great! But if you’d like to understand why that statement is true, keep reading. The Best Mortgage Isn’t Just About the Lowest Rate It’s easy to fall for slick marketing that promotes ultra-low mortgage rates. But the lowest rate doesn’t always mean the lowest cost . The best mortgage is the one that costs you the least amount of money over time —not just the one with the flashiest headline rate. Things like: Prepayment penalties Portability Flexibility to refinance Amortization structure Fixed vs. variable terms …can all affect the true cost of your mortgage. An independent mortgage professional looks beyond the rate. They’ll help you find a product that fits your unique financial situation , long-term goals, and lifestyle—so you’re not hit with expensive surprises down the road. Save Time (and Your Sanity) Applying for a mortgage can be complicated. Every lender has different rules, documents, and policies—and trying to navigate them all on your own can be time-consuming and frustrating. When you work with an independent mortgage professional: You fill out one application They shop that application across multiple lenders You get expert advice tailored to your needs This means less paperwork , less stress , and more confidence in your options. Get Unbiased Advice That Puts You First Bank specialists work for the bank. Their job is to sell you that bank’s mortgage products—whether or not it’s the best deal for you. Independent mortgage professionals work for you. They’re provincially licensed, and their job is to help you: Compare multiple lenders Understand the fine print Make informed, long-term financial decisions And the best part? Their services are typically free to you . Mortgage professionals are paid a standardized fee by the lender when a mortgage is placed—so you get expert guidance without any out-of-pocket cost. Access More Mortgage Options When you go to your bank, you’re limited to that bank’s mortgage products. When you go to an independent mortgage professional, you get access to: Major banks Credit unions Monoline lenders (who only offer mortgages) Alternative and private lenders (if needed) That’s far more choice , and a much better chance of finding a mortgage that truly fits your needs and goals. The Bottom Line If you want to: Save money over the life of your mortgage Save time by avoiding unnecessary back-and-forth Access more lenders and products Get honest, client-first advice …then working with an independent mortgage professional is one of the smartest decisions you can make. Let’s Make a Plan That Works for You If you're ready to talk about mortgage financing—or just want to explore your options—I'm here to help. Let's connect and put together a strategy that makes sense for your goals and your future. Reach out anytime. I’d be happy to help.