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CategoryRate forecast

First Bank of Canada raises rates; newspaper and counter sign announce a 0.25% increase.
Posted Bank News

First Bank of Canada rate hike in 3 years

The headlines are to get your attention. It’s incredible how many calls and emails our office received after the Bank of Canada governor, Tiff Macklem, raised the Bank Rate by 0.25% to 4.70% on October 28.  This is the 7th of 8 regularly scheduled rate announcement dates.  The next one is December 9.

The mainstream media is missing a few things or at least I am not seeing a lot of coverage about these things..

  • This is the first rate hike since July 2023.
  • This rate hike directly affects Variable rate mortgages.
  • Most variable rate borrowers have a rate of Prime less X.  This can vary but it’s anywhere from Prime less 0.25% to Prime less 1.10%.
  • Prime rate does not directly affect Fixed mortgage rates.
  • Historically, fixed rates already go up or down before the Prime rate.
Continue reading “First Bank of Canada rate hike in 3 years”
A vintage balance scale with a model house on one side and stacks of coins on the other
Posted Bank News

Real Estate, Interest Rates, and Market Reality: Why It’s Time to Take a Deep Breath

Lately, whenever I talk to clients, friends, or family across Ontario, I hear the same thing: people are anxious. They’re worried about where interest rates are going, what their homes are worth, and how they’re going to handle their upcoming mortgage renewals.

There is a lot of noise out there right now. Headlines are designed to panic you, and constant political changes don’t help. My goal here is simple: to give you the straight facts, share what I’m seeing after over 35 years in this industry, and help restore a little calm.

Rule #1: The 7-Year Real Estate Rule

If you take only one thing away from this article, let it be this: A home should always be purchased with the plan of holding it for 7 years or more.

Continue reading “Real Estate, Interest Rates, and Market Reality: Why It’s Time to Take a Deep Breath”
Cartoon house character juggling stacks of cash and buildings with for sale signs
Posted Bank News

Part 2: Beating the Math: How Buyers Can Win in a Broken Mortgage Market

(click here to read Part 1: Breathing the Math: Why Politicians are failing Canadians and what you can do.)

If you are a first-time buyer trying to get into today’s market, you cannot wait for the government to save you. Take back control of your own life.  There are old-school strategies and a few specific tools you can leverage to force your way through the door.

1. “House Hacking” (Rent a Portion Out)

This isn’t a new concept. Exactly 31 years ago, I bought my first house, and the only way I could make the math work was by renting part of it out. Having a tenant pay down my mortgage is exactly how I built my equity. Look for properties with secondary suites or basement apartments. Use that projected rental income to help you qualify for the mortgage and cover your carrying costs.

2. Maximize the RRSP Home Buyers’ Plan (HBP)

The government recently enhanced this, and it is a game-changer.

  • The Limits: You can now withdraw up to $60,000 per person (or $120,000 per couple) from your RRSP entirely tax-free.
  • The Strategy: This cash doesn’t just have to be for the down payment. It can be used to cover massive closing costs, land transfer taxes, and legal fees. You have up to 15 years to pay it back into your RRSP, making it a highly effective self-loan.
Continue reading “Part 2: Beating the Math: How Buyers Can Win in a Broken Mortgage Market”
Posted Bank News

Ask the mortgage expert: How to buy a home in 2026, between budgets, builders, and opportunities

Every year, homebuyers across Canada hold out for the silver bullet—a policy change that will suddenly make the path to homeownership clearer.

From tax reforms to supply-side stimulus, the landscape is changing. The question is: Are these changes enough to bridge the gap between supply and demand, and how can you leverage them to your advantage?

While there is rarely a single “fix” for a market as complex as ours, the most recent budget cycles and policy updates have introduced significant shifts that every homebuyer needs to understand. Continue Reading ….

I hope you will enjoy this article and if you have any questions or would like to discuss I am always available.

Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.

Steve Garganis: 416-224-0114; steve@canadamortgagenews.

Posted Bank News

Canada Housing disaster 2025: The Great Canadian Shell Game

If you’ve been waiting for a miracle in the Canadian housing market, I hope you like waiting. Despite the “bold” headlines coming out of Ottawa and the provinces, the average Canadian is still getting squeezed until the pips squeak.

I thought it was time to do an annual review on how our governments performed in 2025 regarding the housing shortage crisis. The quick assessment? It is a failure of math, policy, and will.

We’ve had a new budget, a new “housing czar” approach from the Federal Government, and a lot of expensive-looking agencies. But let’s look at the numbers—because the numbers don’t lie, even if the politicians do.

Continue reading “Canada Housing disaster 2025: The Great Canadian Shell Game”