The First Home Savings Account (FHSA) helps first-time Canadian home buyers save up to $40,000 tax-free for a down payment. Contributions are tax-deductible, with an $8,000 annual limit and carry-forward allowed. Withdrawals for qualifying home purchases are tax-free, while non-qualifying withdrawals are taxed. Funds can be invested tax-free and transferred to RRSPs if unused. The FHSA complements the Home Buyers’ Plan but has lower contribution limits.
Analysts see December as a pause, not the end of easing, with more cuts possible if growth and jobs weaken.
Economic slack, labor softness, and trade tensions increase pressure for additional policy support in 2026.
Bank signals limits of monetary policy amid tariffs, but economists expect further easing if conditions deteriorate.
Fiscal stimulus may help, but slow impact could prompt renewed cuts if unemployment rises or demand cools.
Getting a mortgage as a self-employed individual is challenging due to income variability and stricter lender rules. To improve approval chances, increase your down payment to lower loan-to-value ratio, maintain a strong financial cushion, reduce existing debt to improve debt-to-income ratio, boost your credit score, and establish at least two years of positive business cash flow. Proper preparation can make you a more attractive borrower.
Timing the sale of your current home with the purchase of a new one can be challenging. Understanding local market conditions is crucial, as buying in a seller's or buyer's market affects pricing and timing. Deciding whether to buy or sell first depends on financial and logistical factors, with options like renting out your old home or using contingencies. Working with an experienced real estate agent familiar with simultaneous transactions can help navigate timing, strategy, and negotiations effectively.
Before applying for a mortgage, check your credit report for errors and ensure a good credit score to avoid denial or co-signing requirements. Lenders assess your income, expenses, debts, and credit to calculate your gross debt service (GDS) ratio, which should not exceed 39%, and total debt service (TDS) ratio, which should stay below 44%. Passing a stress test at a higher qualifying interest rate is mandatory for federally regulated lenders.
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BoC rate ↓ 25 bps, ninth cut since May 2024.
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Rate trims buy time, yet falling home prices and high debt still loom large.
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Unemployment climbs, GDP growth slows — Canada faces tough economic transition and rising risks.
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Household debt is sky-high, leaving little room for borrowing to boost the economy.
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Housing bubble bursts quietly while policy rate cuts can’t fix domestic financial instability.
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“BoC holds rates steady, signalling calm until 2027.”
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“Inflation stays on target, economy grows 2.6%, resilient despite U.S. tariffs.”
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“Home prices fell 3.2% in 2025, but modest 1.8% growth expected 2026.”
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“First-time buyers finally see improved affordability thanks to rate cuts and moderation.”
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“Stable rates, moderate price growth, targeted government support: 2026 feels buyer-friendly.”
Between removing your financing subject and finalizing a home purchase, avoid actions that could jeopardize your mortgage approval. Key cautions include promptly informing your mortgage professional of changes like closing dates, not financing new purchases without approval, making all payments on time, not co-signing loans, not changing jobs without consultation, and preserving your down payment funds. Always communicate changes to prevent last-minute issues.
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Real estate forecasts hint at a bumpy 18 months—prices and appraisals may swing unexpectedly.
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If your home’s appraisal drops below the purchase price, that shortfall’s on you, the buyer.
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Appraisals aren’t just numbers—they’re full risk reports lenders use to judge property value and condition.
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Each lender needs their own appraisal done within 60 days, with three recent comparable sales.
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Appraisal too low? Options exist, but your mortgage approval always sticks to the appraised value.
Getting a mortgage in Canada involves several steps, including organizing your credit, determining affordability, choosing the mortgage type, comparing lenders, and applying for pre-approval. Key factors include your credit score, which should ideally be 680 or higher, and your yearly income, which varies by location. The process can take from 24 hours to 10 business days, depending on document submission and lender review. Recent interest rate hikes have made homeownership more challenging, emphasizing the importance of understanding the mortgage landscape.