Mortgage penalties for breaking fixed-rate deals have nearly doubled in 2025, averaging $6,732. Reasons to rework mortgages include chasing lower rates, moving, renovating, or consolidating debt. Penalties vary by lender; some offer fairer terms or options like variable rates, combined loan plans, or prepayment privileges to reduce costs. Timing and lender choice are key to minimizing penalties. Consulting a mortgage broker can help navigate options.
First-time buyers in Canada need clear mortgage guidance amid rising prices and changing interest rates.
Government programs like the First-Time Home Buyer Incentive and HBP can reduce upfront and monthly costs.
Personalized mortgage advice helps buyers understand true affordability and avoid costly mistakes.
Comparing lenders beyond major banks can unlock better rates, flexibility, and lower penalties.
A smart mortgage strategy builds confidence and prevents financial surprises when buying your first home.
Kingston Gardens in Surrey will add 85 new non-market rental units for low-to-moderate income families, replacing 24 townhouses with a four-storey building. The $44.7 million project, funded by provincial, federal, and Metro Vancouver Housing contributions, includes amenities like a play court, community gardens, kitchen, shared laundry, and cooling units. Applications are now open.
Real estate investing offers various options from low-maintenance REITs and crowdfunding platforms to renting out rooms or entire properties, and house flipping. REITs provide dividend income with less hassle, while crowdfunding offers higher returns but more risk. Renting a room or property generates rental income but requires management. Flipping houses can yield profits but involves renovation risks. Choose based on your time, capital, and willingness to manage properties.
Economists now expect the Bank of Canada to hold rates steady through most or all of 2026 after 100 basis points of cuts in 2025.
The policy rate sits at 2.25%, with the BoC signalling it is “about the right level” amid resilient growth and tariff uncertainty.
Several banks see the next move more likely being a hike than a cut, possibly late 2026 or in 2027 if inflation reaccelerates.
While no change is the base case, risks remain two-sided, with cuts requiring economic deterioration and hikes tied to firmer inflation.
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Variable mortgage rates dropped from 7% to under 4% since mid‑2024.
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Bank of Canada paused cuts; inflation risks still keep rates elevated.
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Fixed rates tied to bonds, now around 3% after 2025 fluctuations.
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Borrowers bet on low variable rates, shifting away from long fixed terms.
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2026 could see variable rates rise ~50 basis points if hikes return.
Owning a home in Canada requires saving for a down payment, which ranges from 5% to 20% of the purchase price, depending on the home's value. Mortgages are loans from lenders to finance home purchases, with terms typically between three to five years and amortization periods up to 30 years. First-time buyers can utilize the First Home Savings Accounts (FHSAs) and the Home Buyers' Plan to save for down payments. Consistent saving and strategic budgeting are essential for achieving homeownership.
Dec 10, 2025 rate: 2.25%
Rate held steady since Oct 29, 2025
Several cuts in 2025, from 3.25%
Rate changes affect mortgage payments
Long-term financial plans also impacted
Self-employed homebuyers can secure loans but must provide more documentation, such as two years of tax returns, profit and loss statements, and IRS Form 4506-T. Maintaining a good credit score and separating business from personal finances is crucial. Business write-offs that reduce reported income may affect mortgage qualification. With proper planning and organization, self-employed individuals can successfully achieve homeownership.
Homebuyer incentives such as seller credits, mortgage points, interest rate buydowns, builder upgrades, and lender credits can reduce upfront costs or monthly payments, making homeownership more affordable. Seller credits help cover closing costs, while buydowns lower interest rates temporarily or permanently. New construction may offer additional incentives. Understanding and negotiating these options can maximize savings and ease the homebuying process.