Author: Paul Mann

As someone who’s worked with clients through every market shift since 2010, I’ve seen firsthand how lower interest rates can quickly drive up housing demand in Canada. According to central bank research, resales start climbing almost immediately after rate cuts, with the full effects showing up 18 to 24 months later. Meanwhile, it typically takes about two years before we see a meaningful uptick in new housing starts—especially with the added planning and permitting needed for larger projects. While strong job markets and easier lending conditions encourage buyers to act faster, builders respond more slowly as improved prices and financing gradually make projects more viable. Ultimately, these findings highlight something I discuss often with clients: although rate cuts can eventually help add supply, they aren’t a quick fix for affordability. The supply always lags behind demand, which means relying solely on lower borrowing costs won’t solve the underlying pressures on housing. Understanding this cycle is essential when choosing the right mortgage strategy for your needs.

Many are asking: could we see Canadian interest rates rise again by 2027? As it stands, the Bank of Canada rate is holding at 2.25%, but several leading bank forecasts are already pointing to gradual increases that year. When the economy shows signs of robust growth, policymakers may have more flexibility to normalize rates—especially if inflation lingers. For borrowers, this could mean higher costs on mortgages and loans, while savers and fixed-income investors might see improved returns. As someone who’s spent over a decade finding the right mortgage solutions for my clients in BC and Alberta—whether it’s a first mortgage, refinance, or private lending—I’m always watching these trends closely. If rates do start ticking upward, it’s essential to plan ahead and consider how shifting borrowing costs could affect your personal or business strategy. It’s all about finding the right fit for your unique financial circumstances, no matter how the rate environment evolves.

Many Canadians renewing their mortgages since early Q1 2025 are feeling the pressure of higher borrowing costs. In fact, 82% of renewers saw their rates increase, while just 13% managed to secure a lower rate. For nearly half of these homeowners, mortgage payments now consume at least half of their monthly household budget. Some are allocating 50% to 70% of their budget to their mortgage, and 5% are spending even more than that. When it comes to fixed-rate renewals, the 5-year term remains the top choice at 40%, with 3-year terms close behind at 35%. Younger homeowners are especially impacted—among those aged 18 to 34 whose rates changed, 90% renewed at a higher rate. As someone who’s helped clients navigate renewals, refinances, and even complex lending scenarios across BC and Alberta, I see firsthand how the right strategy can make a difference. Whether you’re considering your options with a first mortgage, exploring private lending, or just want clarity in a shifting landscape, remember: securing a mortgage solution tailored to your circumstances can help ease the strain.

Labour Day in Canada marks a well-earned break celebrating workers and the unofficial end of summer, when everyone suddenly remembers all the things they meant to do in August.
It’s the last big excuse for barbecues, lake trips, and squeezing in one more summer adventure before routines and school schedules take over again.
Stores and sidewalks feel a little calmer, while patios and parks get their final big rush of summer energy and “just one more weekend” vibes.
Happy Labour Day! Wishing you a relaxed, fun-filled long weekend with good food, no alarms, and maximum enjoyment before fall shows up uninvited.

Canada's final pandemic-era low-rate borrowers reached renewal, representing ~12% of outstanding mortgages and closing out the last major wave from 2021's ultra-low borrowing period.
A recent survey found 38% expected monthly payments to rise, 31% expected little change, and 17% expected a decrease at renewal nationally.
Most households were managing the transition, and widespread defaults had not materialized, even as one in three borrowers felt more anxious than before.
Among borrowers expecting higher payments, 76% said household finances would feel pressure, yet 71% said they would not change living arrangements at renewal.
At renewal, 43% planned to choose a fixed rate, 39% planned to assess all options, while 49% intended to stay with current lenders.