When shopping for a mortgage, most homebuyers naturally gravitate toward the lowest interest rate they can find. It seems like a no-brainer—after all, a lower rate means lower monthly payments, right? Not always. While a low rate is certainly attractive, it is not the only factor that determines whether a mortgage is the best choice for you. Let’s dive deeper into why the lowest rate might not always be the best rate.

Understanding Mortgage Rates vs. Mortgage Terms

First, it’s important to understand that a mortgage has two main components: the interest rate and the terms. The interest rate is the percentage you pay on the borrowed amount, while the terms define how long that rate is locked in, as well as other conditions like payment flexibility and penalties.

Lenders often offer very low “teaser” rates that may come with strict conditions—like high penalties for breaking the mortgage early, limited prepayment options, or hidden fees. In some cases, choosing a slightly higher rate with better terms can save you more money in the long run.

Factors Beyond the Rate

Here are some key factors to consider beyond just the interest rate:

1. Prepayment Privileges: Can you make extra payments without penalty? A mortgage with generous prepayment options can help you pay down your loan faster and save on interest.
2. Penalties for Breaking the Mortgage: If you sell your home or refinance before the term ends, will you face steep penalties? This is a critical consideration for those who may move or need to change their mortgage before it matures.
3. Portability: Can you take your mortgage with you if you buy a new home? A portable mortgage can save you from costly penalties when moving.
4. Fixed vs. Variable Rates: A super-low variable rate may seem great initially, but it can increase over time. Make sure you understand the risk of rate fluctuations.
5. Hidden Fees and Charges: Some low-rate mortgages may come with administrative fees, appraisal fees, or even a higher cost for lender protection insurance.

The Importance of Total Cost

Rather than focusing solely on the lowest rate, consider the total cost of the mortgage over the full term. Calculate how much you will pay in interest, fees, and penalties to get a clearer picture of which mortgage is the most affordable.

Work with a Mortgage Professional

Navigating the world of mortgages can be complex, but you don’t have to do it alone. A qualified mortgage professional can help you understand your options, explain the fine print, and guide you toward the best mortgage for your financial situation.

Final Thoughts

While the lowest mortgage rate may catch your attention, it’s not always the best choice. The best mortgage is the one that aligns with your financial goals, offers flexibility, and minimizes your overall cost. Don’t be lured by the lowest rate without understanding what you may be giving up in exchange.

Have questions about finding the right mortgage? Let’s chat. I’m here to help you make a confident, informed decision.

With a Liberal government in charge, many Canadian homeowners and prospective buyers are wondering:
“Will this impact my mortgage rate?”

Great question — and the answer is nuanced: maybe, but not overnight. Let’s unpack why.

Government Spending & Bonds: What’s the Connection?
Liberal governments have historically favoured increased spending on infrastructure, healthcare, social programs, housing initiatives, and green energy. While these initiatives can stimulate economic growth and support long-term goals like climate transition and housing affordability, they also require substantial capital — which is often raised through government bond issuance.

When the government issues more bonds:

Bond supply increases, and to attract investors, yields (returns) on those bonds may rise.

Since fixed mortgage rates in Canada are closely tied to bond yields, especially 5-year Government of Canada bonds, this can translate into higher fixed mortgage rates.

So, if the Liberals continue with high-spending policies, especially without matching revenue increases, we could see upward pressure on bond yields over time, nudging fixed mortgage rates higher.

The Bank of Canada’s Role: Keeping the Economy Comfortable
Think of the Bank of Canada as the economy’s thermostat. Its main tool? The overnight lending rate, which influences variable-rate mortgages, lines of credit, and overall borrowing costs.

If government spending and consumer demand heat up the economy — particularly if inflation starts climbing — the Bank of Canada could raise interest rates to cool things down.

But here’s the key:

The Bank of Canada doesn’t set rates based on who’s in power — it responds to economic conditions, not political ones.

This means even if a Liberal government increases spending, the Bank will only act if inflation, employment, or growth data signal a need for rate adjustments.

Current context (Spring 2025):

Inflation has been moderating but remains above the Bank’s 2% target.

GDP growth is positive but slowing.

The housing market in many regions is rebounding after a quieter 2023–2024 period.

Given these factors, the Bank of Canada is expected to hold or cautiously adjust rates based on upcoming data — not based on political shifts.

What If the Economy Slows Down?
On the flip side, if international uncertainty (such as trade tariffs or global conflicts) or domestic issues (like a housing correction or rising unemployment) drag down growth, we could actually see:

Lower bond yields, leading to lower fixed mortgage rates.

Potential rate cuts from the Bank of Canada to stimulate the economy — benefiting variable-rate mortgage holders.

Bottom Line
If you’re a homeowner or potential buyer, here’s what to keep in mind:

Fixed Rates are influenced by bond yields, which may rise slightly with increased government borrowing.

Variable Rates follow the Bank of Canada’s overnight rate, which adjusts based on inflation and economic trends — not political parties.

The Bank of Canada will act independently based on how the economy unfolds.

In short, a Liberal government could result in slightly higher borrowing costs in the medium term, but nothing drastic happens overnight — and rates could also go lower if economic headwinds grow stronger.

Want to Talk Strategy?
Whether you’re renewing your mortgage, considering a refinance, or planning a new purchase, having a smart mortgage strategy is more important than ever in a shifting economic landscape.

I’m Brad Plummer, a Mortgage Broker with Dominion Lending Centres Neighbourhood Mortgage Source in Carleton Place, ON. My team and I help clients make confident mortgage decisions, no matter the market or political climate.

Let’s chat about how to optimize your mortgage in today’s environment — and prepare for whatever comes next.
613.714.9499
team@bradplummer.ca

As homeowners in Ontario approach retirement, financial security becomes a top priority. Many individuals find themselves house-rich but cash-poor, meaning their wealth is tied up in their home’s equity rather than accessible funds for day-to-day expenses. A reverse mortgage is a valuable financial tool that allows homeowners aged 55 and older to access their home equity without the burden of monthly mortgage payments. At Dominion Lending Centres, we specialize in helping Canadians explore the benefits of reverse mortgages to achieve financial freedom and security in their golden years.

What is a Reverse Mortgage?

A reverse mortgage is a loan that enables homeowners to convert a portion of their home equity into tax-free cash. Unlike a traditional mortgage, where borrowers make monthly payments, a reverse mortgage allows homeowners to receive funds without the obligation to make monthly repayments. The loan is repaid when the homeowner sells the home, moves out permanently, or passes away.

Benefits of a Reverse Mortgage

1. No Monthly Mortgage Payments

One of the biggest advantages of a reverse mortgage is that there are no required monthly payments. This can ease financial stress and allow retirees to enjoy their lifestyle without worrying about making regular payments.

2. Tax-Free Cash Flow

The money received from a reverse mortgage is tax-free and can be used for any purpose, including home renovations, medical expenses, travel, or supplementing retirement income.

3. Retain Home Ownership

Homeowners maintain full ownership of their property and can continue living in their home as long as they wish, provided they meet the loan conditions, such as keeping the property well-maintained and paying property taxes and insurance.

4. Flexible Payment Options

Borrowers can choose to receive their funds as a lump sum, regular payments, or a combination of both, depending on their financial needs.

Who Qualifies for a Reverse Mortgage?

To be eligible for a reverse mortgage in Ontario, homeowners must:

• Be at least 55 years old
• Own a home in Canada (Ontario residents are eligible)
• Use the property as their primary residence
• Have sufficient equity in their home

The amount a homeowner can borrow depends on their age, the home’s value, and its location. Generally, the older the borrower, the higher the loan amount they can access.

Is a Reverse Mortgage Right for You?

A reverse mortgage is an excellent option for many homeowners, but it may not be suitable for everyone. It’s important to consider factors such as long-term financial goals, estate planning, and other available financing options. At Dominion Lending Centres, our mortgage professionals can help assess your financial situation and determine whether a reverse mortgage is the right solution for you.

Get Started Today

If you’re considering a reverse mortgage in Ontario, let Dominion Lending Centres guide you through the process. We are dedicated to helping homeowners unlock the value of their homes to enjoy a comfortable and secure retirement. Contact us today to learn more and explore your options!

The recent imposition of U.S. tariffs on Canadian goods has raised concerns about their potential impact on Canada’s economy, particularly the housing market and mortgage rates. Understanding these effects is crucial for homeowners, prospective buyers, and investors.

Overview of the New U.S. Tariffs

The U.S. administration has implemented a 25% tariff on Canadian imports and a 10% levy on energy exports. These measures aim to protect domestic industries but have significant implications for Canada’s export-driven economy.

Potential Economic Impact on Canada

Canada’s economy is heavily reliant on exports to the U.S., making it vulnerable to such trade policies. The Bank of Canada estimates that these tariffs could reduce annual GDP growth by approximately 2.5 percentage points in the first year, potentially pushing the economy into a recession.

A contracting economy often leads to higher unemployment rates and reduced consumer spending, factors that can adversely affect the housing market.

Implications for the Housing Market

A weakened economy can dampen consumer confidence, leading to decreased demand for housing. This reduced demand may result in slower home sales and a potential decline in property values. Prospective buyers might adopt a wait-and-see approach, anticipating more favorable market conditions before making a purchase. Additionally, current homeowners could see their property values stagnate or decrease, impacting their home equity and financial planning.

Influence on Mortgage Rates

The tariffs’ impact on mortgage rates is multifaceted:

1. Inflationary Pressures: Tariffs often lead to increased prices for imported goods, contributing to higher inflation. In response, central banks may raise interest rates to curb inflation, leading to higher mortgage rates.

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2. Economic Slowdown: Conversely, if the economy slows down due to reduced exports and business investments, the Bank of Canada might lower interest rates to stimulate growth. Such a move could result in lower mortgage rates.

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3. Currency Depreciation: The Canadian dollar could weaken against the U.S. dollar amid economic uncertainty, making imports more expensive and adding to inflationary pressures. This scenario might prompt the central bank to adjust interest rates accordingly, influencing mortgage rates.

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Regional Variations

The impact of tariffs may vary across Canada’s regions. Areas heavily dependent on industries affected by U.S. tariffs, such as manufacturing and energy sectors, could experience more pronounced economic challenges. This regional economic strain might lead to localized declines in housing demand and property values, influencing regional mortgage markets.

Consumer Behavior and Sentiment

Trade tensions can erode consumer confidence, leading individuals to postpone significant financial decisions like purchasing a home. This cautious approach can slow down the housing market, affecting both sales volumes and prices. Additionally, existing homeowners might delay refinancing or renovations due to economic uncertainty, impacting mortgage activity.

Long-Term Considerations

Prolonged trade disputes can have lasting effects on the economy and housing market. Sustained tariffs may lead to structural changes in industries, employment patterns, and consumer behavior. These shifts could redefine housing demand, affordability, and mortgage product offerings in the long run.

Conclusion

The new U.S. tariffs on Canadian goods present a complex challenge with potential ripple effects on the housing market and mortgage rates. While higher inflation could drive up mortgage rates, an economic slowdown might lead to rate cuts. Homebuyers, homeowners, and investors should stay informed about these developments and consider consulting financial advisors to navigate the evolving landscape effectively.

A rental suite—also known as a secondary unit, accessory apartment, or in-law suite—is a self-contained living space within a home that is rented out to tenants. In Ontario, rental suites are becoming increasingly popular as homeowners look for ways to generate extra income or accommodate extended family members. However, not all rental suites are considered legal or compliant with municipal and provincial regulations.

If you’re thinking about adding a rental suite to your home, it’s essential to understand what qualifies as a legal unit, what rules apply, and how it may impact your mortgage options.

What Defines a Rental Suite in Ontario?

A rental suite is typically a separate living space within a primary residence that includes:
✅ A private entrance (separate from the main dwelling)
✅ A kitchen or kitchenette with cooking facilities
✅ A bathroom with a toilet, sink, and shower/bathtub
✅ A sleeping area (which may be a bedroom or open-concept space)

These suites are commonly found in basements, but they can also be built as coach houses, laneway homes, or converted spaces within a house.

Legal vs. Illegal Rental Suites

Not all rental suites in Ontario are considered legal. Municipalities have zoning bylaws and building codes that determine whether a secondary unit meets the requirements for rental. Here are the key factors that define a legal rental suite:

1. Zoning and Permits

Each municipality in Ontario has its own zoning rules for rental suites. Some areas allow secondary suites as of right, meaning they don’t require special approval, while others may have restrictions. Before creating a rental suite, homeowners must check with their local zoning department to ensure their property is eligible.

2. Building Code Compliance

Rental suites must meet the Ontario Building Code (OBC), which sets safety and structural requirements. This includes:
✔️ Minimum ceiling height (usually 6 feet 5 inches or higher)
✔️ Proper ventilation and insulation
✔️ Safe electrical and plumbing systems

If a suite was built without a permit or fails to meet these requirements, it is considered illegal and could result in fines or eviction of tenants.

3. Fire and Safety Regulations

Fire safety is a critical factor for legal rental suites. Units must comply with the Ontario Fire Code, which includes:
🔥 Fire-rated walls and doors to prevent the spread of fire
🔥 Smoke and carbon monoxide detectors in key areas
🔥 Proper exits (egress windows or secondary escape routes)

A suite that does not meet fire safety regulations is not considered legal and could be shut down.

Benefits of a Legal Rental Suite

Having a legal rental suite comes with several advantages, including:
✔️ Extra Income – Helps cover mortgage payments and household expenses
✔️ Increased Property Value – Homes with legal rental units are attractive to buyers
✔️ Easier Financing – Some lenders allow rental income to count toward mortgage qualification

Final Thoughts

If you’re considering adding a rental suite in Ontario, ensure it meets zoning, building, and fire code regulations to avoid potential issues. A legal suite provides financial benefits while offering peace of mind for both homeowners and tenants.

Thinking about buying a home with a rental suite or converting part of your house? Let’s discuss your mortgage options today! 🚪💰🏡

Losing your job can be a stressful and overwhelming experience, especially when it comes to managing your financial obligations like your mortgage. Your home is likely one of your most significant investments, and ensuring you stay on top of your mortgage payments during uncertain times is crucial. Here’s how job loss can affect your mortgage and some proactive steps you can take to protect your financial well-being.

1. Impact on Mortgage Payments

The most immediate concern after a job loss is the ability to continue making your mortgage payments. Without a steady income, it can become challenging to cover your monthly expenses, which may put you at risk of falling behind on payments. Missed or late payments can negatively impact your credit score, making it more difficult to secure future loans or refinancing options.

If you’re unable to make your mortgage payments, lenders may consider foreclosure as a last resort, which could result in the loss of your home. However, most lenders are willing to work with borrowers facing financial hardship to find a solution that prevents foreclosure.

2. Options Available During Financial Hardship

If you find yourself struggling to make mortgage payments due to job loss, consider the following options:

• Contact Your Lender Early: Communication is key. Reach out to your lender as soon as possible to explain your situation. Many lenders offer hardship programs, such as temporary payment deferrals or loan modifications, to help borrowers stay afloat.
• Mortgage Payment Deferrals: Some lenders may offer short-term relief by allowing you to defer your mortgage payments for a specified period. This can provide you with time to secure new employment or stabilize your finances.
• Refinancing Your Mortgage: If you have equity in your home, refinancing to a lower interest rate or extending your amortization period could help lower your monthly payments and provide financial breathing room.
• Utilizing Your Emergency Fund: If you have an emergency savings fund, now might be the right time to use it to keep your mortgage payments current while searching for a new job.

3. Government and Community Support

Depending on your location, there may be government programs or community resources available to assist homeowners facing financial difficulties. Programs such as Employment Insurance (EI) in Canada can provide temporary income support while you look for new job opportunities. Additionally, some provinces offer homeowner assistance programs to help prevent foreclosure.

4. Exploring Alternative Income Sources

In today’s digital age, there are numerous ways to generate temporary income while searching for full-time employment. Freelancing, part-time work, or leveraging skills in the gig economy can help bridge the financial gap and ensure mortgage payments are met.

Conclusion

Job loss is a challenging experience, but taking proactive steps can help you navigate this difficult time while protecting your home. Whether it’s reaching out to your lender, exploring refinancing options, or seeking temporary financial support, being informed and prepared can make all the difference. If you’re facing financial uncertainty, Dominion Lending Centres is here to help you explore your options and find the best solutions for your mortgage needs.

When you’re looking to secure a mortgage, whether it’s for purchasing a new home or refinancing an existing one, your credit score plays a key role in determining your eligibility. In Canada, lenders consider credit scores a reflection of your financial reliability, so it’s essential to understand how this impacts your mortgage options.

Mortgage for Home Purchase:

For most mortgage providers, a minimum credit score of 600 to 650 is required to qualify for a conventional mortgage. However, this doesn’t guarantee approval—it simply opens the door to consideration. A credit score in the range of 680 or higher is often preferred by lenders, as it indicates a lower risk, potentially unlocking better interest rates and terms.

If your score is below 600, don’t worry. There are alternative lending options, including private lenders or B-lenders, who might be more flexible, though typically at the cost of higher interest rates. Working with a professional mortgage broker, like those at Dominion Lending Centres, can help guide you to the right lender for your specific situation.

Mortgage Refinance:

Refinancing is a popular way to tap into home equity, consolidate debt, or secure better mortgage terms. For refinancing, credit score requirements are generally similar to those for a purchase mortgage. A score of 600 to 680 is typical, with higher scores giving you access to lower interest rates.

One advantage of refinancing is that if your credit score has improved since you originally purchased your home, you could qualify for a more favorable mortgage. If your score is still low, alternative lenders may still offer refinancing options, but rates will be higher.

Whether you’re purchasing a home or refinancing, working with Dominion Lending Centres in Ontario can help you navigate the credit score requirements and secure the best possible mortgage solution for your needs.

As of December 15, 2024, the Canadian government has introduced significant updates to insured mortgage rules, opening new doors for homebuyers across the country. These changes aim to improve affordability and accessibility, especially for first-time buyers and those in high-priced housing markets. Here’s what you need to know:

30-Year Amortizations for First-Time Buyers
First-time homebuyers can now access insured mortgages with amortization periods of up to 30 years. This extension reduces monthly mortgage payments, making homeownership more attainable for Canadians. Additionally, buyers purchasing newly constructed homes are also eligible for this extended amortization period.

Higher Property Value Cap
The maximum property value eligible for an insured mortgage has increased from $1 million to $1.5 million. This adjustment provides much-needed relief in cities where property prices have soared, ensuring more buyers qualify for insured mortgages with lower down payments.

Updated Down Payment Structure
For properties valued up to $1.5 million, the minimum down payment remains:

• 5% on the first $500,000
• 10% on the portion of the purchase price between $500,000 and $1.5 million

These rates help buyers secure homes with manageable upfront costs.

Insurance Premium Adjustments
While the longer amortization offers financial flexibility, it’s worth noting that mortgage insurance premiums for 30-year terms may be slightly higher, increasing by approximately 0.20%. Buyers should consult with mortgage professionals to assess their options.

These changes reflect a commitment to supporting Canadians on their homeownership journey. Whether you’re a first-time buyer or looking to move into a newly constructed home, these updates could make your dream home a reality.

At Dominion Lending Centres, we’re here to guide you through these changes and find the mortgage solution that fits your needs. Contact us today to explore your options!

When you’re looking to secure a mortgage, whether it’s for purchasing a new home or refinancing an existing one, your credit score plays a key role in determining your eligibility. In Canada, lenders consider credit scores a reflection of your financial reliability, so it’s essential to understand how this impacts your mortgage options.

Mortgage for Home Purchase:

For most mortgage providers, a minimum credit score of 600 to 650 is required to qualify for a conventional mortgage. However, this doesn’t guarantee approval—it simply opens the door to consideration. A credit score in the range of 680 or higher is often preferred by lenders, as it indicates a lower risk, potentially unlocking better interest rates and terms.

If your score is below 600, don’t worry. There are alternative lending options, including private lenders or B-lenders, who might be more flexible, though typically at the cost of higher interest rates. Working with a professional mortgage broker, like those at Dominion Lending Centres, can help guide you to the right lender for your specific situation.

Mortgage Refinance:

Refinancing is a popular way to tap into home equity, consolidate debt, or secure better mortgage terms. For refinancing, credit score requirements are generally similar to those for a purchase mortgage. A score of 600 to 680 is typical, with higher scores giving you access to lower interest rates.

One advantage of refinancing is that if your credit score has improved since you originally purchased your home, you could qualify for a more favorable mortgage. If your score is still low, alternative lenders may still offer refinancing options, but rates will be higher.

Whether you’re purchasing a home or refinancing, working with Dominion Lending Centres in Ontario can help you navigate the credit score requirements and secure the best possible mortgage solution for your needs.

As of December 15, 2024, the Canadian government has introduced significant updates to insured mortgage rules, opening new doors for homebuyers across the country. These changes aim to improve affordability and accessibility, especially for first-time buyers and those in high-priced housing markets. Here’s what you need to know:

30-Year Amortizations for First-Time Buyers
First-time homebuyers can now access insured mortgages with amortization periods of up to 30 years. This extension reduces monthly mortgage payments, making homeownership more attainable for Canadians. Additionally, buyers purchasing newly constructed homes are also eligible for this extended amortization period.

Higher Property Value Cap
The maximum property value eligible for an insured mortgage has increased from $1 million to $1.5 million. This adjustment provides much-needed relief in cities where property prices have soared, ensuring more buyers qualify for insured mortgages with lower down payments.

Updated Down Payment Structure
For properties valued up to $1.5 million, the minimum down payment remains:

• 5% on the first $500,000
• 10% on the portion of the purchase price between $500,000 and $1.5 million

These rates help buyers secure homes with manageable upfront costs.

Insurance Premium Adjustments
While the longer amortization offers financial flexibility, it’s worth noting that mortgage insurance premiums for 30-year terms may be slightly higher, increasing by approximately 0.20%. Buyers should consult with mortgage professionals to assess their options.

These changes reflect a commitment to supporting Canadians on their homeownership journey. Whether you’re a first-time buyer or looking to move into a newly constructed home, these updates could make your dream home a reality.

At Dominion Lending Centres, we’re here to guide you through these changes and find the mortgage solution that fits your needs. Contact us today to explore your options!