Are Mortgage Rates Really Going Up?

Diane Gogar • March 3, 2021

With all the economic uncertainty caused by a global pandemic, unprecedented unemployment levels, and government stimulus, mortgage rates have been on a steady decline for almost a year. In fact, we’ve hit some historic lows along the way. 


Now, despite the Bank of Canada committing to keeping interest rates low into 2023, if you’ve been listening to the media in the last couple of weeks, you may have heard that interest rates are currently on the rise. But if the government is working to keep rates low, it doesn’t make sense for them to be going up? Well, the key here is to compare apples to apples. 


The Bank of Canada controls the overnight rate target, impacting the prime rate, which impacts variable-rate mortgages. In contrast, fixed-rate mortgages get their cue from the bond market. 


So while variable rates haven’t moved, the bond market has seen a lot of action, which has caused an increase in fixed-rate mortgages. Since February 5th, Canadian bond yields have surged by almost 0.60%, bringing us to record 12-month highs. In the last 2 weeks alone, we’ve seen rate increases of 0.10% to 0.30% on certain fixed mortgage terms. 


So what does this mean for you? 


Firstly, make sure you have perspective. There isn’t an emergency here, no need to act rashly. While we’ve seen an increase in fixed-rate mortgages by up to 0.30%, we’re still in a very low rate environment. Two years ago, fixed rates were over 3%, while you can still find terms under 2% today. That’s a huge drop. 


Just because fixed-rate mortgages have gone up doesn’t mean you’ll qualify for any less of a mortgage. As the government uses a qualifying rate to stress test your mortgage, the actual contract rate isn’t used to qualify your mortgage. 


So, if you’re looking to buy a property in the next little while, interest rates are still very low. It’s a great time to get a rate hold and pre-approval. Let’s talk! At the same time, if your existing mortgage is up for renewal soon or you’d like to refinance to access some equity, interest rates are still very low, historically speaking, we should evaluate all your options. Again, let’s talk! 


Regardless of your situation, if you would like a little more clarity on how increasing rates impact you, or if you’d like to discuss mortgage financing, please reach out and contact me anytime. I would love to work with you!

DIANE GOGAR
MORTGAGE PROFESSIONAL
CONTACT ME

Deciphering the Latest Housing Affordability Initiatives in Canada

By Diane Gogar • July 9, 2025
In recent years, housing affordability has become a significant concern for many Canadians, particularly for first-time homebuyers facing soaring prices and strict mortgage qualification criteria. To address these challenges, the Canadian government has introduced several housing affordability measures. In this blog post, we'll examine these measures and their potential implications for homebuyers. Increased Home Buyer's Plan (HBP) Withdrawal Limit Effective April 16, the Home Buyer's Plan (HBP) withdrawal limit will be raised from $35,000 to $60,000. The HBP allows first-time homebuyers to withdraw funds from their Registered Retirement Savings Plan (RRSP) to use towards a down payment on a home. By increasing the withdrawal limit, the government aims to provide young Canadians with more flexibility in saving for their down payments, recognizing the growing challenges of entering the housing market. Extended Repayment Period for HBP Withdrawals In addition to increasing the withdrawal limit, the government has extended the repayment period for HBP withdrawals. Individuals who made withdrawals between January 1, 2022, and December 31, 2025, will now have five years instead of two to begin repayment. This extension provides borrowers with more time to manage their finances and repay the withdrawn amounts, alleviating some of the immediate financial pressures associated with using RRSP funds for a down payment. 30-Year Mortgage Amortizations for Newly Built Homes Starting August 1, 2024, first-time homebuyers purchasing newly built homes will be eligible for 30-year mortgage amortizations. This change extends the maximum mortgage repayment period from 25 years to 30 years, resulting in lower monthly mortgage payments. By offering longer amortization periods, the government aims to increase affordability and assist homebuyers in managing their housing expenses more effectively. Changes to the Canadian Mortgage Charter The government has also introduced changes to the Canadian Mortgage Charter to provide relief to homeowners facing financial challenges. These changes include early mortgage renewal notifications and permanent amortization relief for eligible homeowners. By implementing these measures, the government seeks to support homeowners in maintaining affordable mortgage payments and mitigating the risk of default during times of financial hardship. The recent housing affordability measures announced by the Canadian government are aimed at addressing the challenges faced by homebuyers in today's market. These measures include increasing withdrawal limits, extending repayment periods, and offering longer mortgage amortizations. The goal is to make homeownership more accessible and affordable for Canadians across the country. As these measures come into effect, it's crucial for homebuyers to stay informed about the changes and their implications. Consulting with a mortgage professional can help individuals explore their options and make informed decisions about their housing finances. If you're interested in learning more about these changes and how they may affect you, please don't hesitate to connect with us. We're here to walk you through the process and help you consider all your options and find the one that makes the most sense for you.

Your Guide To The A First Home Savings Account (FHSA)

By Diane Gogar • July 2, 2025
Dreaming of owning your first home? A First Home Savings Account (FHSA) could be your key to turning that dream into a reality. Let's dive into what an FHSA is, how it works, and why it's a smart investment for first-time homebuyers. What is an FHSA? An FHSA is a registered plan designed to help you save for your first home taxfree. If you're at least 18 years old, have a Social Insurance Number (SIN), and have not owned a home where you lived for the past four calendar years, you may be eligible to open an FHSA. Reasons to Invest in an FHSA: Save up to $40,000 for your first home. Contribute tax-free for up to 15 years. Carry over unused contribution room to the next year, up to a maximum of $8,000. Potentially reduce your tax bill and carry forward undeducted contributions indefinitely. Pay no taxes on investment earnings. Complements the Home Buyers’ Plan (HBP). How Does an FHSA Work? Open Your FHSA: Start investing tax-free by opening your FHSA. Contribute Often: Make tax-deductible contributions of up to $8,000 annually to help your money grow faster. Withdraw for Your Home: Make a tax-free withdrawal at any time to purchase your first home. Benefits of an FHSA: Tax-Deductible Contributions: Contribute up to $8,000 annually, reducing your taxable income. Tax-Free Earnings: Enjoy tax-free growth on your investments within the FHSA. No Taxes on Withdrawals: Pay $0 in taxes on withdrawals used to buy a qualifying home. Numbers to Know: $8,000: Annual tax-deductible FHSA contribution limit. $40,000: Lifetime FHSA contribution limit. $0: Taxes on FHSA earnings when used for a qualifying home purchase. In Conclusion A First Home Savings Account (FHSA) is a powerful tool for first-time homebuyers, offering tax benefits and a structured approach to saving for homeownership. By taking advantage of an FHSA, you can accelerate your journey towards owning your first home and make your dream a reality sooner than you think.