Many newer mortgage borrowers in Canada have never seen mortgage interest rates with any rate starting at 4% or higher. For others, you might recall when mortgage interest rates hit a staggering 21% in the early 1980s. This article is directed to anyone who has a mortgage renewal coming up in the next 18 months and is worried about how much higher their replacement mortgage payments will be, plus strategies to reduce the payment and to manage the stress.

As of January 1, 2023 the Canadian Government has enacted a temporary two-year ban (2023-2024) on non-Canadian purchase of residential real estate. The legislation link is here.

Life has certainly kept us on our toes the last couple of years. At this point, I'm sure that most of us are yearning for some of the relative normalcy of years past, however looking forward into 2023, it doesn’t seem like there will be much of a let up. Buckle up your seat belts and get ready for another interesting year. As a mortgage broker and economist by training, here is a list of 4 trends that I will be keeping a close eye on over the coming year, which should help provide some context to understand what is going on in the world of Canadian real estate. 

Normally in purchase financing, mortgage lenders have a rule that their loan be based upon 1) the appraised value of the property, or 2) the purchase price, whichever is less. But what if the property has appreciated considerably since the purchase price was agreed to years ago, as may be the case in pre-sale condominium and pre-construction purchase agreements and even rent-to-own transactions? The question then becomes, can I get a pre-sale condo mortgage based on the higher market value? Can I use price appreciation as my mortgage down payment?

Client is 55, single, and behind on retirement savings. A case-study in pre-retirement mortgage planning.

I have a client - let's call him Ted - who recently reached out to me to do some mortgage planning.