Good News for Homeowners: Bank of Canada Cuts Interest Rates Again

Jamie Ushko • September 4, 2024

If you've been keeping an eye on your mortgage payments or considering buying a home, we've got some exciting news for you. The Bank of Canada has just announced another interest rate cut, and it could mean more money in your pocket.


What's Happening?

On September 4, 2024, the Bank of Canada reduced its key overnight rate from 4.5% to 4.25%. This is the third rate cut in recent months, following similar reductions in June and July. Even better, the central bank has hinted at more cuts to come in the near future.

What Does This Mean for You?

  1. If you have a variable-rate mortgage: You're in luck! Your interest rate will decrease, potentially lowering your monthly payments.
  2. If you have a home equity line of credit (HELOC): You'll likely see a reduction in your interest rate as well.
  3. If you're renewing your mortgage soon: This rate cut could mean better terms when you renew.
  4. If you're a first-time homebuyer: Lower interest rates could make homeownership more affordable and increase your purchasing power.
  5. If you have a fixed-rate mortgage: While your current rate won't change, you might benefit from lower rates when it's time to renew.


The Bigger Picture

These rate cuts are part of a broader effort to provide relief to homeowners and stimulate the economy. Here in British Columbia, where housing costs have been a significant concern, this news is particularly welcome.


Recent data shows that inflation is cooling down, with the Consumer Price Index increasing by 2.5% in July, down from 2.7% in June. The Canadian economy is also showing signs of growth, which is encouraging for long-term financial stability.


What's Next?

If you're considering buying a home, refinancing your mortgage, or simply want to understand how these changes affect your financial situation, now is a great time to talk to a mortgage professional. We can help you navigate these changes and find the best solution for your unique circumstances.

Remember, every financial decision is personal, and what works for one person might not be the best for another. That's why it's crucial to get expert advice tailored to your situation.



Want to learn more about how the recent rate cut could benefit you? Give us a call or schedule an appointment. We're here to help you make the most of this opportunity and achieve your homeownership goals.


Stay tuned for more updates as we continue to monitor these exciting developments in the Canadian mortgage landscape!

Jamie Ushko

Mortgage Broker

Down Payment Options for Canadian Homebuyers

By Jamie Ushko • June 3, 2026
For most Canadians, the down payment is the biggest hurdle to homeownership. A down payment is the initial amount you contribute toward your property purchase, while the lender covers the rest through a mortgage. By law, Canadian lenders can only finance up to 95% of a property’s value, which means you’ll need at least 5% down to qualify. If you’re putting down less than 20%, your mortgage must be insured through one of Canada’s three default insurance providers— CMHC, Sagen (formerly Genworth), or Canada Guaranty . This insurance comes at a cost, but it can be rolled into your mortgage amount. The less you put down, the higher the premium. Since saving a down payment can feel overwhelming, it helps to know the different sources you can draw from. Here are the most common options available to Canadian homebuyers: 1. Savings & Personal Resources The most straightforward source is your own savings. Lenders will ask to see a 90-day history of the funds in your account. Any large deposits outside of regular payroll must be explained with documentation—such as the sale of a vehicle or a transfer from an investment account. This requirement isn’t just red tape; it’s part of Canada’s anti-money laundering rules. 2. Proceeds from the Sale of a Property If you’ve recently sold another home, you can use the proceeds as a down payment on your new purchase. Proof of the sale—such as the final statement of adjustments from your lawyer—will be required. 3. RRSP Home Buyers’ Plan (HBP) First-time buyers can withdraw up to $35,000 each (or $70,000 as a couple) from their RRSPs to put toward a down payment under the federal Home Buyers’ Plan . The funds are withdrawn tax-free, but they must be repaid over a 15-year period. This is a popular option for buyers who have been steadily contributing to their retirement savings. 4. Gifted Down Payment With today’s housing prices, many buyers turn to family for help. A parent or immediate family member can provide a gift that makes up part—or even all—of the required down payment. The lender will require a signed gift letter confirming that the money is a true gift (with no repayment expected) and proof that the funds have been deposited into your account. 5. Borrowed Down Payment In some cases, you may be able to borrow your down payment. This option is usually available only if you have strong credit and sufficient income. The payments on the borrowed funds are factored into your debt service ratios, so affordability is key. Lenders typically use 3% of the outstanding balance when calculating the additional payment. The Bottom Line A down payment doesn’t have to come from just one source—it can be a combination of savings, gifted funds, RRSPs, or other resources. What matters most is being able to show where the money came from and that it meets lender requirements. If you’d like to explore your options or learn how much you might qualify for, it’s never too early to start the conversation. Connect with us today—we’d be happy to help you create a plan and take the first steps toward homeownership.

Stress-Testing Your Mortgage Affordability: Why It Matters

By Jamie Ushko • May 27, 2026
Buying a home is one of the biggest financial commitments you’ll ever make. That’s why lenders want to be sure you can handle your mortgage payments—not just today, but also if interest rates rise in the future. This is where the mortgage stress test comes in. Many Canadians hear the term but aren’t entirely sure what it means or how it affects them. Let’s break it down in plain language. What Is the Mortgage Stress Test? The stress test is a rule introduced by the federal government that requires all mortgage applicants to qualify at a higher rate than the one they’ll actually pay. Currently, you must qualify at the greater of your contract rate + 2% or the benchmark qualifying rate (set by the Office of the Superintendent of Financial Institutions). For example: If your lender offers you a 5-year fixed mortgage at 5.25%, you must show you could still afford the payments at 7.25% . Even if rates don’t rise that high, the stress test ensures you won’t be overextended if they do. Why Does It Matter? The stress test protects both borrowers and lenders by: Preventing over-borrowing : It ensures you don’t take on more debt than you can realistically handle. Preparing for rate hikes : With interest rates fluctuating, it’s a safeguard against sudden increases. Strengthening financial stability : It lowers the risk of defaults, protecting the housing market as a whole. While it can sometimes feel like a barrier—reducing the amount you qualify for—it’s ultimately designed to keep you from becoming “house poor.” How Does It Impact Buyers? The stress test can significantly affect your homebuying budget. For example, without it, you might qualify for a $600,000 mortgage, but with the stress test applied, you may only qualify for $500,000. That doesn’t mean your dream of homeownership is out of reach—it just means you may need to adjust expectations or explore other strategies, such as: Increasing your down payment Paying down existing debts Considering alternative lenders who may have different qualification standards Why Work With a Mortgage Professional? Every lender applies the stress test, but not every lender views your application the same way. An independent mortgage professional can: Shop multiple lenders to find the best fit Run affordability scenarios at different rates Help you understand how much house you can truly afford—without stretching your finances too thin The Bottom Line The mortgage stress test isn’t meant to stop you from buying a home—it’s there to protect you from financial strain down the road. By understanding how it works and planning ahead, you can make smarter choices and buy with confidence. If you’re thinking about purchasing a home, refinancing, or simply want to know how the stress test affects your options, connect with us today. We’ll help you stress-test your budget and find the mortgage solution that works best for you.