Yesterday morning the Bank of Canada cut its policy rate by 25 basis points, lowering it to 3.00%. This is the sixth straight rate cut and will result in a lower prime rate—which affects variable-rate mortgages and other loans.

We anticipate most lenders will lower their prime rates to 5.20% in the coming days, with TD Bank’s mortgage prime, which is priced slightly higher, likely dropping to 5.35%.

If you’d like to read more details, you can find the full statement from the Bank of Canada here.

How does this impact you?

• For variable-rate mortgage holders: You may see a drop in your interest costs soon. If your payments are fixed, a larger portion of your payment will go towards your principal balance. If your payments adjust with the prime rate, your monthly payment should decrease by about $14 per $100,000 of mortgage debt (on a 25-year amortization).
• If you have a fixed-rate mortgage: Your payments won’t change for now, so you can expect no immediate impact.
• Other loans tied to the prime rate: Personal loans or lines of credit will also see interest charges decrease.

Looking ahead

The Bank of Canada’s next rate decision is scheduled for March 12, so there will be plenty of economic data released in the meantime that could influence the Bank’s next rate decision. 

As always, if you’d like to discuss how this change affects your mortgage or explore your options, I’m here to help!

When buying a home in Canada, most people focus on the purchase price and their mortgage approval. But there’s another important expense to prepare for: closing costs. These are additional fees and expenses that must be paid on top of your down payment when finalizing your home purchase. As a mortgage broker, I often remind clients that understanding these costs upfront can save a lot of stress later.

What Are Closing Costs?
​Closing costs cover various legal, administrative, and financial requirements associated with transferring property ownership. While these costs vary depending on the province, type of property, and price, they typically range from 1.5% to 3% of the home’s purchase price.
Common Closing Costs in Canada

1. Land Transfer Tax (LTT):
   This is the largest closing cost for most buyers. Provinces—and in some cases, municipalities—charge LTT, which is calculated as a percentage of the home’s price.  .
2. Legal Fees:
   You’ll need a real estate lawyer to handle the transfer of ownership, review the purchase agreement, and register your mortgage. Legal fees typically range from $800 to $2,000 when including all of the extras that get tacked on.
3. Home Inspection Fees:
   If you opt for a home inspection, expect to pay $300 to $500. While optional, inspections can save you from unexpected repair costs after you move in.
4. Title Insurance:
   Title insurance protects against potential disputes or claims related to your property title. This one-time cost is usually between $300 and $600. This is mandatory with lenders in Canada.
5. Adjustment Costs:
   These are reimbursements to the seller for property taxes, utilities, or condo fees they’ve prepaid beyond your closing date.

Budgeting for Closing Costs
Lenders often require proof that you can cover your closing costs, so it’s essential to save for these alongside your down payment. A good rule of thumb is to set aside 3% to 4% of the home’s purchase price to cover these expenses.
If you’re unsure about what closing costs to expect or how to plan for them, reach out to a mortgage broker. We’re here to help you navigate every step of the homebuying process, ensuring no surprises on closing day!
Ready to take the next step? Contact me to get started on your homebuying journey!

When it comes to securing a mortgage, you have options. As a licensed mortgage broker, I firmly believe in empowering my clients with choice, personalized service, and tailored solutions. While bank employees can help, the flexibility and expertise I bring as an independent advocate set me apart. Here's why working with a mortgage broker like me could be your smartest move.

1. I Work for You, Not the Bank As a mortgage broker, I represent your interests—not those of a single financial institution. Unlike bank employees who are tied to their employer’s products, I have access to a broad range of lenders, including:

• Major banks
• Credit unions
• Private lenders
• Specialized mortgage companies

This independence means I can shop around to find the best rates and terms for you. My priority is to secure a mortgage solution that fits your unique needs, not to sell you a one-size-fits-all product.

2. You Get More Options Banks can only offer their own products. That’s fine if their terms align with your needs, but what happens if they don’t? That’s where I come in. I work with multiple lenders, giving you access to a wider variety of options that may offer:

• Lower interest rates
• Better repayment terms
• Flexible conditions

Whether you’re self-employed, have a challenging credit history, or need something unconventional, I have the resources to help.

3. Personalized and Expert Advice Every borrower is unique, and your mortgage should reflect that. As a licensed broker, I don’t just crunch numbers; I listen to your story, understand your goals, and tailor solutions to your circumstances. My training and experience enable me to navigate complex scenarios, such as:

• Refinancing your home
• Securing a mortgage for an investment property
• Finding solutions for non-traditional income

While a bank employee may focus on fitting you into their pre-set offerings, I work to customize your mortgage plan.

4. Convenience and Flexibility Buying a home or refinancing isn’t a 9-to-5 process. I’m here when you need me—whether it’s during evenings, weekends, or when time-sensitive opportunities arise. My flexibility ensures you can get the support you need without interrupting your life.

5. Transparent Costs In most cases, my services are free to you. I’m paid by the lender for placing your mortgage. If a fee is required for more specialized products (such as private lending), I’m upfront about it from the start. Transparency is at the core of my service.

6. Your Advocate in the Process Mortgage applications can feel overwhelming. The forms, the jargon, the back-and-forth with lenders—it’s a lot. That’s why I handle the heavy lifting for you, from comparing lenders to negotiating terms and securing approval. I ensure the process is smooth, straightforward, and stress-free.

Why Not a Bank Employee? Let’s face it: bank employees work for the bank. Their job is to sell you their institution’s products, whether or not they’re the best fit for you. They may offer competitive rates, but without the ability to shop around, you could miss out on better deals elsewhere.
Moreover, bank employees are typically bound by standard working hours. When time-sensitive opportunities arise—like locking in a great rate—you might not get the timely response you need.

Your Mortgage, Your Choice Choosing a mortgage is one of the most important financial decisions you’ll make. As a mortgage broker, I’m here to ensure you get the best possible outcome, tailored to your unique needs. With me on your side, you’ll have access to more options, expert advice, and an advocate who’s truly working for you.
Ready to explore your options? Let’s chat and find the mortgage that’s perfect for you.