January 2022

James DeVuyst • January 1, 2022

What can we say about 2021 that hasn’t already been said, we continue to fight with an ongoing pandemic, we were struck with weather disasters that further strangled the supply chains, we’ve seen rapid inflation caused by many of these ongoing issues and to round everything out the housing supply continues to be at some of the lowest levels in history, only to be matched with ferocious demand.
 
Governments at various levels have now shifted the blame from “Foreign Investors” to “Canadian Investors” if we remember only 4 years ago, they put measures in place to curb foreign investment, and now we’re seeing governments getting ready to do the same to Canadians through various new measures. There are rumblings the federal government is looking to increase the down payment requirement from 20% to potentially 25-30% on all non-owner-occupied homes and a potential “no flipping” tax on primary residences that are sold in less than 12 months. All this has amounted to noise over the real issue, supply, supply, supply.
 
Statistics released this week from Canadian Real Estate authorities show that while the country’s stock of available homes for sale sits at record lows, the pace of building new units is also slowing. Canada Mortgage and Housing Corp. said the annual pace of housing starts in December fell 22 percent when compared with November. These are concerning times ahead and unless municipalities get on board with approving permits faster, incentivizing developers, and building outside the box, we will continue 2022 with many of the same problems.


Rates will be on the Rise

 
As we’ve seen during 2020 and 2021, rates have remained at the lowest levels in history. Remember when 2.99% on a 5-year fixed was considered “too low” by the Federal Government?
 
What we can expect for 2022 is rates will rise and the Bank of Canada will make changes to the overnight lending rate to curb the increased inflation we’ve seen at various levels from supply chain issues and increased government spending.
 
We have also seen Canadians take on more mortgage debt than ever before, however despite a record rise in Canadian mortgage debt and home prices in nearly every province, the expected default increase never happened. Total residential mortgage debt in Canada is now $2.14 trillion, according to Statistics Canada, the highest level on record; however, the Canadian Bankers Association report released October 14 revealed that, as of July 31, there were only 9,157 mortgages in arrears out of a total of 4.97 million residential mortgages in Canada. This amounts to a 0.18% default rate – considered low even by the Canadian standard, which traditionally has a default rate in the 0.30% range.
 
Canadians take pride in homeownership that even through a pandemic we managed to take on more mortgage debt and lowered our national default rate.



My Advice to You
 
We have been in this position before, the media, the government, and family and friends have stated to us that we need to “lock in” and be afraid that rates will increase so high that we will go back to the times of 15-20%, this will not happen. It cannot happen. In the last 18 years, rates haven’t increased past 6% (2008), and over the last 10 years, they have been below 3.5%.
 
If we break down the numbers and look at this with logic, we are left with the following. Prior to the pandemic, we saw the overnight lending rate at 1.75%, this translated into lower discounts offered by all major banks, which were in the range of prime (3.95%) -0.50% to -0.75%. We were paying a net rate of around 3.20%-3.45% depending on your discount secured.
 
Now when we look at what happened over the last 2 years going into our 3rd year, we saw banks offer variable discounts at record lows, in the range from prime (2.45%) -1.00 to -1.40%, this has translated to net rates of 1.05-1.45%. When the Bank of Canada starts to increase the overnight lending rate, for example, let’s say they go back to 2019 levels, we would see rates sitting at 2.65% (based on a net rate of 1.30%), remember that 2.99% we talked about?
 
The outlier with locking in your rate once the rumblings start is breaking your mortgage when you lock in, “the mortgage industry estimates the percentage of people who break a mortgage before maturity range from 33 percent to 60 percent. People underestimate how much life circumstances can change in five years.” If the pandemic has taught us anything this would be it. We also need to consider, a little unknown statistic, banks have increased the price of discharging a fixed rate mortgage. In 2019 we saw banks charging anywhere between 3-4% of your outstanding mortgage amount, once the pandemic hit, we saw this quietly increase to between 5-6% of your outstanding mortgage amount. With Canadians on average breaking their mortgage every 38 months, whether it be from refinancing or selling their home, this can be a catastrophic financial hit. So, before we start running to lock in our huge variable rate discounts, remember these points.
 
As always, I’m available for calls to discuss these points and your own personal financial situation. I would encourage everyone to reach out if they’re concerned or if you’re looking to make a purchase or refinance your mortgage in 2022!

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Everything You Should Know Before Buying a Home

By James De Vuyst • May 14, 2026
Thinking About Buying a Home? Here’s What to Know Before You Start Whether you're buying your very first home or preparing for your next move, the process can feel overwhelming—especially with so many unknowns. But it doesn’t have to be. With the right guidance and preparation, you can approach your home purchase with clarity and confidence. This article will walk you through a high-level overview of what lenders look for and what you’ll need to consider in the early stages of buying a home. Once you’re ready to move forward with a pre-approval, we’ll dive into the details together. 1. Are You Credit-Ready? One of the first things a lender will evaluate is your credit history. Your credit profile helps determine your risk level—and whether you're likely to repay your mortgage as agreed. To be considered “established,” you’ll need: At least two active credit accounts (like credit cards, loans, or lines of credit) Each with a minimum limit of $2,500 Reporting for at least two years Just as important: your repayment history. Make all your payments on time, every time. A missed payment won’t usually impact your credit unless you’re 30 days or more past due—but even one slip can lower your score. 2. Is Your Income Reliable? Lenders are trusting you with hundreds of thousands of dollars, so they want to be confident that your income is stable enough to support regular mortgage payments. Salaried employees in permanent positions generally have the easiest time qualifying. If you’re self-employed, or your income includes commission, overtime, or bonuses, expect to provide at least two years’ worth of income documentation. The more predictable your income, the easier it is to qualify. 3. What’s Your Down Payment Plan? Every mortgage requires some amount of money upfront. In Canada, the minimum down payment is: 5% on the first $500,000 of the purchase price 10% on the portion above $500,000 20% for homes over $1 million You’ll also need to show proof of at least 1.5% of the purchase price for closing costs (think legal fees, appraisals, and taxes). The best source of a down payment is your own savings, supported by a 90-day history in your bank account. But gifted funds from immediate family and proceeds from a property sale are also acceptable. 4. How Much Can You Actually Afford? There’s a big difference between what you feel you can afford and what you can prove you can afford. Lenders base your approval on verifiable documentation—not assumptions. Your approval amount depends on a variety of factors, including: Income and employment history Existing debts Credit score Down payment amount Property taxes and heating costs for the home All of these factors are used to calculate your debt service ratios—a key indicator of whether your mortgage is affordable. Start Early, Plan Smart Even if you’re months (or more) away from buying, the best time to start planning is now. When you work with an independent mortgage professional, you get access to expert advice at no cost to you. We can: Review your credit profile Help you understand how lenders view your income Guide your down payment planning Determine how much you can qualify to borrow Build a roadmap if your finances need some fine-tuning If you're ready to start mapping out your home buying plan or want to know where you stand today, let’s talk. It would be a pleasure to help you get mortgage-ready.

Start Smart: Get Pre-Approved for Your Mortgage

By James De Vuyst • April 30, 2026
Thinking of Buying a Home? Here’s Why Getting Pre-Approved Is Key If you’re ready to buy a home but aren’t sure where to begin, the answer is simple: start with a pre-approval. It’s one of the most important first steps in your home-buying journey—and here's why. Why a Pre-Approval is Crucial Imagine walking into a restaurant, hungry and excited to order, but unsure if your credit card will cover the bill. It’s the same situation with buying a home. You can browse listings online all day, but until you know how much you can afford, you’re just window shopping. Getting pre-approved for a mortgage is like finding out the price range you can comfortably shop within before you start looking at homes with a real estate agent. It sets you up for success and saves you from wasting time on properties that might be out of reach. What Exactly is a Pre-Approval? A pre-approval isn’t a guarantee. It’s not a promise that a lender will give you a mortgage no matter what happens with your finances. It’s more like a preview of your financial health, giving you a clear idea of how much you can borrow, based on the information you provide at the time. Think of it as a roadmap. After going through the pre-approval process, you’ll have a much clearer picture of what you can afford and what you need to do to make the final approval process smoother. What Happens During the Pre-Approval Process? When you apply for a pre-approval, lenders will look at a few key areas: Your income Your credit history Your assets and liabilities The property you’re interested in This comprehensive review will uncover any potential hurdles that could prevent you from securing financing later on. The earlier you identify these challenges, the better. Potential Issues a Pre-Approval Can Reveal Even if you feel confident that your finances are in good shape, a pre-approval might uncover issues you didn’t expect: Recent job changes or probation periods An income that’s heavily commission-based or reliant on extra shifts Errors or collections on your credit report Lack of a well-established credit history Insufficient funds saved for a down payment Existing debt reducing your qualification amount Any other financial blind spots you might not be aware of By addressing these issues early, you give yourself the best chance of securing the mortgage you need. A pre-approval makes sure there are no surprises along the way. Pre-Approval vs. Pre-Qualification: What’s the Difference? It’s important to understand that a pre-approval is more than just a quick online estimate. Unlike pre-qualification—which can sometimes be based on limited information and calculations—a pre-approval involves a thorough review of your finances. This includes looking at your credit report, providing detailed documents, and having a conversation with a mortgage professional about your options. Why Get Pre-Approved Now? The best time to secure a pre-approval is as soon as possible. The process is free and carries no risk—it just gives you a clear path forward. It’s never too early to start, and by doing so, you’ll be in a much stronger position when you're ready to make an offer on your dream home. Let’s Make Your Home Buying Journey Smooth A well-planned mortgage process can make all the difference in securing your home. If you’re ready to get pre-approved or just want to chat about your options, I’d love to help. Let’s make your home-buying experience a smooth and successful one!

Bank of Canada Holds Rate at 2.25% — April 29, 2026

By James De Vuyst • April 29, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. This decision comes against a backdrop of significant global uncertainty — and for Canadian homeowners, buyers, and anyone with a mortgage coming up for renewal, here's what it means.