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With over two decades in lending and underwriting, I’ve seen how the right mortgage structure can transform a home purchase. The Purchase Plus Improvements Mortgage is a valuable tool for Canadian buyers looking to roll approved renovation costs—like updates to kitchens, baths, windows, roofs, plumbing, or heating—right into their home loan. This approach allows you to combine the purchase price and renovation expenses, rather than dealing with separate financing arrangements. Lenders will look at both the current and estimated post-renovation value, but remember: your borrowing power and down payment are based on the lower figure between the total purchase plus improvements or the projected improved value. Typically, renovation funds are advanced after work is complete and inspected; smaller jobs might see a single payout, while larger projects often involve staged draws. To boost your chances of approval, come prepared with detailed estimates, a clear timeline, proof of stable finances, and some extra savings. If you’re an existing homeowner or planning a major rebuild, different financing options may be more suitable. Having financed thousands of deals, I know how these details can make all the difference in finding the right fit for your goals.

With over two decades in lending and underwriting, I pay close attention to shifts in mortgage stress—especially here in Ontario, where we’ve just seen balances 60+ days past due climb to about 0.4% by late Q2. That’s a 10 basis point increase year over year, representing the sharpest jump in the country. The account-level delinquency rate also nudged up 6 bps to around 0.3%, again the largest provincial move. What stands out to me is that these delinquencies are becoming more concentrated among borrowers with larger mortgage balances. The report connects this trend to the affordability squeeze and payment shocks for those who took on mortgages during the 2022–2023 rate hikes—a scenario I’ve helped many clients navigate. On a positive note, mortgages originated this year are performing better overall, and most of the elevated stress is isolated to a small subprime segment. Each situation is unique, and experience tells me there is always a path forward.

We're now seeing the last wave of Canada’s pandemic-era low-rate mortgages come up for renewal—about 12% of all outstanding mortgages. If you locked in during 2021’s ultra-low rates, you might be facing some changes. According to a recent survey, 38% of borrowers expect their monthly payments to increase, while 31% anticipate little change and 17% are looking at a potential decrease. Most households are navigating these transitions well, and widespread defaults haven’t emerged, though it’s natural that about a third of borrowers are feeling more anxious than before. For those expecting higher payments, 76% say their household finances will be under more pressure, but interestingly, 71% still plan to keep their current living arrangements. When it comes to renewal choices, 43% are leaning toward a fixed rate, 39% want to review all their options, and 49% intend to stay with their current lender. With over 20 years of lending and underwriting experience and thousands of deals financed, I’ve seen how important it is to tailor solutions to each situation. If you’re facing renewal, understanding your options is key to managing these changes confidently.

With over two decades in lending and underwriting, I’ve seen firsthand how most Canadians experience a smooth mortgage renewal. Lenders are generally eager to retain existing clients, and in many cases, you won’t need to requalify for a straightforward renewal. However, I’ve noticed renewal denials tend to pop up when there’s been missed payments, reduced income, a dip in credit, or rising debt levels—trends that housing agencies have recently flagged with increasing arrears.

If you are ever notified of a renewal denial, federally regulated lenders must give you 21 days’ notice. Use that window to dig into the details—find out the specific reason, check for credit report errors, and have a candid conversation with your lender about possible relief options. Remember, a denial from one lender doesn’t mean you’re out of options: other lenders may view your situation differently, and a simple switch usually avoids the federal stress test.

From my experience, the best approach is to start renewal conversations four to six months before maturity. And if you find yourself exploring B or private lenders, see them as short-term bridges while we work toward a longer-term solution tailored to your needs.

With over two decades navigating the lending landscape, I keep a close watch on the factors shaping your mortgage experience. Right now, the Bank of Canada policy rate holds at 2.25%, and most industry forecasts suggest we’ll see interest rates remain largely stable through 2026. Canada’s prime rate is hovering near 4.45%, and with inflation at about 2.3%, current signals suggest borrowing costs are likely to hold steady rather than drop dramatically. What does this mean for you? By the end of 2026, about a third of Canadian mortgage holders are expected to encounter higher payments when it’s time to renew. For those with 5-year fixed mortgages up for renewal, the average payment increase could be around 20%, reflecting the end of those ultra-low pandemic-era rates. Having financed thousands of deals, I understand how these shifts can impact your financial planning—and I’m always here to help you find a solution that fits your situation.

Looking ahead to 2026, mortgage experts anticipate a gradual decrease in interest rates, with the possibility of rates dipping below 6% for the first time since 2022. The current forecast suggests an average of 6.1%, with lows around 5.7% and highs at 6.5%. That average is down 0.2 points from December 2025. Industry voices like Rossman are forecasting averages closer to 5.5%, pointing to potential Federal Reserve cuts, the ongoing battle with inflation, and broader economic uncertainties as key factors shaping the landscape.

For those considering a move—whether it’s stepping into homeownership for the first time or relocating—a lower rate environment could open new doors. Refinancing from a 7.25% rate down to 6% could mean saving over $330 every month, which is a significant shift for many households. With more than two decades of lending and underwriting experience, I’ve seen how these market movements can directly impact real people and their financial options. My approach is always to find the solution that fits your unique situation, not a one-size-fits-all answer.

If you’re planning ahead, be strategic: compare lenders, aim for a credit score above 780, and remember—it’s difficult to time the market perfectly. Instead, focus on what fits your life now, knowing you can always revisit your financing if rates improve down the line.