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Global News
5 days ago
- Business
- Global News
60% of Canadians renewing mortgages could see payments go up by 2026
Most Canadian mortgage holders renewing their mortgages in 2025 or 2026 are likely to see an increase in their monthly payments, a recent report by the Bank of Canada says. Most of these borrowers hold a five-year, fixed-rate mortgage, the central bank said, and could see their monthly payments increase by 15-20 per cent. 'Compared with December 2024 payments, the average monthly mortgage payment could be 10% higher for those renewing in 2025 and 6% higher for those renewing in 2026,' the report read. However, the picture looks very different for those who are planning on renewing variable-rate mortgages. For them, a renewal might lead to a decline in monthly payments of five to seven per cent. This comes amidst cost-of-living increases since the start of the COVID-19 pandemic. According to the Bank of Canada's inflation calculator, there has been an annual rate of inflation increase of 3.68 per cent since 2020. This means that something that cost $100 in 2020 would cost around $120 in 2025. Story continues below advertisement 1:53 Homeownership most affordable in 3 years: report estimates that these increased payments could result in Canadian households paying an average of around $5,000 more every year. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Paying nearly $5,100 more on the mortgage annually is a considerable stretch for many Canadian households,' said Penelope Graham, mortgage expert at While lenders typically offer lower rates to new customers, instead of returning ones, Graham said those renewing have some options to keep costs down. 'If possible, accelerating payments or making a lump sum payment to lower the overall principal mortgage amount before the term is up is an ideal way to shrink payments at renewal time,' she said. However, switching from a fixed-rate to a variable-rate mortgage comes with risks, Graham said. The Bank of Canada's overnight lending rate has dropped 225 basis points since June 2024, bringing variable rates down with it. It is unclear whether the bank will cut rates further. Story continues below advertisement For Canadians concerned about meeting their mortgage payments if an increase takes place, Graham recommends reaching out to your lender. 'They can help you find a solution, including temporarily deferring your payments,' she said.
Yahoo
24-06-2025
- Business
- Yahoo
Posthaste: Here's 5 Canadian cities where you can make less and still buy a home
Housing affordability has improved in many places across the country, but the small window that opened recently appears to be rapidly closing, says a new survey. Affordability started to erode in May in eight of the 13 major metropolitan markets because home prices rose and borrowing rates stayed the same, according to an online mortgage aggregator, thereby putting upward pressure on the amount of income needed to become a homeowner. The Canadian Real Estate Association (CREA) said sales in May rose 3.6 per cent month over month as homebuyers emerged from their protective shell. It was the first month-over-month increase in sales since November. Prices also rose month over month 1.9 per cent, CREA said. Prior to that, elevated interest rates made homebuying similar to the pandemic years. More recently, rising global economic uncertainty unleashed by United States President Donald Trump forced many Canadian homebuyers to park their real estate aspirations, leading to falling prices and sales across the country. The top three price increases were recorded in St. John's, N.L., where prices jumped $8,900 in May from April to an average price of $378,300; Halifax, where prices rose $7,600 to $570,600; and Regina, where they were up $5,400 to $340,800. In St. John's, the income required to qualify for a mortgage climbed $1,690 to $86,450 per year. These calculations are based on a mortgage with a 10 per cent down payment, 25-year amortization, mortgage rate of 4.38 per cent and stress test rate of 6.38 per cent. In Montreal and Toronto, prices rose $5,200 and $3,400, respectively, to $580,100 and a bit more than $1 million. The required income to qualify for a mortgage increased by $980 and $650, respectively, to $124,620 and $206,500. Winnipeg, Edmonton and Fredericton had the smallest price gains. However, five other cities recorded falling prices and improved affordability. The largest price drop was recorded in Hamilton, about an hour east of Toronto, where prices fell $18,300 to an average price of $783,100. It had the biggest improvement in affordability for the second consecutive month. In Vancouver, one of Canada's most expensive housing markets, prices fell $7,500 to almost $1.2 million. Prices in Victoria and Ottawa fell $4,600 and $1,400, respectively, to $892,700 and $629,800. In Calgary, prices were flat at $583,000. In Hamilton, Ratehub said monthly mortgage payments in May dropped by $93 and that the amount of income required to qualify for a mortgage was $163,020, down $3,480. A majority of homebuyers have indicated they are willing to adjust where they would live to gain some affordability if prices continue to rise in their desired location. For example, 52 per cent of potential homebuyers surveyed by Zoocasa said they were open to living in a secondary city such as London, Ont., or Fredericton, but would have to do more research to make sure life there is more affordable. The survey also said people hold an increasingly dim view of housing affordability in Canada, with 67 per cent indicating they believe housing in this country is somewhat to much less affordable compared with other countries. The survey of 1,000 Zoocasa blog readers and newsletter subscribers was conducted between Jan. 30 and April 28. It has a margin of error of two per cent. to get Posthaste delivered straight to your world is getting wealthier, with the ranks of those with US$1 million or more continuing to expand, according to a recent report from Swiss financial services firm UBS Group AG. In Canada, median wealth per adult ballooned by nearly 10 per cent in local currency in 2024, the report stated. Real estate appreciation and a robust stock market last year are among the factors contributing to this, said Josh Sheluk, portfolio manager at Verecan Capital Management. 'I think as long as you're having growth of economies globally, you're going to see spillover effects to Canada and, quite frankly, to most regions of the world,' Sheluk said. 'I think we're well positioned here in Canada to benefit.' — Serah Louis, Financial Post Read more here. Toronto Tech Week continues Today's Data: Statistics Canada reports May inflation. U.S. Philadelphia Fed non-manufacturing activity, current account balance Earnings: BlackBerry Ltd., Salesforce Inc., The Campbell's Company, Dollar Tree Inc., Foot Locker Inc., American Eagle Outfitters Inc., Dollar General Corp., Tilly's Inc., Victoria's Secret & Co. David Rosenberg: How did the Canadian market hit a new record? Gold exposure has helped Soaring costs are forcing some Canadians to limit vet visits or even give up their pets M&A in Canadian oil and gas accelerating: 'We see a lot of consolidation' says Keyera CEO The average Canadian family will save $280 on their taxes next year from the Liberal government's planned income tax cut, the parliamentary budget officer said in an analysis. Find out more here. Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@ with your contact info and the gist of your problem and we'll find some experts to help you out while writing a Family Finance story about it (we'll keep your name out of it, of course). Want to learn more about mortgages? Mortgage strategist Robert McLister's Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won't want to miss. Plus check his mortgage rate page for Canada's lowest national mortgage rates, updated daily. Visit the Financial Post's YouTube channel for interviews with Canada's leading experts in business, economics, housing, the energy sector and more. Today's Posthaste was written by Gigi Suhanic with additional reporting from Financial Post staff, The Canadian Press and Bloomberg. Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@ Posthaste: Canadians would pay yearly $20 Canada Post subsidy to support cross-country service, poll finds Posthaste: Canadian renters are waiting for home prices to drop before buying — they could be disappointed Sign in to access your portfolio
Global News
20-06-2025
- Business
- Global News
Buying a house got costlier in May. What should your household income be?
Signs of a rebound may be emerging in Canada's real estate market after months of declining home prices. While buyer-friendly conditions persist in some markets, many Canadians will have to shell out more for their monthly mortgage payments, a new report shows. The monthly home affordability report by looked at home prices and mortgage rates from 13 Canadian cities. In eight of those cities, mortgage affordability got worse in May. Penelope Graham, mortgage expert at said the buyer-friendly market conditions are unlikely to last for very long. 'While buyers have enjoyed attractive housing affordability conditions throughout the spring, those days may be numbered. The latest May national housing data reveals sales are firming up over the short term,' she said. While mortgage rates remained largely unchanged, rising home prices mean you'd have to spend more money on your monthly mortgage payments, depending on where you live. For most Canadian cities, the annual household income you'd need to get approved for a mortgage has also gone up. Story continues below advertisement In May, the price of the average Canadian home was $691,299. While that is still down 1.8 per cent compared with this time last year, it is an increase of 1.9 per cent compared with April this year. A Royal Bank of Canada report said buyers are expected to dive back into the market as the uncertainty around U.S. tariffs becomes clearer. 'We expect housing market confidence to gradually rebuild as tariff de-escalation lifts some of the uncertainty that hindered activity earlier this year,' RBC economist Robert Hogue said in the report. 1:54 Business Matters: Canada's housing market in holding pattern, CREA data shows Costlier mortgages The data from Ratehub's report is based on a 10 per cent down payment with a 25-year amortization. The city that saw the highest increase in monthly mortgage payments was St. John's, N.L., where someone locking down their mortgage in May would have to pay $45 more and would need an annual household income of $86,450. Story continues below advertisement 'St. John's saw the most significant increase, with $1,690 in additional income required to purchase the average home. This is due to home prices rising ($8,900), the biggest increase of all the cities,' Graham said. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Halifax also saw affordability worsen, with the average resident paying an additional $38 a month for their mortgage. They would need a household income of $122,830 (an increase of $1,430) to buy a house. Regina (increase of $27) and Montreal (increase of $26) both saw monthly mortgage costs go up. In Regina, you would need an annual household income of $79,350 (an increase of $1,020 since April) and in Montreal, you'd need $124,620 (an increase of $980 since April). After a drop in home prices in April, the price for an average home in Toronto rose $3,400 to $1,012,800 in May. A Torontonian would have to spend $17 more ($5,139 a month) and need an annual household income of $206,500 to be able to afford a home. Winnipeg saw monthly mortgage costs rise by $13 a month to $1,968 and the average Winnipegger would need $88,250 annually to be able to buy a house. Edmonton ($7) and Fredericton ($5) both saw minor increases in monthly mortgage costs. In Edmonton, you'd need an annual household income of $96,670, while in Fredericton, you'd need $78,200. The only city that saw no change in affordability was Calgary. The average home price in the city remained the same as in April ($583,000), as did the monthly mortgage cost ($2,958) and annual income needed to buy a house ($125,170). Story continues below advertisement 2:21 Business Matters: May 'another sleepy month' for homebuyers. Will a rate cut wake them up? Where did affordability improve? 'While the majority of the cities saw affordability worsen, the biggest change was actually in Hamilton, where affordability saw a massive improvement, with $3,480 less income required to purchase the average home,' Graham said. The average home price in Hamilton was $183,100 — a drop of $7,500 since May. Story continues below advertisement A Hamilton homebuyer would need an annual income of $163,020 to be able to buy a house. With a 10 per cent down payment and a 25-year amortization, their monthly mortgage rate came down to $3,973 a month. This means that a Hamilton mortgage buyer who locked down their rate in May would save $93 a month compared with someone who locked it down in April. The decline in home prices comes amid the U.S. trade war and President Donald Trump's 50 per cent tariffs on foreign steel and aluminum. Hamilton is home to major Canadian steel producers and faces growing concerns about the potential for layoffs and plant closures as a result of the tariffs. While Vancouver saw the second biggest decline in home prices, with a decline of $7,500, it remains Canada's most expensive housing market by far, with an average home in May costing $1,177,100. Vancouverites also need the highest annual income of any city in Canada at $237,550 a year. They would also have to pay the highest monthly mortgage of $5,973 with a 10 per cent down payment, although it dropped $38 from April. In May, Victoria came in as the third most expensive housing market in Canada after Vancouver and Toronto, though average home prices dropped to $892,700, with the average homebuyer needing an annual salary of $183,750. Monthly mortgage costs dropped $38 to $4,530 a month. Story continues below advertisement Affordability also improved in the nation's capital, with the average Ottawa home price dropping to $629,800. An Ottawa resident would save $7 on their mortgage payment if they bought in May ($3,196 a month) and would need an annual household income of $134,020 to be able to buy a house.
Global News
10-06-2025
- Business
- Global News
These real estate markets might be showing signs of life, report suggests
After a slow year for real estate in Canada, with some experts describing the spring housing market as 'dead on arrival,' a new report suggests some markets are showing signs of life. A report by the Royal Bank of Canada released Monday said local real estate boards have indicated that home resales picked up in some Canadian markets in May. This was largely due to de-escalation of parts of the U.S. trade war on Canada, the report said. 'The de-escalation of tariffs has taken centre stage since May, alleviating some of the worst fears about the potential economic fallout even though recent doubling of steel and aluminum tariffs increases risks in some communities. We expect to get a clearer view in the coming months,' RBC economist Robert Hogue said in the report. Penelope Graham, mortgage expert at said tariffs have affected buyer confidence but 'cracks of hope' have begun to emerge. Story continues below advertisement 'From a short-term perspective, sales activity has started to pick up. This corresponds with the cracks of hope emerging in the trade scenario,' she said. Anne-Elise Cugliari Allegritti, spokesperson for Royal LePage, said, 'All in all, I think confidence is returning, at least for some Canadians. That's translated into the housing market a bit but in very, very small spurts.' Graham warned that the volatility has not entirely disappeared. 'There's still plenty of downside risks for the real estate market. If we continue to see declines in the jobs market, home sales will likely stay subdued, unless interest rates are cut dramatically,' she said. 1:58 New realtor trends emerging as housing market cools Which markets are picking up? The RBC report said the real estate markets in Toronto, Ottawa, Calgary, Edmonton, Fraser Valley, Saskatoon and Regina all showed some signs of life. Story continues below advertisement The report said that while U.S. President Donald Trump's trade war had 'paralyzed' the housing market in Toronto, home resales picked up 8.4 per cent from April to May. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy However, home prices in Toronto continue to remain low, down 4.5 per cent compared to this time last year. Calgary and Edmonton, too, saw housing activity pick up. 'The trade war likely caused some buyers to pause in recent months, but its cooling impact on demand in Calgary may have been limited — or even short-lived,' Hogue said, adding that housing activity picked up eight per cent from April to May in Calgary. Quebec markets have been bucking national housing trends, Allegritti said. 'The Quebec markets really stand out this year, in not only Greater Montreal but even in Quebec City and some of the other smaller markets in the province,' she said. Median prices for single-family homes and condo apartments in Montreal were up 8.6 per cent and 4.3 per cent, respectively, in May from a year ago — a touch slower than in April, the RBC report said. It added that in many markets, demand now looks sturdy. 'Prairie markets such as Edmonton, Saskatoon, Regina, and some in Quebec including Quebec City and the Atlantic region like St. John's, have held up so far — albeit not entirely unscathed from trade-induced anxiety,' the report said. Story continues below advertisement The ultra-luxury real estate market is also showing solid demand, international realty firm Sotheby's said. According to Sotheby's, five properties worth over $10 million were sold in the Greater Toronto Area in the first three months of 2025. Slower markets While markets in Toronto and the Fraser Valley are picking up, sellers in other parts of Ontario and British Columbia are struggling. 'It should also be noted that some hard-hit tariffed industries, such as manufacturing, are concentrated in these southern Ontario markets,' Graham said. Sellers in Vancouver are being forced to accept lower bids, the report said, as buyers seem to be in no urgency to buy. 'There remains little urgency for potential buyers to make a move in this still-fraught economic environment. Time is on their side with buying options increasing by the day and prices drifting lower,' the report said. Story continues below advertisement What should buyers and sellers do? Despite the uptick in activity, market conditions remain favorable for anyone looking to buy a home this summer. 'I don't have high expectations for the summer. That's a typically quiet time for the housing market across the country,' Allegritti said. 'We will probably see a pick up in the fall, which is typically a busier part time of the year in the housing market,' she said. Buyers can expect higher inventory, more choice and better ability to bargain for a deal, Graham said. 'There is an opportunity to buy a property at a lower price, and lower interest rates mean buyers will qualify for larger mortgage amounts. Buyers also have more leverage in softer markets and can ask for conditions, such as upon financing or inspection, that further benefit them,' she said. Story continues below advertisement For sellers, however, the market remains tricky. 'It's important to have realistic expectations when listing in a down market and to price your property accordingly. An agent who understands your neighbourhood and comparable sales, and who knows how to market your property effectively, can be an important ally,' Graham said.
Calgary Herald
29-05-2025
- Business
- Calgary Herald
Demand up for mortgage renewals, slower for new homes
Prospective buyers have not been as busy to start 2025 as they were in 2024, at least when it comes to getting a mortgage for a new home. A recent report from found that mortgages for new purchases still remain the lion's share of all activity for inquiries on the online mortgage marketplace. Year to date, ending April 30, new mortgages made up 47 per cent of inquiries. Yet that's a substantial drop from last year when 71 per cent of inquiries were for new home purchases. Article content Article content Article content This year, demand for renewals is rising with 39 per cent of inquiries on year to date for mortgage renewal. Article content Article content Refinancing of mortgage inquiries made up the remaining 12 per cent of activity, up from six per cent in 2024. Article content Interest in variable rate mortgages also is increasing, the report found. It cited that five-year, variable rate mortgage made up eight per cent of inquiries on the website from Jan. 1 to April 30. Article content 'Fewer Canadians are looking to purchase a home amid a rocky economic climate.' Article content Renewals are likely to increase as many Canadians got mortgages in May and June of 2020 during the first wave of demand amid very low interest rates caused by the central bank slashing its overnight rate to spur the economy during the start of the pandemic. Article content
