Latest Mortgage Stats | 2018

Luisa Hough • May 2, 2018

There have been a number of reports released over the past few weeks that have provided some interesting insight into the state of the housing and mortgage markets.

New reports have touched on everything from 2018 renewal rates, foreign buyer statistics and credit quality to the latest financial crunch facing condo investors.

Here are some of the highlights:

Nearly 50% of Existing Mortgages to Renew in 2018

An estimated 47% of existing mortgages are expected to be coming up for renewal this year, according to a recent CIBC Capital Markets report. That’s up significantly from the 25% to 35% that typically come up for renewal each year.

“Over the past two to three years, as home prices have risen unchecked, you’ve had people trying to get into the housing market unable to afford longer-term mortgages and taken out short-term mortgages,” Ian Pollick, CIBC’s executive director and head of North American Rates Strategy, explained in an interview with Canadian Press. “And in 2018, everything is falling on top of one another.”

With higher interest rates today and stricter mortgage qualification rules in place, many existing homeowners could be in for a rate shock at renewal time.

The stress test on uninsured mortgages introduced as part of the new  B-20 guidelines applies not only to new buyers, but also existing buyers who decide to leave their current lender, perhaps in search of a cheaper rate elsewhere. For the estimated 1-in-6 renewers who won’t able to qualify at the Bank of Canada’s benchmark 5-year posted rate, they will have no choice but to remain with their current lender and likely settle for a less competitive rate.

TD, RBC Hike Fixed Rates

Earlier this week TD Bank raised its 5-year posted rate by 45 bps to 5.59%, the highest it’s been since 2011.

It also raised posted rates for its 2-year, 3-year, 6-year and 7-year terms.

And just today, RBC  confirmed  to BNN that it will also be raising its fixed rates, effective April 30. The bank said it will hike its 5-year and 10-year rates by 20 basis points, its 1-year and 4-year fixed rates by 15 basis points, and that it will lower its variable closed mortgage rate 15 basis points.

One more of the Big 6 banks is expected to make a move in the coming week.

Despite the increases to the posted rates, most bank customers with sound credit are offered rates that are more competitive. The average 5-year fixed rate available from the Big 5 banks in March (to well-qualified borrowers) was 3.39%, according to RateSpy.com.

Foreign-Buyer Home Sales Drop in Toronto

The number of foreign-buyer home purchases in Toronto has fallen to 2.5%, according to Ontario’s Finance Ministry.

That’s down from a peak of 7.5% in May 2017, just after the introduction of the province’s 15% tax on homes sold to international buyers. Across the Greater Golden Horseshoe, which encompasses a larger geographic area around Toronto, foreign buyer sales have fallen to 1.6%, down from 4.7% the month after the new tax was introduced. However, even in areas where the tax does not apply — outside of the Greater Golden Horseshoe — sales to international buyers was also down, from 2.6% of all transactions last spring to 1.7%.

In a statement, Finance Minister Charles Sousa declared the foreign buyers tax a success: “Our data continues to indicate that our Fair Housing Plan measures have helped to calm the housing market.”

The average price of a house in the Greater Toronto Area has fallen about 14%, from $920,000 last spring to $785,000 in March 2018.

Toronto Condo Investors Subsidizing Tenants

Investing in condos is big business in Toronto, as investors accounted for nearly half of all new condo sales in the Greater Toronto Area last year.

But with rising real estate prices, it has become increasingly difficult for those investors to cover their expenses with rent. At least 44% of those who took possession in 2017 and have a mortgage are in a negative cash flow position, according to a CIBC Capital Markets  report.

Of those, 34.5% reported rental income that falls short of their monthly carrying costs by $1,000 each month, while 20.1% say they are short by $500–$1,000 a month.

The report’s authors estimate that for units that were pre-sold and that are due for completion by 2021, rent would need to rise 17% to cover costs based on a 20% down payment and no rise in interest rates. If interest rates were to increase by 100 bps, rent would need to increase by 28%, they wrote.

Vancouver’s Empty-Homes Tax to Generate $30M

Vancouver’s tax on empty homes is expected to generate $30 million in revenue in its first year, Vancouver Mayor Gregor Robertson said this week.

The tax — the first of its kind in Canada — requires homeowners who don’t live in or rent out their properties to pay a 1% tax based on the assessed value of their home.

Robertson announced that $17 million had already been collected from approximately 1,200 owners with properties that were deemed vacant or underutilized for at least six months of the year. That’s just a small percentage of the total 8,500 city properties that officials say fall under the designation, however.

More than 5,000 homeowners have received exemptions from the tax, another 1,000 are currently disputing it and others failed to make any declaration about their properties.

Of the 1,200 property owners who paid the tax, some were billed as much as $250,000 for the 2018 tax year, according to a  Globe and Mail   article.

 

This article was written by Steve Huebl and originally appeared on  Canadian Mortgage Trends  on April 27th 2018, Canadian Mortgage Trends is a publication of Mortgage Professionals Canada. 

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Mortgage Approval 101: GDS & TDS Explained

By Luisa & Candice Mortgages • December 3, 2025
Can You Afford That Mortgage? Let’s Talk About Debt Service Ratios One of the biggest factors lenders look at when deciding whether you qualify for a mortgage is something called your debt service ratios. It’s a financial check-up to make sure you can handle the payments—not just for your new home, but for everything else you owe as well. If you’d rather skip the math and have someone walk through this with you, that’s what I’m here for. But if you like to understand how things work behind the scenes, keep reading. We’re going to break down what these ratios are, how to calculate them, and why they matter when it comes to getting approved. What Are Debt Service Ratios? Debt service ratios measure your ability to manage your financial obligations based on your income. There are two key ratios lenders care about: Gross Debt Service (GDS) This looks at the percentage of your income that would go toward housing expenses only. 2. Total Debt Service (TDS) This includes your housing costs plus all other debt payments—car loans, credit cards, student loans, support payments, etc. How to Calculate GDS and TDS Let’s break down the formulas. GDS Formula: (P + I + T + H + Condo Fees*) ÷ Gross Monthly Income Where: P = Principal I = Interest T = Property Taxes H = Heat Condo fees are usually calculated at 50% of the total amount TDS Formula: (GDS + Monthly Debt Payments) ÷ Gross Monthly Income These ratios tell lenders if your budget is already stretched too thin—or if you’ve got room to safely take on a mortgage. How High Is Too High? Most lenders follow maximum thresholds, especially for insured (high-ratio) mortgages. As of now, those limits are typically: GDS: Max 39% TDS: Max 44% Go above those numbers and your application could be declined, regardless of how confident you feel about your ability to manage the payments. Real-World Example Let’s say you’re earning $90,000 a year, or $7,500 a month. You find a home you love, and the monthly housing costs (mortgage payment, property tax, heat) total $1,700/month. GDS = $1,700 ÷ $7,500 = 22.7% You’re well under the 39% cap—so far, so good. Now factor in your other monthly obligations: Car loan: $300 Child support: $500 Credit card/line of credit payments: $700 Total other debt = $1,500/month Now add that to the $1,700 in housing costs: TDS = $3,200 ÷ $7,500 = 42.7% Uh oh. Even though your GDS looks great, your TDS is just over the 42% limit. That could put your mortgage approval at risk—even if you’re paying similar or higher rent now. What Can You Do? In cases like this, small adjustments can make a big difference: Consolidate or restructure your debts to lower monthly payments Reallocate part of your down payment to reduce high-interest debt Add a co-applicant to increase qualifying income Wait and build savings or credit strength before applying This is where working with an experienced mortgage professional pays off. We can look at your entire financial picture and help you make strategic moves to qualify confidently. Don’t Leave It to Chance Everyone’s situation is different, and debt service ratios aren’t something you want to guess at. The earlier you start the conversation, the more time you’ll have to improve your numbers and boost your chances of approval. If you're wondering how much home you can afford—or want help analyzing your own GDS and TDS—let’s connect. I’d be happy to walk through your numbers and help you build a solid mortgage strategy.

Everything You Should Know Before Buying a Home

By Luisa & Candice Mortgages • November 26, 2025
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.

Don’t Let Collections Derail Your Mortgage Application

By Luisa & Candice Mortgages • November 19, 2025
Can You Get a Mortgage If You Have Collections on Your Credit Report? Short answer? Not easily. Long answer? It depends—and it’s more common (and fixable) than you might think. When it comes to applying for a mortgage, your credit report tells lenders a story. Collections—debts that have been passed to a collection agency because they weren’t paid on time—are big red flags in that story. Regardless of how or why they got there, open collections are going to hurt your chances of getting approved. Let’s break this down. What Exactly Is a Collection? A collection appears on your credit report when a bill goes unpaid for long enough that the lender decides to stop chasing you—and hires a collection agency to do it instead. It doesn’t matter whether it was an unpaid phone bill, a forgotten credit card, or a disputed fine: to a lender, it signals risk. And lenders don’t like risk. Why It Matters to Mortgage Lenders? Lenders use your credit report to gauge how trustworthy you are with borrowed money. If they see you haven’t paid a past debt, especially recently, it suggests you might do the same with a new mortgage—and that’s enough to get your application denied. Even small collections can cause problems. A $32 unpaid utility bill might seem insignificant to you, but to a lender, it’s a red flag waving loudly. But What If I Didn’t Know About the Collection? It happens all the time. You move provinces and miss a final utility charge. Your cell provider sends a bill to an old address. Or maybe the collection is showing in error—credit reports aren’t perfect, and mistakes do happen. Regardless of the reason, the responsibility to resolve it still falls on you. Even if it’s an honest oversight or an error, lenders will expect you to clear it up or prove it’s been paid. And What If I Chose Not to Pay It? Some people intentionally leave certain collections unpaid—maybe they disagree with a charge, or feel a fine is unfair. Here are a few common “moral stand” collections: Disputed phone bills COVID-related fines Traffic tickets Unpaid spousal or child support While you might feel justified, lenders don’t take sides. They’re not interested in why a collection exists—only that it hasn’t been dealt with. And if it’s still active, that could be enough to derail your mortgage application. How Can You Find Out What’s On Your Report? Easy. You can check it yourself through services like Equifax or TransUnion, or you can work with a mortgage advisor to go through a full pre-approval. A pre-approval will quickly uncover any credit issues, including collections—giving you a chance to fix them before you apply for a mortgage. What To Do If You Have Collections Verify: Make sure the collection is accurate. Pay or Dispute: Settle the debt or begin a dispute process if it’s an error. Get Proof: Even if your credit report hasn’t updated yet, documentation showing the debt is paid can be enough for some lenders. Work With a Pro: A mortgage advisor can help you build a strategy and connect you with lenders who offer flexible solutions. Collections are common, but they can absolutely block your path to mortgage financing. Whether you knew about them or not, the best approach is to take action early. If you’d like to find out where you stand—or need help navigating your credit report—I’d be happy to help. Let’s make sure your next mortgage application has the best possible chance of approval.

Luisa & Candice Mortgages 

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