5 Questions to Ask Your Mortgage Broker in Canada
General Danny Cardoso 10 Oct
General Danny Cardoso 10 Oct
General Danny Cardoso 29 Sep
What’s Changed Since the Pandemic?
Remember those record-low mortgage rates in 2020 and 2021? Some of us locked in 5-year fixed terms under 2%. But if you’ve been waiting for those deals to come back, it might be time to adjust expectations.
Ultra-low interest rates were a response to a global emergency. Central banks, including the Bank of Canada, slashed rates to near zero to keep the economy afloat during COVID-19 lockdowns. Now that the economy has stabilized and inflation is no longer transitory, those emergency measures have ended.
Why Rates Aren’t Expected to Drop That Low Again
According to the latest insights from Canadian Mortgage Trends and other economists, there are a few major reasons we’re unlikely to see sub-2% mortgage rates return:
So, What Does This Mean for Canadian Homeowners?
If you’re renewing your mortgage, shopping for your first home, or exploring investment properties, here’s how you can respond to this new normal:
What If You Bought at Low Rates in 2020?
If you’re facing renewal in 2025 or 2026, your payment could increase significantly. That’s where a strategy comes in. Consider these steps:
Bottom Line
Ultra-low rates served a purpose during the pandemic, but they weren’t built to last. Today’s rate environment is more in line with historical norms, and likely here to stay. The good news? There are still smart ways to borrow, invest, and grow your real estate portfolio.
Need help navigating your mortgage in a higher-rate market?
Let’s talk strategy. Whether you’re renewing, refinancing, or buying for the first time, I’m here to help you find the right solution.
📞 Call me at 416-882-4172
📧 Email: mortgages@dannycardoso.ca
General Danny Cardoso 22 Sep
As your mortgage broker, I believe one of the most important conversations we can have is around why mortgage rates move, what is driving them now, and what might happen over the next year. Below I explain how bond yields and Bank of Canada (BoC) decisions influence what you pay. Then I walk through where things look to be headed through the remainder of 2026, with risks you should watch.
To give you the latest snapshot:
What this means practically:
While nobody can predict with certainty, here is an informed view based on current trends, analyst surveys, and risk factors.
Timeframe | Bank of Canada Policy Rate | Bond Yields (especially 5-year) | Fixed Mortgage Rates (5-year) | Variable Rates & Other Mortgage Types |
Early 2026 (Q1–Q2) | Moderate likelihood of rate cuts, possibly another cut of 25 basis points (from 2.75% to ~2.50%) if inflation continues to settle and there is economic slack. | Yields may drift lower if economic data weakens slightly, but could also remain sticky if global interest rates or inflation expectations stay elevated. Perhaps 5-year yields in the ~2.5%-2.8% range. | Fixed 5-year rates likely to edge downward from current levels but may not drop dramatically—expect something in the ~4.0%-4.5% range for many lenders, depending on spread. | Variable rates will likely respond more quickly to BoC cuts, and borrowers standing with variable or adjustable mortgages may see more relief sooner. |
Mid to Late 2026 (Q3–Q4) | Depending how inflation, housing markets, and global economics evolve, BoC may hold, or possibly cut further—but risk of overshooting remains. | If inflation remains under control and bond markets are confident, yields could stabilize or drift a bit lower. However, if global pressures (e.g. supply shocks, fiscal deficits, trade issues) reemerge, yields could rise again. | Fixed rates might settle lower, perhaps into the ~3.8%-4.2% territory for strong borrowers or special offers; but many borrowers may face spreads that keep rates higher. | Variable rate borrowers likely to enjoy lower costs than fixed in favorable scenarios; but they also face more uncertainty if policy sentiment shifts or if prime spreads move. |
Given all of the above, here are some strategies and considerations:
Putting everything together, my best estimate for mortgage rates (for a typical, well-qualified borrower) by year-end 2026 is:
If you have any questions about what this means for your situation (purchase, renewal, refinance, etc.), I’m happy to walk through different scenarios. Understanding the levers helps make better decisions.
Best regards,
Danny Cardoso
General Danny Cardoso 24 Jun
Is Your Mortgage Pre-Approval Actually Useless? Here’s Why It Might Be
Getting pre-approved for a mortgage should feel like progress. It’s exciting, empowering, and often the first concrete step toward buying a home. But here’s the hard truth: if your mortgage pre-approval wasn’t put together properly—or if your broker or banker skipped key steps—it could be virtually worthless when you need it most.
Let’s break down what a pre-approval really means, what a rate hold does (and doesn’t) do, and why experience matters more than ever in a fast-paced, competitive real estate market.
A mortgage pre-approval generally includes two things:
But here’s the issue: most lenders don’t actually do a full review of your application until it becomes “live”—that is, until you’ve written an offer that’s been accepted. Before that, they’re mostly relying on the information submitted by your broker or banker, not what they’ve verified themselves.
Because lenders are only reviewing estimated numbers initially, a pre-approval is always conditional. If anything doesn’t add up when they finally double-check it, you could lose your approval—and possibly your home.
Here are some common issues that can derail things during a live file review:
This is why it’s so critical to work with an experienced broker who knows how to present your file correctly the first time.
⚠️ Pro tip: If your broker or banker didn’t ask for full income documents, verify your credit, and analyze your debt load, you don’t have a real pre-approval—you have a placeholder.
Rate holds are helpful, no question. They give you a buffer against rising rates while you search for the right property. But even if you’re holding a great rate, that doesn’t guarantee your mortgage will go through when it counts.
Lenders only commit to financing once they’ve verified everything. And even then, there’s another major piece of the puzzle…
This surprises a lot of buyers: just because you are approved, doesn’t mean the home is. Lenders always assess the property you’re buying, because they’re investing in it with you. If something about the home makes them uncomfortable—like:
…they can walk away. This doesn’t mean your homeownership journey is over—but it does mean you need someone in your corner who can help pivot to another lender or solution quickly.
A pre-approval is only as good as the person behind it. An experienced mortgage broker will:
This extra care can be the difference between closing confidently and scrambling under pressure.
Before you start house hunting, ask your mortgage expert:
If the answers are vague or rushed, it might be time for a second opinion.
Have questions about how strong your pre-approval really is? Let’s talk.
Call me at (416)-882-4172 or email mortgages@dannycardoso.ca to make sure your mortgage strategy is solid from day one.
General Danny Cardoso 16 Jun
Many homeowners think the only way to access their home equity is by selling or taking on a mortgage with monthly payments. But what if you could access funds without making a payment?
No-payment mortgage options—like reverse mortgages, alternative lender loans, and private mortgages—allow homeowners to borrow against their property without immediate repayment. Instead, interest is added to the loan balance and paid later when the home is sold or refinanced.
These solutions aren’t just for seniors. Homeowners of all ages have used no-payment mortgage options to:
Whether you’re looking for long-term financial stability or a short-term funding solution, let’s explore how this type of mortgage might work for you.
A common concern with no-payment mortgages is that interest accumulates over time, potentially reducing home equity. But what many don’t realize is that real estate values have historically increased at a rate similar to, or even higher than, mortgage interest rates
The key takeaway? If your home appreciates at the same rate as the interest accrues, the impact on your equity is minimal. In some cases, appreciation even outpaces borrowing costs, leaving you with more home equity despite taking out a loan.
“I was hesitant about taking out a no-payment mortgage while I was building my new home, but it made a huge difference. It gave me the flexibility to finance construction without adding financial stress. By the time I was ready to refinance, my property had already appreciated, so I wasn’t losing equity at all.” – Michael S., 42, Calgary
Many homeowners assume selling is the only way to free up equity, but that can come at a cost:
If you sell too soon, you risk losing out on significant future home value growth. Many homeowners who sold 5–10 years ago now regret their decision, as property values have increased dramatically in most Canadian markets.
For example:
Many Canadian homeowners want to leave their house to their children, but selling early eliminates that possibility. A no-payment mortgage allows you to access home equity now while still holding onto the property.
Selling a home means:
A no-payment mortgage can help bridge financial gaps without forcing a move.
For older Canadians, the rising cost of long-term care is a major financial worry:
Many seniors sell their homes too soon to cover these expenses, when they could have stayed in their home longer by using a no-payment mortgage.
Example:
No-payment mortgages aren’t a one-size-fits-all solution, but they work well for many situations:
✔️ Seniors 55+ who want to stay in their home but need financial flexibility.
✔️ Homeowners building a home who need financing but want to delay payments.
✔️ New families who want a mortgage break while adjusting to parenthood.
✔️ Entrepreneurs who need financial breathing room to launch a business.
✔️ Anyone who can’t qualify for a HELOC or traditional mortgage due to income or credit.
Yes! A no-payment mortgage doesn’t transfer ownership—you remain the homeowner, just like with any other mortgage.
Most reverse mortgages and alternative lender loans come with a no-negative-equity guarantee, meaning you’ll never owe more than your home is worth. Lenders in Canada are conservative and don’t allow borrowing near the full home value.
Yes. Since home values tend to increase over time, many homeowners still have equity left over after repaying the loan.
No! If you qualify for a traditional mortgage or a HELOC, those can sometimes be cheaper alternatives. A no-payment mortgage is best for those who can’t qualify for traditional financing but still want to stay in their home or access their equity.
Absolutely. Many homeowners use no-payment mortgages to update their home, add accessibility features, or increase property value before selling.
Private lender loans can be used by any homeowner with enough equity, often for short-term financing like home construction or a temporary mortgage break.
Every situation is unique. If you’re considering a no-payment mortgage, I can walk you through your options side by side to help you make the best decision.
General Danny Cardoso 3 Mar
Looking back, 2020 was an ideal time to buy a home. Prices were lower, and mortgage rates were around 3%. Those who entered the market then have seen significant gains, with home prices rising more than 30% since early 2020.
But if you didn’t buy, does that mean you’ve missed your chance? Not at all. Real estate always increases in value over the long term, but the key is recognizing opportunities when they appear.
And the next opportunity may be just around the corner.
Here’s how Canadian home prices have changed since 2020:
Prices increased dramatically from 2020 to 2022, followed by a dip in 2023. However, the market has already started recovering, and the Canadian Real Estate Association (CREA) forecasts home prices will rise another 3.3% by 2026.
Many of the buyers who secured homes at historic low interest rates in 2020 and 2021 will soon be facing mortgage renewals at rates that are double or even triple what they originally paid.
This could result in:
Barbara Corcoran (@barbaracorcoran) has seen these cycles play out before. Her advice remains clear:
“Don’t wait to buy real estate. Buy real estate and wait.”
Interest rates have been a key factor in buyer hesitation. But history shows that:
“The perfect time to buy a house? When you can afford the down payment—not when you’re waiting for the ‘perfect’ market.” — Barbara Corcoran
For those who missed the low rates of 2020-2021, 2025 could bring new opportunities, including:
Real estate is a long-term investment, and those who enter the market sooner rather than later tend to benefit the most.
Many buyers in 2020 hesitated, thinking prices would fall. Instead, they increased dramatically. The next opportunity is coming—will you be ready for it?
📞 Call us at 416-882-4172
📩 Email mortgages@dannycardoso.ca
Let’s discuss your options before the next wave of buyers enters the market.
General Danny Cardoso 18 Feb
When choosing a mortgage, many borrowers focus on getting the lowest interest rate. But what happens if life throws a curveball and you need to break your mortgage early? The penalty for breaking a mortgage can be significant—sometimes wiping out any savings you gained from a lower rate. That’s why it’s important to weigh your options carefully:
So, which option is better? It depends on your future plans.
If your plans are uncertain or you anticipate a major life change, a mortgage with a lower penalty could be the better choice. Here are some common situations where flexibility matters more than the lowest rate:
In these cases, breaking your mortgage early with a high penalty could cost you thousands—sometimes more than you saved with a lower rate.
Lenders count on borrowers to keep their mortgage for the full term. If you break your mortgage early, they charge a penalty to recover lost interest. The penalty amount depends on your mortgage type:
The IRD is where penalties can skyrocket. It’s calculated based on the difference between your original mortgage rate and the lender’s current rate for the remaining term. If rates have dropped significantly, this can result in a massive penalty. Not just a few thousand, I’ve seen penalties as high as $30,000 before.
For example:
This is why choosing the right mortgage term and flexible lender is just as important as getting the lowest rate.
If you have long-term stability, a lower rate with a higher penalty might be fine. But if you have any uncertainty in your future plans, it may be worth paying a slightly higher rate in exchange for a lower penalty.
A mortgage is a long-term commitment, but life isn’t always predictable. By choosing the right mortgage structure, you can avoid costly surprises down the road.
Not sure which option makes the most sense for you? Let’s talk. I can help you evaluate your options and choose a mortgage that fits both your short-term and long-term plans.
📞 Call us at 416-882-4172
📧 Email mortgages@dannycardoso.ca
Let’s find the right mortgage for you—one that works for your life today and tomorrow.
General Danny Cardoso 5 Feb
With new U.S. tariffs on Canadian goods already in place—and Canada retaliating with its own tariffs—many Canadians are asking:
These are valid concerns, especially for homebuyers, homeowners renewing their mortgages, and those considering refinancing. While we can’t predict the future with certainty, the Bank of Canada (BoC) is widely expected to cut interest rates in 2025 to help offset economic uncertainty. However, rising inflation and shifting trade policies could complicate how quickly and how much rates actually drop.
Here’s what you need to know about how these tariffs could affect Canada’s economy, mortgage rates, and home affordability in the coming months.
The Bank of Canada has been signaling rate cuts for months, but how low they go—and how quickly—depends on several factors:
Rates are expected to decrease, but we’re in uncertain times. If you’re thinking about buying a home, refinancing, or renewing your mortgage, the best approach is to lock in now with flexibility to adjust later.
Many homebuyers and homeowners are wondering whether they should lock in a mortgage rate now or wait for rates to drop further in 2025. The good news? Most lenders allow you to lower your rate if rates drop before closing.
Here’s why locking in now is a smart move:
If you’re debating between a fixed or variable mortgage, here’s what to consider:
Mortgage Type | Best For | Considerations |
Fixed-Rate Mortgage | Homeowners who want predictability | Offers stability, but you might miss out on savings if rates drop significantly. |
Variable-Rate Mortgage | Borrowers who are comfortable with fluctuating payments | Can save you money if rates decrease, but payments could rise if inflation pressures slow rate cuts. |
If you’re unsure which option is best for you, let’s discuss your financial goals and find the right strategy.
While Canada’s economy is facing major uncertainty, most experts do not expect a full-blown crash. Instead, we’re likely to see:
The best thing you can do right now is stay informed and make proactive mortgage decisions that protect your financial future.
Navigating the mortgage market in uncertain times can be confusing, but you don’t have to do it alone. Whether you’re looking to buy a home, renew your mortgage, or refinance for a better rate, I can help.
📞 Call me at 416-882-4172 or email mortgages@dannycardoso.ca, and let’s create a mortgage strategy that fits your needs.
General Danny Cardoso 16 Jan
With all the uncertainty surrounding Canada’s proposed capital gains tax changes, many property owners are asking, “Do I have to pay capital gains if I sell my house?” or “Should I sell my investment property before the tax rules change?”
In June 2024, the federal government proposed increasing the capital gains inclusion rate—the portion of capital gains that is taxable. This change could significantly impact investors and property owners selling secondary residences, rental properties, or cottages.
But here’s the challenge: the rules haven’t been finalized yet. As Jamie Golombek explains in a recent Financial Post article, “Uncertainty remains as to what the final capital gains tax rules will look like, or even if they will be implemented at all.”
Despite this uncertainty, the Canada Revenue Agency (CRA) has announced it will proceed with collecting taxes based on the proposed higher inclusion rate until a final decision is made. This means that even if you sell now, you could still face a larger tax bill. If the rules are later changed or rejected, the CRA may adjust tax filings—but in the meantime, selling could cost you more than you expect.
The good news? Selling isn’t your only option. If you need access to cash or want to better manage your finances, refinancing or exploring alternative lending solutions could provide the flexibility you need—without triggering a large tax bill.
If you need funds but aren’t sure whether selling is the best choice, here are some flexible ways to access cash while holding onto your property:
It’s important to weigh the pros and cons before making a decision. Here’s a simple comparison of selling versus other financing strategies:
Let’s Build a Strategy That Fits Your Goals
Whether refinancing, working with private lenders, or considering a reverse mortgage, understanding every option is essential. I work closely with your accountant to create a strategy that helps you minimize taxes and achieve both your short- and long-term financial goals.
I offer a clear, side-by-side comparison of all your financing options so you can make the best decision for your financial future.
📞 Call me at 416-882-4172
📧 Email me at mortgages@dannycardoso.ca
Know someone else who’s unsure about what to do? Share this post—many Canadians don’t realize they have options beyond selling.
Let’s talk about what works best for you.
General Danny Cardoso 6 Jan
As a mortgage broker, your role in empowering clients with the right information has never been more crucial. As we step into 2025, the dynamic mortgage landscape offers unique opportunities and challenges. This blog is designed to help you educate and guide your clients, ensuring they make informed financial decisions while maximizing their homeownership potential.
With the start of a new year, your clients are setting goals for financial security, whether they’re first-time buyers, homeowners considering refinancing, or investors expanding their portfolios. Here are key trends and strategies to focus on:
Clients rely on you for clear, actionable advice. Use these key areas to provide value:
Seamless communication builds trust. Use these tips to enhance your client relationships:
Mortgage brokers thrive when working collaboratively with other professionals. Foster partnerships that can enhance the services you offer to clients:
This year, focus on being a trusted advisor for your clients. Whether it’s navigating market uncertainties or maximizing homeownership potential, your guidance can make all the difference.
Let’s make 2025 a year of growth, confidence, and smarter financial decisions for all.