Is Now a Good Time to Buy?

Katherine Martin • September 2, 2016

If you’re getting tired of all the media headlines claiming impending housing market and economic doom and gloom, you’re not alone. It seems every time you browse the news another US economist is predicting terrible things for Canada. Articles like this one , claiming an ‘extreme bubble’ is just around the corner… note, not just a bubble… but an extreme bubble. 

The truth is, mortgage rates have never been lower and while low interest rates are somewhat blamed for increased house prices, low interest rates are good for borrowers who are looking to get into the market. So despite what the media would have us believe, now (historically speaking) is actually a pretty good time to buy a property.

Understanding that you can’t control the future, and of course past performance doesn’t indicate future direction, if you isolate the actual cost of borrowing money, you might be surprised at how cheap money is right now. Obviously buying a property is a personal decision, the time has to be right for you, and your finances have to be in order, but if the sensational media headlines are causing you to second guess yourself or the market, let’s have a look at the cost of borrowing today compared to previous years.

Fixed Interest Rates

Fixed interest rates are at an all time low. Seriously, it has never been cheaper to borrow fixed money in Canada. Here is a handy chart that provides a visual to that effect, showcasing the historical posted 5 year mortgage rates from 1973 to today. 

Here are a couple points to note: 

  • In July of 1981, fixed rates were at 21.75%. 
  • 21.75% is a higher rate of interest than a lot of credit cards. Yikes!
  • In July of 2016, rates were at 4.74%.
  • 4.74% is a posted rate, a lot of broker channel lenders have discounted rates in the low 2% range.

Prime Rate

So, fixed rates are a little too permanent for you? No problems, the prime rate (the rate that sets the baseline for a variable rate mortgage) can be found hovering below half of the Canadian historical average. So here is another handy chart that provides a visual going back to 1935 up until today. 

A couple points to note:

  • The 80s were not only bad for music and fashion, but a bad time to borrow money as well.
  • Although prime is 2.7%, lenders offer a variable component discount as well tied to the prime.
  • Discounts in today’s lending landscape are around half a percentage point.
  • The 40s, 50s, and 60s, were pretty steady, who knows, we might just be in for some more of that! 

Let’s Talk

So regardless if you prefer the fixed or variable, as you can see, it’s never been cheaper to borrow money. Period. Please don’t let the media scare you into thinking the market is about to implode, their job is to sell advertising not bring a balanced perspective to your newsfeed. Affordability is a personal thing and shouldn’t be dictated by a market you can’t control. 

If you would like to figure out what you can afford, and go over your financial situation to prepare for getting a mortgage, I’d love to help.  Please contact me anytime, I would love to work with you. 

 

Katherine Martin


Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842


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Down Payment Options for Canadian Homebuyers

By Katherine Martin • February 25, 2026
For most Canadians, the down payment is the biggest hurdle to homeownership. A down payment is the initial amount you contribute toward your property purchase, while the lender covers the rest through a mortgage. By law, Canadian lenders can only finance up to 95% of a property’s value, which means you’ll need at least 5% down to qualify. If you’re putting down less than 20%, your mortgage must be insured through one of Canada’s three default insurance providers— CMHC, Sagen (formerly Genworth), or Canada Guaranty . This insurance comes at a cost, but it can be rolled into your mortgage amount. The less you put down, the higher the premium. Since saving a down payment can feel overwhelming, it helps to know the different sources you can draw from. Here are the most common options available to Canadian homebuyers: 1. Savings & Personal Resources The most straightforward source is your own savings. Lenders will ask to see a 90-day history of the funds in your account. Any large deposits outside of regular payroll must be explained with documentation—such as the sale of a vehicle or a transfer from an investment account. This requirement isn’t just red tape; it’s part of Canada’s anti-money laundering rules. 2. Proceeds from the Sale of a Property If you’ve recently sold another home, you can use the proceeds as a down payment on your new purchase. Proof of the sale—such as the final statement of adjustments from your lawyer—will be required. 3. RRSP Home Buyers’ Plan (HBP) First-time buyers can withdraw up to $35,000 each (or $70,000 as a couple) from their RRSPs to put toward a down payment under the federal Home Buyers’ Plan . The funds are withdrawn tax-free, but they must be repaid over a 15-year period. This is a popular option for buyers who have been steadily contributing to their retirement savings. 4. Gifted Down Payment With today’s housing prices, many buyers turn to family for help. A parent or immediate family member can provide a gift that makes up part—or even all—of the required down payment. The lender will require a signed gift letter confirming that the money is a true gift (with no repayment expected) and proof that the funds have been deposited into your account. 5. Borrowed Down Payment In some cases, you may be able to borrow your down payment. This option is usually available only if you have strong credit and sufficient income. The payments on the borrowed funds are factored into your debt service ratios, so affordability is key. Lenders typically use 3% of the outstanding balance when calculating the additional payment. The Bottom Line A down payment doesn’t have to come from just one source—it can be a combination of savings, gifted funds, RRSPs, or other resources. What matters most is being able to show where the money came from and that it meets lender requirements. If you’d like to explore your options or learn how much you might qualify for, it’s never too early to start the conversation. Connect with us today—we’d be happy to help you create a plan and take the first steps toward homeownership.

Stress-Testing Your Mortgage Affordability: Why It Matters

By Katherine Martin • February 18, 2026
Buying a home is one of the biggest financial commitments you’ll ever make. That’s why lenders want to be sure you can handle your mortgage payments—not just today, but also if interest rates rise in the future. This is where the mortgage stress test comes in. Many Canadians hear the term but aren’t entirely sure what it means or how it affects them. Let’s break it down in plain language. What Is the Mortgage Stress Test? The stress test is a rule introduced by the federal government that requires all mortgage applicants to qualify at a higher rate than the one they’ll actually pay. Currently, you must qualify at the greater of your contract rate + 2% or the benchmark qualifying rate (set by the Office of the Superintendent of Financial Institutions). For example: If your lender offers you a 5-year fixed mortgage at 5.25%, you must show you could still afford the payments at 7.25% . Even if rates don’t rise that high, the stress test ensures you won’t be overextended if they do. Why Does It Matter? The stress test protects both borrowers and lenders by: Preventing over-borrowing : It ensures you don’t take on more debt than you can realistically handle. Preparing for rate hikes : With interest rates fluctuating, it’s a safeguard against sudden increases. Strengthening financial stability : It lowers the risk of defaults, protecting the housing market as a whole. While it can sometimes feel like a barrier—reducing the amount you qualify for—it’s ultimately designed to keep you from becoming “house poor.” How Does It Impact Buyers? The stress test can significantly affect your homebuying budget. For example, without it, you might qualify for a $600,000 mortgage, but with the stress test applied, you may only qualify for $500,000. That doesn’t mean your dream of homeownership is out of reach—it just means you may need to adjust expectations or explore other strategies, such as: Increasing your down payment Paying down existing debts Considering alternative lenders who may have different qualification standards Why Work With a Mortgage Professional? Every lender applies the stress test, but not every lender views your application the same way. An independent mortgage professional can: Shop multiple lenders to find the best fit Run affordability scenarios at different rates Help you understand how much house you can truly afford—without stretching your finances too thin The Bottom Line The mortgage stress test isn’t meant to stop you from buying a home—it’s there to protect you from financial strain down the road. By understanding how it works and planning ahead, you can make smarter choices and buy with confidence. If you’re thinking about purchasing a home, refinancing, or simply want to know how the stress test affects your options, connect with us today. We’ll help you stress-test your budget and find the mortgage solution that works best for you.
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