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BoC Opens the Door to Rate Hikes: What It Means for Your Mortgage

  Published September 4, 2026 The Bank of Canada held its policy rate at 2.25% on September 2 — the seventh straight hold — but Governor Tiff Macklem didn't sound like a central banker done for the year. He told reporters the Bank is "prepared to raise interest rates, and if it takes more than one increase, we're prepared to do that," if inflation stays too high. That's a real shift in tone, and it lands right as a wave of Canadians hit their mortgage renewal date. Here's what changed, who's forecasting what, and what it actually means for your payment. Why the Bank Suddenly Sounds Hawkish Canada's annual inflation rate has climbed to around 3% — a full point above the Bank's 2% target — and the Bank is pointing squarely at energy prices. Oil has stayed elevated because of the Iran conflict and disruption near the Strait of Hormuz, pushing gas prices up and dragging headline CPI with it. Core inflation, which strips out food and energy, is still s...
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Canada Expands Mortgage Options for First-Time Homebuyers

 

In a significant move to support aspiring homeowners, the Canadian government has introduced several enhancements to facilitate home purchases. These changes aim to make homeownership more accessible and affordable for first-time buyers. Here are the key updates:

  1. Increased Home Buyers’ Plan Limit:

    • The Home Buyers’ Plan, an existing federal program, allows Canadians to withdraw from their Registered Retirement Savings Plan (RRSP) to buy or build a qualifying home.
    • Budget 2024 proposes to raise the Home Buyers’ Plan limit from $35,000 to $60,000. This means first-time homebuyers can use the tax benefits of RRSP contributions to save up to an additional $25,000 for their downpayment.
    • The enhanced Home Buyers’ Plan complements the Tax-Free First Home Savings Account (FHSA), which allows contributions of up to $8,000 per year (up to a lifetime limit of $40,000) toward the downpayment.

  2. 30-Year Mortgage Amortizations for New Builds:

    • Effective from August 1, 2024, the government will allow 30-year mortgage amortizations for first-time homebuyers purchasing newly built homes.
    • Extending the amortization period for insured mortgages by five years will help more young Canadians afford monthly mortgage payments and encourage new housing supply.

  3. Permanent Amortization Relief:

    • The Canadian Mortgage Charter enhancements include an expectation that permanent amortization relief will be available to protect existing homeowners who meet specific eligibility criteria.
    • Amortization relief allows eligible homeowners to reduce their monthly mortgage payments to a manageable level for as long as needed.

These measures collectively aim to put home ownership back within reach for Canadians, addressing the challenges of saving for downpayments and qualifying for affordable mortgages. With these changes, more individuals can achieve their dream of owning a home and retain control over important life decisions.

Remember, a home is not just a place—it’s a foundation for building memories and securing your future. 

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