Hey there, fellow homeowners and realtors! 🏡

Recently, the Bank of Canada announced that it will hold its policy rate at 2¾%. This decision comes after a recent reduction in the interest rate by 25 basis points at the last meeting, driven by the uncertainty created by the ongoing trade war. The major shift in direction of US trade policy and the unpredictability of tariffs have increased uncertainty, diminished prospects for economic growth, and raised inflation expectations. This pervasive uncertainty makes it unusually challenging to project GDP growth and inflation in Canada and globally.

Impact of the Trade War on Canada

The trade war initiated by the United States has had significant repercussions on the Canadian economy. The tariffs imposed by the U.S. have led to increased uncertainty and volatility in various sectors, including manufacturing, agriculture, and consumer goods. Canadian industries have been quick to react to the trade war, with some sectors experiencing reduced demand for their products in the U.S. market. The Bank of Montreal has forecasted that if the announced tariffs remain in place for one year, the Canadian economy could face the risk of a modest recession.

One of the immediate impacts of the trade war has been the increase in prices of consumer goods in Canada. The tariffs have disrupted supply chains, leading to higher costs for imported goods. For example, the price of food purchased from stores has seen a year-over-year increase, with fresh produce that is taxed experiencing the most immediate price hikes. The Canadian Federation of Independent Grocers has reported that small grocers are passing on these increased costs to consumers due to their slim profit margins.

In response to the U.S. tariffs, Canada has imposed counter-tariffs on $30 billion worth of American goods, including food products such as orange juice, berries, nuts, and shrimp. These counter-tariffs are starting to show up in the supply chain, further contributing to the increase in prices. The depreciation of the Canadian dollar has also exacerbated the pain for Canadian businesses and consumers, as it mitigates the prices of exports for U.S. importers but increases the cost of imported goods.

The trade war has also impacted the mortgage industry in Canada. When the policy rate decreases, variable-rate mortgage interest rates follow suit. The uncertainty created by the trade war has led the Bank of Canada to maintain its policy rate at 2¾%, with the possibility of further reductions if the economic outlook worsens. This creates an opportunity for homeowners to refinance their mortgages at lower rates, taking advantage of the current market instability.

Overall, the trade war has created a challenging economic environment for Canada, with increased prices, disrupted supply chains, and heightened uncertainty. However, it also presents a unique opportunity for homeowners to refinance their mortgages and secure better rates due to the current low policy rate.

Impact of the Trade War on Interest Rate Decisions

The trade war has created a ripple effect across the global economy, and Canada is no exception. The heightened trade tensions and tariffs imposed by the United States have slowed the pace of economic activity and increased inflationary pressures in Canada. The economic outlook continues to be subject to more-than-usual uncertainty because of the rapidly evolving policy landscape. This uncertainty has led the Bank of Canada to maintain its policy rate at 2¾%, with the Bank Rate at 3% and the deposit rate at 2.70%.

What This Means for the Short-Term Future of Interest Rate Decisions

Given the current economic climate, the Bank of Canada is likely to continue monitoring the situation closely. The unpredictability of US trade policy and the ongoing trade war will play a significant role in shaping future interest rate decisions. While the Bank of Canada has paused its rate cuts for now, the possibility of further reductions remains if the economic outlook worsens. This creates a unique opportunity for homeowners and realtors to take advantage of the current low rates and market instability.

Opportunity to Refinance at Lower Rates

The current market instability presents a golden opportunity for homeowners to refinance their mortgages at lower rates. With the policy rate held at 2¾%, now is the perfect time to secure a better rate, unlock equity, or restructure your finances to save thousands. Whether you're looking to reduce monthly payments, access funds for investments or renovations, or consolidate debt—this is your moment. 💰

Economist Perspective:

According to David Payne, an economist at Kiplinger, "The Federal Reserve may have to cut short-term rates by at least a quarter-point at its next meeting if it looks like the economy is headed in the wrong direction. Investors are expecting it to cut short-term rates between three and four times this year".

Why Mortgage Brokers Like Stuart Lessels Are Your Best Bet

As your friendly neighbourhood mortgage broker, Stuart Lessels is here to help you navigate these uncertain waters. With over a decade of experience and a rich family history in the real estate industry, Stuart excels in finding the right mortgage solutions for even the most challenging financing situations. His approachable and slightly cheeky tone makes mortgage education engaging, ensuring clients remember him as their friendly “Go To” expert.

Stuart's goal is to not only secure the best mortgage fit for his clients but also to provide valuable knowledge, all while bringing a smile to their faces. He works with over 80 lenders at no cost to you, ensuring you get the best deal possible. Whether the best deal for you is with your current bank or another lender, Stuart will do the legwork, compare the options, and ensure you get the best mortgage fit for your individual needs.

Smart Homeowners have Already Done This:

This kind of opportunity doesn’t come around often. Don’t let it pass you by. If you have any questions or need mortgage advice, don't hesitate to reach out to Stuart Lessels. He's here to help all across Ontario. Let's make sure you get the best deal possible and bring a smile to your face in the process.

Stay healthy, stay smart, and remember—Stuart is always here to have your back.

Best regards,

Stuart Lessels

Your “Go To” Mortgage Broker for Georgian Bay and beyond

📧 stuart@housenow.ca

📞 (705) 445-1234

P.S. Feel free to share this article with your clients and colleagues. It's always good to stay informed and be prepared for what's coming next in the market! 😊

Hey there!

If you got your mortgage five years ago, your term is likely up very shortly—and your home has probably increased in value. That’s built-in equity you can leverage right now. 🏡

Reflecting on Interest Rates During COVID

Five years ago, during the height of the COVID-19 pandemic, interest rates were at historic lows. The Bank of Canada slashed rates to stimulate the economy, making borrowing cheaper and more accessible. Many homeowners took advantage of these low rates to secure favorable mortgage terms. Fast forward to today, and the landscape has changed significantly.

Changes in the World Since COVID

The world has undergone substantial changes since the pandemic. We've seen shifts in global economic dynamics, supply chain disruptions, and evolving work-from-home trends. These changes have impacted the real estate market, with increased demand for suburban homes and properties with more space. The housing market has experienced fluctuations, but overall, home values have risen, creating opportunities for homeowners to tap into their equity.

Impacts of US Government Policies  (yeah, that really means Mr Trump’s policies!)

US government policies have also played a role in shaping the current economic environment. Trade conflicts and tariff wars have created uncertainty in global markets. The US government's approach to tariffs and trade policies has led to volatility, affecting various industries, including real estate. These policies have influenced interest rates and borrowing conditions, making it essential for homeowners to stay informed and adapt to changing circumstances.

Factors Today

Today, we face a unique set of factors that can impact your mortgage decisions. Global economic shifts and tariff wars are pushing governments to consider lowering interest rates to stimulate the housing market. The uncertainty right now, is your opportunity!  This creates an usually rare window to secure a better rate, unlock equity, or restructure your finances to save thousands. THIS WILL NOT LAST LONG! Whether you’re looking to reduce monthly payments, access funds for investments or renovations, or consolidate debt—this is your moment. 💰

Current Interest Rates in Canada

As of now, the average annual percentage rates (APR) for mortgages in Canada are as follows:

·5-year fixed mortgage rate: The average APR is 3.74%.

·5-year variable mortgage rate: The average APR is 3.95%.

·Prime rate: The current prime rate is 4.95%.

These rates are subject to change, so it's crucial to stay updated and consult with a mortgage broker to find the best options available.

Recent Market Trends

The real estate market has been experiencing some interesting trends lately:

·Increased Demand for Suburban Homes: With more people working from home, there's been a noticeable shift towards suburban living. Homebuyers are seeking larger properties with more space for home offices and outdoor areas.

·Rising Home Prices: Despite economic uncertainties, home prices have continued to rise in many areas. This is partly due to low inventory levels and high demand, creating a competitive market for buyers.

·Low Inventory Levels: The supply of homes for sale remains low, which has contributed to the rising prices. Sellers are in a strong position, but buyers may face challenges finding suitable properties.

·Interest Rate Fluctuations: Interest rates have been fluctuating, influenced by global economic conditions and government policies. It's essential for homeowners and buyers to stay informed about these changes to make the best financial decisions.

·Increased Focus on Sustainability: There is a growing interest in sustainable and energy-efficient homes. Buyers are looking for properties with eco-friendly features, such as solar panels and energy-efficient appliances.

Canadian Housing Market Trends

The Canadian housing market has shown some notable trends recently:

·Average Home Prices: Canada's national average home price declined to $668,097 in February 2025, marking a 0.3% decrease from January 2025 and a 3.3% decrease compared to February 2024.

·Sales Activity: Seasonally adjusted sales activity totaled 36,997 transactions in February 2025, showing a significant decline of 10% from January 2025 and a 4% decrease year-over-year.

·Benchmark Home Price: The national benchmark home price, which measures the price of a "typical" home, was $713,700, showing a 0.6% increase month-over-month but a 0.9% decrease year-over-year.

·Regional Variations: Home prices and market trends vary significantly across different provinces. For example, British Columbia saw a 1.6% monthly increase but a 2.4% annual decrease in average home prices, while Ontario experienced a 1.7% monthly increase but a 2.9% annual decrease.

Tips for Homeowners Looking to Refinance

Refinancing your mortgage can be a smart financial move, but it's essential to approach it with careful consideration. Here are some tips to help you navigate the refinancing process:

·Assess Your Financial Goals: Determine what you want to achieve with refinancing. Are you looking to lower your monthly payments, shorten your loan term, or access equity for other financial needs? Understanding your goals will guide your decisions.

·Check Your Credit Score: A higher credit score can help you secure better interest rates. Review your credit report and address any discrepancies or issues before applying for refinancing.

·Compare Lenders: Don't settle for the first offer you receive. Shop around and compare rates from multiple lenders to ensure you're getting the best deal. A mortgage broker can help you access a wide range of options.

·Understand the Costs: Refinancing comes with costs, such as closing fees, appraisal fees, and other charges. Make sure you understand these costs and factor them into your decision-making process.

·Consider the Timing: Interest rates fluctuate, so timing can impact the terms you receive. Keep an eye on market trends and consult with a mortgage broker to determine the best time to refinance.

·Evaluate Loan Terms: Look beyond the interest rate and consider the overall terms of the loan. A lower rate might come with higher fees or less favorable terms, so evaluate the complete package.

·Prepare Documentation: Gather all necessary documentation, such as income statements, tax returns, and bank statements. Having these documents ready will streamline the application process.

Benefits of Refinancing

Refinancing your mortgage can offer several advantages, making it a smart financial move for many homeowners. Here are some key benefits:

·Lower Interest Rates: One of the primary reasons homeowners choose to refinance is to secure a lower interest rate. By refinancing at a lower rate, you can reduce your monthly mortgage payments, saving you money over the life of the loan. This can free up funds for other financial goals or simply provide more breathing room in your budget.

·Shorten Loan Term: Refinancing can also allow you to shorten the term of your loan. For example, if you currently have a 30-year mortgage, you might refinance to a 15-year mortgage. While this may increase your monthly payments, it can significantly reduce the total interest paid over the life of the loan and help you build equity faster.

·Access Home Equity: If your home has increased in value, refinancing can provide access to your home equity. This can be particularly useful for funding major expenses such as home renovations, education costs, or debt consolidation. By tapping into your equity, you can leverage the value of your home to achieve your financial goals.

·Consolidate Debt: Refinancing can be an effective way to consolidate high-interest debt, such as credit card balances or personal loans. By rolling these debts into your mortgage, you can benefit from a lower interest rate and simplify your monthly payments. This can help you manage your finances more efficiently and reduce the overall cost of your debt.

·Improve Loan Terms: Refinancing can also help you improve the terms of your loan. For example, you might switch from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, providing more stability and predictability in your monthly payments. Alternatively, you might remove private mortgage insurance (PMI) if your home's value has increased and you now have sufficient equity.

·Increase Cash Flow: By lowering your monthly mortgage payments through refinancing, you can increase your cash flow. This extra money can be used for various purposes, such as investing, saving for retirement, or covering everyday expenses. Improved cash flow can provide greater financial flexibility and peace of mind.

Recent Statistics on Refinancing Trends

Recent trends in mortgage refinancing activity show some interesting developments:

·Payment Savings: Borrowers who refinanced their first-lien conventional mortgages in 2021 lowered their mortgage rates on average by 1.15 percentage points. This resulted in an average annual savings of about $2,700 in mortgage payments (principal and interest).

·Equity Extraction: Many borrowers took advantage of increased home equity by refinancing their properties, reducing their monthly payments and extracting equity through cash-out refinances1.

·Decline in Refinancing Activity: In 2023, refinancing of single-family homes fell by 64% compared to 2022. Rising interest rates contributed to higher monthly mortgage payments, with the average monthly payment for a conventional conforming 30-year fixed-rate mortgage rising from $2,045 in December 2022 to $2,295 in December 2023.

·Discount Points: More than half of all borrowers paid discount points in 2023, with the median discount points paid for refinance loans being about $3,900.

How I Can Help Right Now

As your friendly neighborhood mortgage broker, I'm here to help you navigate these uncertain waters. With over a decade of experience and a rich family history in the real estate industry, I understand the complexities of the mortgage market. I can assist you in finding the best mortgage fit for your individual needs, whether you're renewing your mortgage or looking for a new one.

Remember, the best deal for you might be with your current bank, or it might not. That's where I come in. I'll do the legwork, compare the options, and ensure you get the best mortgage fit for your individual needs. Think of me as your personal mortgage detective, always on the lookout for the best deals.

📞 Let's chat for 15 minutes and map out your best move.

Call to Action

This kind of opportunity doesn’t come around often. Don’t let it pass you by. If you have any questions or need mortgage advice, don't hesitate to reach out. I'm here to help all across Ontario.

Let's make sure you get the best deal possible and bring a smile to your face in the process.

Stay healthy, stay smart, and remember—I'm always here to have your back.

Best regards,

Stuart Lessels

Your “Go To” Mortgage Broker for Georgian Bay and beyond

📧 stuart@housenow.ca

 📞 (705) 445-1234

P.S. Feel free to share this article with your clients and colleagues. It's always good to stay informed and be prepared for what's coming next in the market! 😊

Hey everyone,

I hope you’re all doing well. I wanted to share an update on the wild story I shared with you a few weeks ago — about how my smartwatch saved my life. Sounds crazy right? But the watch kept telling me that my heart was in overdrive and after several notifications (like most men, I tended to ignore the first several dozen) I finally went to the ER... Turns out my heart had been in atrial fibrillation for a while and was running on empty. That tiny alert on my wrist was the only warning I got. Yikes! And, in true Monty Python style, I joked with my kids, “I’m not dead yet!” 

The reality was - it was a close call. REALLY close actually!   How close was it?   Well, the cardiologist compared my test results from when I was in emergency, to when I had follow up testing a few weeks later.....The cardiologist told me that my heart had been in overdrive for too long, and the results show that it was very close to giving up!   YIKES!

I had NO warning signs, no symptoms, just my new watch, which I assumed was defective or something, lol, OOPS!

After that, I finally took this heart thing seriously. And, thanks to our amazing healthcare team, I'm getting the help I needed. (I’m still navigating a heart breaking divorce - let's call that my "bonus stress" - but that’s a tale for another day!)

Now, here’s where things get interesting. While lying on a stretcher in emergency, staring at the ceiling (because really, what else was I going to do?) it dawned on me that just like your smartwatch keeps an eye on your health, you need something (like your mortgage pro) to keep an eye on your mortgage. Why?

Because while you might think your bank’s renewal offer is just fine, you have to ask - "Are you really getting the best deal for you and your family? How would you know?"

With over a decade as a mortgage broker in Collingwood—and a family steeped in real estate—I know what to look for. More importantly, I have access to virtually EVERY bank and lender…..and that includes several that regular homeowners CANNOT access. What does this mean for you? It means you get the mortgage that truly best fits your needs (not the bank's). Think of me as a super diagnostic smartwatch for your finances.

But, you have to pay attention to the signals—whether from your wrist or your wallet—and don’t wait until it’s too late like I almost did!

Stay sharp, stay healthy, and let’s make sure everything in your life is working the way it should.

Best regards,

Stuart "I'm Not Dead Yet" Lessels

Your “Go To” Mortgage Broker for Georgian Bay and beyond

📧 stuart@housenow.ca

📞 (705) 445-1234