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If you have been watching the news, you may have heard that Ontario recently made a significant move to help homebuyers. As of April 1, 2026, the province is temporarily eliminating the full 13% HST on newly built homes priced up to $1 million - and this applies to all buyers, not just first-time buyers.This is one of the largest tax incentives for homebuyers that Ontario has introduced in a very long time. Here is a plain-language breakdown of what is happening, who qualifies, and how much you could actually save.<h3>Two Programs Working Together</h3>There are now two separate programs stacking on top of each other to reduce or eliminate the HST on new construction in Ontario.1. The Federal First-Time Buyer GST Rebate (Bill C-4)This program eliminates the 5% federal portion of the HST on newly built homes for eligible first-time buyers. It covers homes priced up to $1 million (full rebate) and offers a partial rebate on homes between $1 million and $1.5 million. Purchase agreements must be signed between March 20, 2025 and December 31, 2030. The maximum savings under this program are $50,000.2. Ontario's Expanded HST RebateAnnounced on March 25, 2026, this program eliminates the 8% provincial portion of the HST on new homes for all buyers - including investors purchasing residential rental properties - for a one-year window. To access the full combined 13% relief, your purchase agreement must be signed between April 1, 2026 and March 31, 2027.When both programs are stacked together, eligible buyers can save up to **$130,000** on a single new home purchase.<h3>Who Qualifies?</h3>For Ontario's expanded rebate (April 1, 2026 to March 31, 2027)- All buyers qualify - first-time or not - The home must be newly built or substantially renovated - The home must be used as a primary residence or residential rental property - Your purchase agreement must be signed within the one-year window - For primary residences, construction must begin on or before December 31, 2028 and be substantially completed by December 31, 2031 - For rental properties, construction must be substantially completed by December 31, 2029For the federal First-Time Buyer GST Rebate:- You must be at least 18 years old - You must be a Canadian citizen or permanent resident - You must not have owned and occupied a primary residence in the current calendar year or the four preceding years - The property must be your primary place of residence - Your purchase agreement must have been entered into on or after March 20, 2025If you have previously qualified for programs like the Home Buyers' Plan (HBP) or the First Home Savings Account (FHSA), you will very likely qualify for the federal rebate as well.<h3>How Much Can You Save?</h3>To put this in concrete terms: a first-time buyer purchasing a $900,000 newly built home in Ontario between now and March 2027 could save approximately $117,000 in HST. That is more than many buyers contribute toward a down payment.For non-first-time buyers purchasing during the same window, the full 13% HST is still eliminated through the federal-provincial cost-sharing agreement - meaning you do not need to be a first-time buyer to access significant savings right now.<h3>What About Resale Homes?</h3>These rebates apply exclusively to newly built and substantially renovated homes. Resale properties are not subject to HST, so they are not eligible for either program.Can You Stack These with Other Incentives?Yes. Both rebates are separate from other federal programs, and you can combine them with:- The **Home Buyers' Plan (HBP)** - withdraw up to $60,000 from your RRSP for a home purchase - The **First Home Savings Account (FHSA)** - tax-deductible contributions and tax-free withdrawals for a first home - The **First-Time Home Buyers' Tax Credit** - a $10,000 non-refundable credit worth up to $1,500 in tax savingsHow Is the Rebate Applied?For transactions closing after April 1, 2026, the rebate is designed to be credited directly on your statement of adjustments at closing. Your builder applies it and then claims it from the CRA on your behalf - so you are not waiting for a cheque to arrive after the fact. Your real estate lawyer should confirm the amounts at closing.If you signed a purchase agreement between March 20, 2025 and March 12, 2026 (before Royal Assent on the federal bill), you are still eligible - but you will need to apply to the CRA directly to claim your federal rebate retroactively.What This Means for YouWhether you are a first-time buyer, a move-up buyer, or someone looking at purchasing a rental property, the window to take advantage of the full combined 13% HST elimination is open right now - and it closes on March 31, 2027.Understanding how these programs interact with your overall mortgage and financing strategy matters. The savings are real, but so is the importance of making sure your financing is structured properly before you sign.If you have questions about how this affects your purchasing power or want to understand your options, I am happy to walk you through it. Reach out at <a data-mce-href="http://www.mortgagecall.ca" href="http://www.mortgagecall.ca" target="_blank" rel="noopener" data-mce-selected="inline-boundary">www.MortgageCall.ca</a> or email me directly.---This blog post is for informational purposes only and does not constitute legal, tax, or financial advice. Program eligibility criteria and rebate amounts are subject to change. Please consult a qualified legal or tax professional before entering into any purchase agreement.

Ontario Just Eliminated the HST on New Homes - Here Is What You Need to Know

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The Bank of Canada held its benchmark interest rate steady at 2.25% today, a decision that was widely expected. The Canadian economy showed some weakness heading into 2026 but the biggest wildcard is the war in the Middle East. Rising global oil and gas prices are expected to push inflation back up in the coming months, and disruptions to shipping through the Strait of Hormuz could ripple across commodity markets.In short, the economy is slowing, but inflation pressures from energy prices are pulling in the opposite direction - making it harder for the Bank to cut rates even if growth softens.What This Means for Mortgage Borrowers: Variable rate mortgage holders will see no change to their payments today. Fixed rates, however, are influenced by bond markets - and with global bond yields rising and credit spreads widening, fixed rates could face some upward pressure in the near term.If you are like me, and you like to look at numbers, here is a table summarizing the Prime Rate changes in Canada from 2010 to today:&nbsp;<table border="1" style="border-collapse: collapse; width: 100%; float: left;" data-mce-style="border-collapse: collapse; width: 100%; float: left;" data-mce-selected="1"><tbody><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Effective Date</td><th style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">Prime Rate</th><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">Change</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 18, 2026</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Jan 28, 2026</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Dec 10, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Oct 29, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Sept 17, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 30, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 04, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">April 16th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">0.00%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 12th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Jan 29th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.25%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Dec 11th, 2025</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">October 23, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">Sept 4, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 24, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 5, 2024</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 12, 2023</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">7.20%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 8, 2023</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">January 25, 2023</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">December 8, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">6.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">October 27, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">September 8, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">5.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.75%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 14, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">4.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+1.00%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 2, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">April 14, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.20%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 3, 2022</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 30, 2020</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 17, 2020</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">March 5, 2020</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.50%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">October 25, 2018</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 12, 2018</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">January 18, 2018</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.45%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">September 7, 2017</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.20%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 13, 2017</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.95%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 16, 2015</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.70%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.15%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">January 28, 2015</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.85%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">-0.15%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">September 9, 2010</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">3.00%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">July 21, 2010</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.75%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr><tr style="border-color: #000000;" data-mce-style="border-color: #000000;"><td style="width: 40px; border-color: #000000;" data-mce-style="width: 40px; border-color: #000000;">June 2, 2010</td><td style="width: 25%; border-color: #000000;" data-mce-style="width: 25%; border-color: #000000;">2.50%</td><td style="width: 20px; border-color: #000000;" data-mce-style="width: 20px; border-color: #000000;">+0.25%</td></tr></tbody></table> <h3>Where Does the Bank Go Next?</h3>The next rate announcement is April 29th. If inflation stays elevated due to energy prices, the Bank will likely hold again. If the economy weakens more than expected and inflation stays contained, a cut becomes possible - but the Middle East conflict adds a layer of uncertainty that makes any prediction difficult right now. Borrowers in renewal or purchase conversations should plan for a "hold steady" environment for at least the next one to two rate decisions.Need help understanding how this affects your mortgage? Let’s connect for a quick chat — I’ll walk you through what this decision means for your specific situation.Let’s chat! 📧 mortgages@snezhana.ca | 📲 647-893-2535 🌐 www.MortgageCall.ca

Bank of Canada Holds Rates Again - What It Means for Borrowers

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If you're thinking about buying a newly built home in Canada, there's a significant change you need to know about. As of March 12, 2026, a new law called Bill C-4 officially removes the federal GST on newly built homes for eligible first-time buyers. That means savings of up to $50,000 at closing - and potentially much more if Ontario's matching program becomes law.As someone who works with first-time buyers every day, I want to break this down in plain language so you can understand exactly what this means for you and your wallet - not just at closing, but over the full life of your mortgage.&nbsp; So What Is This Rebate, Exactly? When you buy a newly built home in Canada, you normally pay GST (Goods and Services Tax) on top of the purchase price. For a $700,000 home, that tax alone could add tens of thousands of dollars to your costs.This new rebate removes that tax entirely for eligible first-time buyers purchasing homes up to $1 million. For homes between $1 million and $1.5 million, you still get a partial benefit - it just decreases as the price goes up.The best part? You don't pay the tax upfront and wait for a refund. Your builder credits the savings directly at closing, so you simply pay less on the day you get your keys.&nbsp; How Much Can You Save? <ul><li>Homes up to $1 million: Up to $50,000 in savings</li><li>Homes between $1M and $1.5M: Partial savings on a sliding scale </li></ul>In Ontario, there's also a proposed provincial program that could add up to $80,000 in additional savings on the provincial portion of the tax. Combined, that's up to $130,000 in potential savings for Ontario buyers. The provincial program isn't law yet, but it's worth keeping an eye on.Here's why this matters beyond the number at closing: when you save $50,000 on what you need to borrow, you pay less interest every single month for the life of your mortgage. Over a 25-year mortgage, that $50,000 difference in your loan amount could save you an additional $30,000 to $40,000 in interest. That's your real saving - not just at closing, but over time.&nbsp; Do You Qualify? You likely qualify if all of the following are true:<ul><li>You are at least 18 years old</li><li>You are a Canadian citizen or permanent resident</li><li>You have not owned and lived in a home as your main residence at any point in the last four full calendar years</li><li>You plan to live in this home as your main residence</li><li>You will be the first person to live in the home after it's built or renovated</li><li>The home is newly built or substantially renovated (not a resale)</li></ul>A common question I hear: "I owned a home several years ago - does that disqualify me?" Not necessarily. If more than 4 full calendar years have passed since you last owned and lived in a home, you may still qualify. The same definition applies to other programs like the Home Buyers' Plan and the First Home Savings Account, so if you've used those before, you'll likely qualify here too.&nbsp; What Are the Important Dates? Your purchase agreement must be signed on or after March 20, 2025 and before January 1, 2031. Construction must start before the end of 2030 and be mostly finished before the end of 2035.&nbsp; What If You Already Closed? If you signed your purchase agreement after March 20, 2025 but closed before March 12, 2026, you are still eligible. Since the law wasn't in place yet when you closed, your builder couldn't apply the savings at that time. You'll need to claim the rebate directly through the Canada Revenue Agency. The CRA is releasing updated forms for this, so watch for those and file when they're available.&nbsp; Does This Apply to Condos? Yes - as long as it's a newly built unit (not a resale), condos qualify the same way as houses.Does This Apply to Resale Homes? No. Resale homes are not subject to GST, so this rebate doesn't apply to them.What Else Is in This New Law? Bill C-4 also included two other changes that benefit Canadians broadly.The income tax rate on the lowest tax bracket was reduced from 15% to 14% as of July 1, 2025. For most people, that works out to up to $420 per year in savings, or $840 for a two-income household. Small but helpful if you're still building up your down payment.The federal carbon tax on fuel was also permanently removed, lowering gas prices across most of Canada. That's not directly related to buying a home, but lower everyday costs make a real difference once you're a homeowner managing a mortgage.&nbsp; A Word of Caution The rebate is real and it's meaningful. But I always encourage buyers to think about the full picture, not just the savings headline. Some builders may adjust their pricing knowing buyers have access to this rebate. And a $50,000 saving is never a reason to buy a home that stretches your budget beyond what you're comfortable with.My approach has always been the same: the goal isn't the lowest rate or the biggest incentive - it's the lowest overall cost of owning your home, for the long term.What Should You Do Now? <ul><li>Check whether you meet the eligibility criteria above</li><li>If you're shopping for a new build, ask your builder directly whether the rebate will be applied at closing</li><li>If you closed after March 20, 2025 but before March 12, 2026, watch for the CRA claim forms and file when they're available</li><li>If you're in Ontario, keep an eye on the provincial rebate proposal - the combined savings could be substantial</li><li>Talk to a mortgage broker (like myself) who can show you how this rebate affects your actual monthly payments and total interest costs over time &nbsp; The Bottom Line This is one of the most significant benefits for first-time buyers of new homes that we've seen in years. Up to $50,000 in savings at closing - and potentially much more in Ontario - is money that can go toward your down payment, reduce your mortgage, and lower your long-term costs.</li></ul>Have questions about whether this rebate applies to your situation? I would love to help you work through the numbers. Let's book a call at <a data-mce-href="http://www.MortgageCall.ca" href="http://www.MortgageCall.ca" target="_blank" rel="noopener">www.MortgageCall.ca</a>, or send me an email at <a data-mce-href="mailto:mortgages@snezhana.ca" href="mailto:mortgages@snezhana.ca" target="_blank" rel="noopener">mortgages@snezhana.ca.</a>Snezhana Todorova | Mortgage Broker, BRX Mortgage

New First-Time Buyer GST Rebate: What Bill C-4 Means for You as a Canadian Home Buyer

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One of the most common questions borrowers ask during periods of market movement is this:Why are fixed mortgage rates rising if the Bank of Canada has not announced a rate change?The short answer is simple.Fixed mortgage rates in Canada are primarily influenced by Government of Canada bond yields, not directly by the Bank of Canada’s policy rate.To understand why this matters, it helps to look at how mortgage pricing actually works.<h3>How Fixed Mortgage Rates Are Determined in Canada </h3>Lenders typically price fixed mortgages based on the Government of Canada bond market, particularly the 5-year bond yield.This happens because lenders often use bond markets to manage the risk associated with long-term lending.When a lender offers a 5 year fixed mortgage, they are committing to a specific rate for 5 years. To manage that commitment, they look to government bonds with a similar time horizon.When bond yields move, mortgage pricing often follows.Government of Canada bond yields influence fixed mortgage ratesBank of Canada overnight rate influences Variable mortgage rates. This distinction is one of the most important things borrowers can understand about the mortgage market.<h3>What Causes Bond Yields to Move?</h3>Bond yields change daily based on investor expectations about the economy.Several factors influence these movements.1. Inflation Expectations If investors believe inflation may remain elevated, they typically demand higher yields to compensate for the declining purchasing power of money.Higher yields often lead to higher fixed mortgage rates.&nbsp; 2. Economic Growth Stronger economic data can also push bond yields higher.When the economy grows quickly, investors may expect the Bank of Canada to keep interest rates elevated or delay rate cuts.Those expectations can move bond markets before any official decision is made.&nbsp; 3. Government Bond Supply When governments issue large amounts of debt, bond supply increases. Increased supply can push yields upward as investors demand higher returns to absorb new bonds entering the market.&nbsp; 4. Global Financial Markets Canadian bond markets do not operate in isolation.Movements in U.S. Treasury yields and global economic sentiment can influence Canadian bond yields as well.&nbsp; <h3>Why Fixed Rates Sometimes Move Before Bank of Canada Decisions </h3>Because bond markets reflect expectations, they often move before policy decisions occur.If investors believe the Bank of Canada may keep rates higher for longer, bond yields may rise weeks or months before the central bank makes an official announcement.Mortgage lenders respond to those changes by adjusting fixed mortgage rates.This is why borrowers sometimes see headlines about rising or falling fixed rates even when the Bank of Canada has not taken action.&nbsp; <h3>What the Bank of Canada Actually Controls </h3>The Bank of Canada directly influences the overnight lending rate, which impacts variable-rate mortgages and lines of credit.When the Bank of Canada raises or lowers this policy rate, lenders typically adjust their prime lending rates.Variable mortgages follow those changes more directly.This is why fixed and variable rates sometimes move in different directions.&nbsp; <h3>Why Headlines Can Sometimes Be Misleading </h3>Media coverage often simplifies mortgage rate movements by linking everything to the Bank of Canada.While central bank policy is extremely important, the bond market is often the first place where expectations show up.This is why fixed mortgage rates can move even when no policy announcement has been made.For borrowers, this can feel confusing unless the underlying mechanics are explained.&nbsp; <h3>Practical Considerations for Borrowers</h3>Watch the bigger picture Mortgage rates reflect many moving parts including inflation data, economic reports, and bond market expectations.Avoid reacting to a single headline Short-term movements do not always reflect long-term trends.Focus on the total borrowing strategy Rate is important, but it is not the only factor.As I often tell clients: We do not chase the lowest rate. We build the lowest cost of borrowing.The right mortgage strategy considers flexibility, penalties, future plans, and risk tolerance.&nbsp; <h3>Related FAQs </h3>Do fixed mortgage rates follow the Bank of Canada? Not directly. Fixed rates follow bond yields, while the Bank of Canada primarily influences variable-rate mortgages.&nbsp; Why do lenders raise rates before a Bank of Canada announcement? If bond yields rise in anticipation of inflation or policy changes, lenders may increase fixed mortgage rates before the central bank acts.&nbsp; Where can borrowers track Canadian bond yields? The Bank of Canada publishes Government of Canada bond yield data, which can help borrowers understand broader rate trends.&nbsp; Final Thoughts Mortgage rates can feel unpredictable when viewed only through headlines.But when you understand the relationship between bond markets, central bank policy, and lender pricing, the movements start to make much more sense.If you ever want help understanding how current market conditions may affect your mortgage strategy, you are always welcome to reach out.Book a call at <a data-mce-href="http://www.mortgagecall.ca" href="http://www.mortgagecall.ca" target="_blank" rel="noopener">www.mortgagecall.ca</a> or email <a data-mce-href="mailto:mortgages@snezhana.ca" href="mailto:mortgages@snezhana.ca" target="_blank" rel="noopener" data-mce-selected="inline-boundary">mortgages@snezhana.ca</a>

Why Are Fixed Mortgage Rates Rising If the Bank of Canada Has Not Changed Rates Yet?

If you are thinking about buying a condo in Toronto, you are likely asking the same question many buyers are asking right now:<h3>Should I wait for interest rates to come down, or buy now and refinance later?</h3>Short Answer Waiting for the “perfect” mortgage rate often matters less than securing the right condo at the right price - with a mortgage structure that gives you flexibility later.<h3>The Bigger Picture: Toronto’s Condo Market Today </h3>Toronto’s condo market has changed meaningfully over the past few years. In many segments, condo prices are lower than they were in 2021 and early 2022. At the same time, interest rates remain higher than what buyers became used to over the last decade.This creates a real trade-off:<ul><li>Buy now at a lower purchase price but with higher borrowing costs</li><li>Wait for lower rates but risk higher prices and stronger competition</li></ul>There is no universal right answer. The deciding factor is not timing the market perfectly. It is choosing a mortgage strategy that works with today’s conditions while protecting your future options.<h3>Why Waiting for Rates Can Be Risky </h3>Many buyers delay purchasing because they expect rates to fall. While that feels logical, it comes with trade-offs.Pros of Waiting <ul><li>Potentially lower monthly payments if rates decline</li><li>Emotional comfort for cautious buyers</li><li>More time to save or prepare</li></ul>Cons of Waiting <ul><li>Condo prices may rise before rates meaningfully drop</li><li>Buyer competition tends to return quickly when rates fall</li><li>Missed opportunity to build equity at today’s lower prices</li></ul>In Toronto, price movement often reacts faster than rate changes. By the time rates feel attractive, affordability does not always improve the way buyers expect.<h3>Why Mortgage Structure Matters More Than Market Timing </h3>The mortgage you choose can either limit or protect your future flexibility.A well-structured mortgage may include:<ul><li>Shorter fixed terms that allow adjustments sooner</li><li>Variable or adjustable-rate options with a refinance strategy built in</li><li>Lower penalty exposure if you need to break or restructure later</li></ul>This approach gives buyers control even when rates remain uncertain. The goal is not to predict the future perfectly. It is to avoid locking yourself into a product that restricts your options.<h3>Refinancing Later: What Buyers Need to Understand </h3>Refinancing is not automatic, and it is not free. Whether refinancing makes sense later depends on several factors, including:<ul><li>The property’s value at the time of refinance</li><li>Your income, credit, and overall financial profile</li><li>Existing mortgage penalties and lender rules</li></ul>Many buyers assume refinancing will always be easy if rates drop. That assumption can be costly. Planning for refinance flexibility upfront is far more effective than reacting later.<h3>Common Condo Buyer Mistakes I See </h3>These issues show up often, especially in uncertain markets:<ul><li>Choosing the lowest advertised rate without understanding penalties</li><li>Locking into long mortgage terms without exit flexibility</li><li>Assuming future refinancing will be simple and guaranteed</li></ul>As I always like to say - we do not chase the lowest rate. We build the lowest total cost of borrowing.A Practical Checklist Before You Buy Before committing to a condo purchase, consider the following:<ul><li>Understand how mortgage break penalties are calculated</li><li>Review refinance options before signing anything</li><li>Stress-test your payments for future rate changes</li><li>Align your mortgage term with your life and income plans</li></ul>Frequently Asked Questions Is refinancing always worth it if rates drop? Not always. Penalties, qualification rules, and property value all matter.Are condos riskier right now? Risk depends on the building, location, and how long you plan to hold the property.Should first-time buyers wait? That depends on stability, long-term goals, and mortgage structure, not headlines.<h3>Final Thoughts </h3>If you are weighing your options and want clarity rather than pressure, I am always happy to walk through real scenarios based on your numbers and goals.Book a call at <a data-mce-href="http://www.mortgagecall.ca" href="http://www.mortgagecall.ca" data-mce-selected="inline-boundary" target="_blank" rel="noopener">www.mortgagecall.ca</a> Or email <a data-mce-href="mailto:mortgages@snezhana.ca" href="mailto:mortgages@snezhana.ca" target="_blank" rel="noopener">mortgages@snezhana.ca</a>Buying a condo is not about guessing the market. It is about making informed decisions that keep your future flexible.

Should You Wait to Buy a Condo in Toronto or Buy Now and Refinance Later?

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Short answer: Yes, refinancing can still make sense even if you already have a low rate, depending on your goals, cash flow needs, and overall cost of borrowing.<h3>Deeper explanation </h3>Many Canadian borrowers assume refinancing is only worthwhile when rates drop significantly below their current rate. While rate savings can be one reason to refinance, it is not the only one - and often not the most important one.Refinancing allows you to restructure your mortgage. That structure affects how interest is paid over time, how much flexibility you have, and how your mortgage supports the rest of your financial life.Below are some of the most common reasons refinancing can still make sense with a low rate.<h3>Accessing home equity </h3>If your property has increased in value or you have paid down your mortgage, refinancing can allow you to access equity.Common uses include:<ul><li>Renovations or home improvements</li><li>Debt consolidation</li><li>Investing or business opportunities</li><li>Large planned expenses</li></ul>Compared to unsecured debt, mortgage-backed borrowing often comes with lower interest costs and longer repayment flexibility.&nbsp; <h3>Improving monthly cash flow </h3>Even without a major rate drop, refinancing can sometimes reduce monthly payments by:<ul><li>Extending the amortization</li><li>Consolidating higher-interest debts into the mortgage</li><li>Switching from variable payment volatility to fixed payment stability</li></ul>Improved cash flow can create breathing room, especially during periods of rising household expenses.<h3>Restructuring amortization or term length </h3>Your original mortgage structure may no longer match your current stage of life.Refinancing can help:<ul><li>Lengthen amortization to manage monthly affordability</li><li>Adjust term length to balance flexibility and certainty</li></ul>This is where cost of borrowing matters more than the headline rate.<h3>Pros and cons of refinancing with a low rate </h3>Pros:<ul><li>Access to lower-cost capital</li><li>Improved cash flow or flexibility</li><li>Opportunity to consolidate debt</li><li>Better alignment with current goals </li></ul>Cons<ul><li>Prepayment penalties</li><li>Legal and appraisal costs</li><li>Potential increase in total interest if amortization is extended</li></ul>A refinance should always be evaluated net of these costs.<h3>What borrowers often overlook </h3>Many borrowers focus on the interest rate alone and overlook:<ul><li>Penalties and break costs</li><li>The impact of amortization resets</li><li>How long they plan to keep the mortgage</li><li>Flexibility features like prepayment options</li></ul>This is why we do not chase the lowest rate. We build the lowest cost of borrowing.<h3>FAQs</h3>Does refinancing reset my mortgage? Yes, refinancing replaces your existing mortgage with a new one, including new terms and conditions.Will refinancing hurt my credit? There is usually a small, temporary impact from a credit check, but it is typically minimal.Can I refinance without increasing my mortgage balance? Yes. Some refinances are purely structural and do not involve taking out additional funds.<h3>Practical checklist before refinancing </h3><ul><li>Review your current penalty</li><li>Clarify your short- and long-term goals</li><li>Compare total interest costs, not just rates - I can help with that!</li><li>Consider how long you plan to keep the mortgage</li></ul>Support beats stress. Every time.If you want help evaluating whether refinancing still makes sense for your situation, you can book a call at <a data-mce-href="https://calendar.app.google/Mc8vZwwwSf2ZXhfu6" href="https://calendar.app.google/Mc8vZwwwSf2ZXhfu6" target="_blank" rel="noopener">www.mortgagecall.ca</a> or email <a data-mce-href="mailto:mortgages@snezhana.ca" href="mailto:mortgages@snezhana.ca" target="_blank" rel="noopener" data-mce-selected="inline-boundary">mortgages@snezhana.ca</a>.

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