The Big Banks are your MOST expensive mortgage option.

Sabeena Bubber • March 12, 2019

If you qualify for mortgage financing at any of Canada’s big six banks, chances are you will be eligible somewhere else as well. And you could be paying A LOT less interest and have a more flexible mortgage.

Recent analysis shows that in 2018 having a mortgage (dealing directly with) RBC, TD, BMO, Scotiabank, CIBC, or the National Bank of Canada was consistently the most expensive option for Canadians. Even the lowest rates of the big six were always costlier than the lowest rates from smaller lenders.

For example, when RBC lowered its 5-year fixed rate to 3.74%, consumers on that rate would pay $2,560 per month on a $500,000 mortgage (25-year amortization with 20% down to avoid paying CMHC insurance). The best available rate at a monoline lender at the same time was 3.23%, saving borrowers $134 per month (with a payment of $2,426). When you roll this savings out over the lifetime of the mortgage, you’re looking at a savings of $40,200.

But let’s not just compare mortgages by their rate, (which is like comparing cars based on their colour alone). When you look at all the mortgage features and compare the big 6 banks to mono-line lenders, you find that the smaller lenders have the edge here as well.

Without getting too heavy into the details, understanding the cost to break your mortgage is the single most important decision you should make when considering a mortgage. Your mortgage will either have a three months interest penalty, or what’s called an Interest Rate Differential Penalty (IRD).

Unfortunately, there is no standardization in how IRDs are calculated in Canada, this leaves each institution to create their formulas on how to charge you extra money. One thing is for sure, big banks are fantastic at making money, as such the cost to break a mortgage at a big bank is considerably more than at a smaller lender.

Another reason the big banks are your most expensive mortgage option is that they really don’t provide you with real mortgage options at all. They only sell their own products. 

When you deal with a single financial institution, you are dealing with a banker, who is paid by the bank, to make the bank money. This person doesn’t have your best interests in mind, they have sales goals to meet and will advise you accordingly.

Alternatively, when you work with an independent mortgage professional, you can choose mortgage options from many financial institutions. Also, you receive financial advice that is impartial and not tied to a single institution's bottom line, so you can stay clear of lenders with astronomical payout penalties.

If you have a mortgage at one of Canada’s big banks, and it’s up for renewal within the next couple of years, please consider connecting with me so that we can put together a plan to save you money on your next mortgage.

I can represent you to many lenders who have lower rates and better mortgage options than any of the big six banks.

Let’s talk. Sabeena Bubber 604-862- 8526 or visit sabeenabubber.ca .

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Bank of Canada Holds Rate at 2.25% — July 15, 2026

By Sabeena Bubber • July 15, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The tone of today's announcement is notably more optimistic than previous months. Here's what's changed and what it means for you. What the Bank of Canada Said Signs of Improvement For the first time in several months, the Bank is signalling that Canada's economy is showing real signs of improvement. Growth is picking up, and inflation is projected to ease gradually from its recent spike. While risks remain, particularly around the Middle East conflict and U.S. trade policy, the overall tone has shifted toward cautious optimism. The Global Picture Since the April Monetary Policy Report, global economic prospects have been dampened by higher oil prices from the Middle East conflict. However, the build-out of artificial intelligence is now supporting economic activity in a growing number of countries. Oil prices are still below their April peak, though the situation in the Middle East remains volatile. The U.S. economy is growing at about 2.5%, driven by strong consumer spending and booming AI investment. China continues to expand on the back of robust exports. Europe has been weighed down by high energy prices but is expected to strengthen in the second half of the year if prices ease as anticipated. The Bank projects global GDP growth will slow to 2.75% in 2026 before recovering to around 3.25% in 2027 and 2028. The Canadian Economy Canada's GDP data over the past year has been choppy. Growth stalled as the economy adjusted to new tariffs, high uncertainty, and slower population growth. But there are now clear signs that growth has resumed in the second quarter, estimated at 2.5%. The Bank acknowledges this largely reflects the unwinding of temporary factors, but sources of growth appear to be broadening. Consumer spending looks solid. Housing activity has been weak but is showing signs of stabilizing. Export growth has resumed and is expected to strengthen. Business investment is projected to pick up modestly, boosted in the near term by the oil and gas sector. More businesses also report they are finding ways to navigate through trade uncertainty. Following GDP growth of 0.7% in 2026, the Bank projects growth of 1.8% in both 2027 and 2028. The unemployment rate was 6.5% in June, continuing to hover in the 6.5% to 7% range it has maintained since late 2024. Inflation CPI inflation rose to 3.2% in May, mainly due to higher gasoline prices linked to the Middle East conflict. Excluding gasoline, inflation was just 2.2%, and core inflation measures remained close to 2%. That is an important distinction: the inflation we are seeing is largely an energy story, not a broad cost-of-living surge. Near-term inflation expectations remain sensitive to gasoline prices, but longer-term expectations are well anchored. The Bank expects CPI inflation to stay elevated in June before easing gradually in the coming months, returning to around 2% in early 2027. Inflation is then forecast to average around 2% in 2027 and 2028. Why the Bank Held Governing Council judged that the current rate of 2.25% remains appropriate to sustain the economic recovery and bring inflation back to target. Uncertainty is still high, and the Bank remains prepared to adjust monetary policy as needed. The commitment to price stability remains firm through this period of global upheaval. What This Means for Mortgage Holders and Buyers A rate hold means no immediate change to variable-rate mortgage payments or home equity lines of credit (HELOCs) tied to the prime rate. The prime rate remains at 4.45%. Today's announcement carries a more positive signal than we have seen in recent months. The economy is recovering, core inflation is near target, and the Bank's language suggests the path forward is one of gradual improvement, not further tightening. For borrowers, this is an encouraging environment to plan ahead. If you are renewing a mortgage in the coming months, thinking about purchasing, or weighing your fixed vs. variable options, now is a good time to have that conversation. The landscape is shifting, and being prepared puts you in the best possible position. The next scheduled rate announcement is September 9, 2026 . As always, every borrower's situation is unique. If you have questions about how today's decision affects your mortgage, reach out. I am here to help. Information sourced from the Bank of Canada's official press release dated July 15, 2026.
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Buying a Vacation Property or Rental? Here’s What Lenders Look For

By Sabeena Bubber • July 8, 2026
Owning a vacation home or an investment rental property is a dream for many Canadians. Whether it’s a cottage on the lake for family getaways or a rental unit to generate extra income, real estate can be both a lifestyle choice and a smart financial move. But before you dive in, it’s important to know what lenders look for when financing these types of properties. 1. Down Payment Requirements The biggest difference between buying a primary residence and a vacation or rental property is the down payment. Vacation property (owner-occupied, seasonal, or secondary home): Typically requires at least 5–10% down, depending on the lender and whether the property is winterized and accessible year-round. Rental property: Usually requires a minimum of 20% down. This is because rental income can fluctuate, and lenders want extra security before approving financing. 2. Property Type & Location Not all properties qualify for traditional mortgage financing. Lenders consider: Accessibility : Is the property accessible year-round (roads maintained, utilities available)? Condition : Seasonal or non-winterized cottages may not meet standard lending criteria. Zoning & Use : If it’s a rental, lenders want to ensure it complies with municipal bylaws and zoning regulations. Properties that fall outside these norms may require financing through alternative lenders, often with higher rates but more flexibility. 3. Rental Income Considerations If you’re buying a property with the intent to rent it out, lenders may factor the rental income into your mortgage application. Long-term rentals : Lenders typically accept 50–80% of the expected rental income when calculating your debt-service ratios. Short-term rentals (Airbnb, VRBO, etc.) : Many traditional lenders are cautious about using projected income from short-term rentals. Alternative lenders may be more flexible, depending on the property’s location and your financial profile. 4. Debt-Service Ratios Lenders use your Gross Debt Service (GDS) and Total Debt Service (TDS) ratios to determine if you can handle the mortgage payments alongside your other obligations. With investment or vacation properties, lenders may apply stricter guidelines, especially if your primary residence already carries a large mortgage. 5. Credit & Financial Stability Your credit score, employment history, and overall financial health still matter. Since vacation and rental properties are considered higher risk, lenders want reassurance that you can handle the additional debt—even if rental income fluctuates or the property sits vacant. 6. Insurance Requirements Rental properties often require specialized landlord insurance, and vacation homes may need coverage tailored to seasonal or secondary use. Lenders will want proof of adequate insurance before releasing mortgage funds. The Bottom Line Buying a vacation property or rental can be exciting, but financing these purchases comes with extra rules and considerations. From higher down payments to stricter property requirements, lenders want to be confident that you can handle the responsibility. If you’re considering a second property, the best step is to work with a mortgage professional who can compare lender requirements, outline your options, and find the financing that works best for you. Thinking about making your dream of a vacation or rental property a reality? Connect with us today.