Stress Test Continues; Was Almost Abolished

Yes, the Stress Test was almost done away with but it continues.

It seems to be a good thing that all the mortgages since 2018 have been “stress tested” at 5.25%. Now that we are in the middle of 3.6 million mortgages renewing over an 18 month period we find that most everyone is able to make their new mortgage payments after renewal.

Mortgage Mark Herman, MBA  in Finance and 22 years experience as a mortgage broker in Western Canada

Nerd alert here!!

OSFI has also determined that loan-to-income (LTI) limits on each institution’s mortgage portfolio will remain in place, alongside the existing stress test.

LTI limits have been in place since each institution’s 2025 fiscal year start and are reported on a quarterly basis.
This is a limit on the volume of newly originated uninsured mortgage loans, at that financial institution, that exceed a 4.5x loan-to-income multiple. This is not a limit on each individual loan.
This measure was introduced in an effort to lessen the build-up of highly leveraged residential mortgage borrowers.
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Buying a Home with a Basement Suite – Some Details

 

Buying a home with a basement suite can be a powerful way to increase affordability, improve cash flow, and build long-term wealth — but not all suites (or lenders) are treated the same. If you’re considering a home with a suite, here are four important things to think about before you buy.

1) The type of suite matters.

If a suite is legal (fully permitted and meets municipal bylaws), all lenders will accept the rental income for qualification. If it’s not legal, make sure it’s at least fully self-contained, meaning it has its own entrance, its own kitchen, and its own bathroom. Many lenders will still consider rental income from these types of suites, but not all.

2) Your lender choice can change how much you qualify for.

Different lenders treat rental income very differently. Some will only allow 50% of the rental income to be used, while others allow up to 100%. Some lenders make you debt-service property taxes and heat, while others do not. These differences can have a huge impact on your approval amount, which is why working with a broker who understands rental income policy is so important.

3) Whether the suite is already rented or not DOES matter. Read More

Variable Rate or Fixed Rate for Renewals in 2026?

Here is what a math-based, mortgage broker with 21 years of experience and an MBA in finance looks at when deciding what to do for my own mortgage renewal.

This is a super common question as there are still 1,800,000 Canadian mortgage renewals to come before summer 2027, with the same 1.8M renewals completed since 2025.

Numbers at the top, words at the bottom.

Numbers

Variable Rate in 2024 = 6.20%

(Prime – .90% = 7.2% – .9% = 6.2% rate.)

-2.75% rate drops = 3.45% today, Jan 2026.

 

Variable Rate in 2026 = 3.75% today

(Prime – .70% = 4.45% – .7% = 3.75% rate.)

No rate drops expected, 2x .25% increases expected = 3.75% + .5 = 4.25% by the end of 2026. Read More

5 Car Loan Strategies That Can Boost Your Mortgage Approval — An MBA-Level Approach

Top 5 Car Loan Strategies We Used for Mortgage Clients in 2025

In today’s mortgage landscape, qualification isn’t just about income and credit—it’s about strategic debt management. With an MBA in Finance and 21 years in the industry, I approach mortgage qualification the same way I would evaluate a business balance sheet: identify inefficiencies, reduce liabilities, and optimize cash flow. Read More

The Bank of Canada maintains interest rate policy to end 2025

The Bank of Canada announced today that it is keeping its benchmark interest rate at 2.25%. This hold-the-line approach reflects the Bank’s expert interpretation of macroeconomic data.

We summarize the Bank’s observations and its outlook below.

Know this, fixed rates are trending up due to multiple factors, but mostly long term government debts, especially in the USA.

Now is a great time to buy while prices are soft, there are lots of listings, and rates are around the 4% mark

Mortgage Mark Herman, MBA; 1st time home buying specialist, and move-up mortgage broker

 

Canadian Economic Performance and Near-Term Outlook

  • The Canadian economy grew by a “surprisingly” strong 2.6% in the third quarter, even as final domestic demand was flat
  • The BoC notes that the increase in GDP largely reflected volatility in trade
  • The Bank expects final domestic demand will grow in the fourth quarter, but with an anticipated decline in net exports, GDP will likely be “weak”
  • Growth is forecast to pick up in 2026, although uncertainty remains high and large swings in trade may continue to cause quarterly volatility
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    Croatia Bare Boat trip for Defected

     

    This is what I was able to come up with from AI assistance. I know what today might be the cheapest day to buy tickets so I wanted to get this out.

    Awesome — this is exactly the kind of pre-festival sailing that makes Defected Croatia legendary. I put together:

    1. a practical 5–7 day bareboat (with skipper) itinerary that finishes at/near Tisno for the festival (Defected Croatia runs 29 July–3 Aug 2026, The Garden Resort, Tisno).
    2. which airport(s) to use from North America (pros & cons), and
    3. a realistic cost breakdown (boat, skipper, APA/provisions, fuel, marina fees, transfers, and flights) with conservative ranges and example per-person math for a group.

    I assumed you want to sail into the Tisno / Murter / Kornati area (best for reaching the festival and boat parties). If your group size or preferences differ, you can still use these numbers as a template.

    Best airport(s) to fly into

    Preferred — Split (SPU). Split has the biggest number of charter bases and marinas nearby (easy transfers to the central Dalmatian marinas and a short drive to Sibenik/Murter area). Split also has steadily improved long-haul/seasonal connections from North America/Europe for summer 2026 (more flight options = usually cheaper tickets and easier luggage handling for a sailing group).

    Close alternative — Zadar (ZAD). Zadar is usually a slightly shorter drive to Tisno / Murter than Split (est. ~50–75 km; ~50–75 min drive depending on route), so it’s a sensible choice if you find a better flight into ZAD. Good option if price/connection is better.

     

    Why not Dubrovnik or Zagreb for this festival? Both are further from Tisno (Dubrovnik is much farther south; Zagreb is inland and requires a long drive), so only use them if you want to see those cities first or have a cheap/one-stop fare.

     

    Recommendation summary: Fly into Split if you prioritize charter options and flight availability. Fly into Zadar if you want the shortest transfer to Tisno or find significantly cheaper flights.

    Where to pick up the boat (bases / marinas)

    For the Tisno / Defected area the most common charter bases are on Murter island (Marina Betina, Jezera, Hramina) and nearby marinas at Pirovac / Vodice / Šibenik. These are the most convenient for reaching Tisno and the Kornati / Murter anchorages. If you fly Split, many charters will also let you pick up boats from Marina Kaštela (Split) but that’s a longer reposition to Tisno.

    6-day (5–7 day flexible) sample itinerary — built for chill sailing, anchor bays and boat parties

    This is a 6-day example that’s easy on sleepers/crew and keeps hops to ~1–4 hours sailing per day. Distances/times are approximate — keep it flexible for weather.

    Day 0 (arrival day) — Fly into Split or Zadar, transfer to your base (Murter / Betina / Jezera). Provision, meet the boat and skipper, safety briefing, overnight in the marina. (If you arrive early you can overnight in Split/Zadar then transfer next morning.)

    Day 1 — Murter (Betina/Jezera) → Levrnaka / southern Kornati (anchor)

    Short hop into the Kornati archipelago; swim, snorkel, small beach party vibe. (1–3 hours sailing depending on exact start.)

     

    Day 2 — Levrnaka → Kornat / Telašćica (Dugi Otok)

    Explore the rugged Kornati islands, anchor in a protected cove. Consider a dinghy swim or small shore walk. (2–4 hours).

     

    Day 3 — Telašćica Bay (Dugi Otok) → Sali / Žut / Kornati villages

    Visit salt lake & cliffs in Telašćica; overnight near Žut or Sali (great small restaurants). (Short hops + plenty of time ashore.)

     

    Day 4 — Sali area → Šibenik channel / Kaprije / Zlarin

    Work your way back toward the mainland, pick a quieter island for an evening barbecue ashore. (2–3 hours.)

     

    Day 5 — Head toward Murter/Tisno area — anchor near Tisno or return to marina

    Relax, pack, enjoy a last swim. If the festival boat parties are running, you can position near Tisno / The Garden Resort. (Short sail.)

     

    Day 6 — Return boat to base (morning), handover and transfer to The Garden Resort (Tisno) for Defected

    Drop the boat on time, transfer (short taxi/shuttle) to The Garden Resort. Enjoy the festival.

     

    If you want 5 or 7 days: compress or add an extra island day (e.g., add Žut, Kornati more exploration, or Krka waterfalls day trip by car from Šibenik).

    Typical charter + trip costs — realistic, cited estimates & example per-person math

     

    I show a conservative example for a 7-day bareboat + skipper (skippered) arrangement and for group splitting. Actual prices depend on boat size, season (late July = high season), and how many people share costs.

    Key price inputs (sources):

    Base weekly bareboat charter average (Croatia, mid/high season): ~€3,000–€5,000 / week for typical 40–50ft yachts (price varies by boat class).

    Skipper: €150–€250 per day (peak summer can be toward top end). So for 7 days that’s about €1,050–€1,750.

    APA (Advance Provisioning Allowance) to cover fuel, food, park fees, marina dues, etc.: ~20–30% of the base charter (typical guidance). (Example: 25% of €4,000 = €1,000).

    Fuel, marina & extras: often covered from the APA, but expect fuel & marinas to be a few hundred euros total depending on itinerary.

    Security deposit: refundable, commonly €1,000–€3,500 held at base.

     

    Flights (North America → Split / Zadar)

    Ballpark round-trip economy fares in summer: US$700–1,500+ per person depending on city, routing and timing. (Transatlantic availability is increasing in 2026 — check direct seasonal routes; new services were announced for 2026). Use the low end if you book early / use connections; high end if last-minute or peak dates.

    Sample budgeting scenarios (I’ll give an example for clarity; keep in mind these are estimates to help planning):

     

     

    Example A — mid-range charter plan (group of 12 people) — 7 days (one yacht, skipper)

     

    Base charter (week): €4,000.

    Skipper: €1,050 (7 days × €150/day).

    APA (25%): €1,000 (used for fuel, provisions, marina fees — any unused is usually returned).

    Final cleaning / tourist tax / minor extras: €200.

     

    TOTAL CHARTER COST (all) = €4,000 + €1,050 + €1,000 + €200 = €6,250.

     

    Per person (12 people) = €6,250 / 12 = €521 (~US$560) each for the boat week (including skipper/APA estimate).

    Add flights (example): US$1,000 avg → US$1,000 (~€930 depending on FX) per person.

    Add transfers (shared minivan from Split to Murter/Tisno): €20–€40 per person (shared).

     

    Grand approximate cost per person = Boat €521 (~US$560) + Flights US$1,000 + Transfers €30 (~US$33) + Festival ticket €294 (~US$320) = ~US$1,913 (rough order). (The festival ticket price for 2026 is listed around €293.99 / ~US$340 at time of posting).

     

     

    Example B — larger group (say 16 people) — same charter numbers

     

    If the same yacht can actually accommodate (often you’d need larger vessel or two boats for 16 people), but suppose you split across two boats or a catamaran that fits more:

    Total charter/fixed costs rise (larger boat or two boats), but per person often drops slightly. For two similar boats totaling €8,000 + skipper(s)/APA, divide by 16 → could be ~€450–550 per person for boats. Exact numbers depend on vessel(s) chosen.

     

    Other cost considerations

     

    If you need two boats for 10+ people (many monohulls sleep 6–8), budgets need to be doubled accordingly — catamarans and bigger yachts cost more. Check sleeping capacity before booking.

     

    Provisioning per person (food/drinks): if not entirely via APA, budget €30–€60 per person per day for meals/drinks if you eat ashore and drink a fair amount.

     

    Marina fees / national park fees: included in APA generally but expect modest fees at some harbors or National Park day permits.

     

    Cancellation insurance / travel insurance (strongly recommended) — variable cost but plan ~US$50–150 pp.

     

    Damage waiver or deposit insurance can reduce the need to block a large security deposit. Ask charter company

     

    Quick booking advice / logistics (practical)

  • Book boats early (high season July end = peak for charters and festival). Many bases sell out or require larger deposits months ahead.
  • Check yacht capacity vs sleeping berths — if your group is large (10–20 people per your earlier planning), you will likely need either a big catamaran or two yachts. Pricing rises accordingly.
  • Get a skipper unless your crew is fully experienced and certificated — local waters, narrow channels and crowded marinas in high season make the skipper a very good call.
  • Plan pickup/dropoff times so you can hand back the boat the morning you need to get to the festival — or drop the boat a day earlier and stay ashore near Tisno. Transfers from Murter/Tisno to The Garden Resort are short.
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    Mortgage Renewals – 2.75 million Canadian Mortgage Renewals Before 2028!!

    Mortgage Stress Test: Why It’s Protecting Homeowners Ahead of the 2026 Renewal Wave

    If you locked in your mortgage around 2% five years ago, you probably remember grumbling about the federal “stress test.” At the time, qualifying at 5.25% felt unnecessary — almost punitive. Fast forward to today, and that very safeguard is proving to be one of the smartest policies in Canadian housing finance.

    The Renewal Wave Is Coming

    According to the latest CMHC report, Canada is heading into a busy period of mortgage renewals:

  • 750,000 mortgages will renew in the second half of 2025
  • Over 1 million more in 2026
  • 940,000 in 2027
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