A topsy turvy mortgage world

Tracy Head • September 27, 2022

Over the last few weeks, I’ve had tough conversations with a few clients.


With unprecedented rate hikes over the last few months, borrowing power and affordability for clients has declined sharply.

The housing market is softening, but not enough for the clients who need a correction the most. I had a conversation this week with one of my favourite appraisers. He said that from April to the end of June he saw a sharp correction and that he feels prices are starting to normalize now.


I feel like the housing and mortgage worlds are a bit topsy turvy right now.


One interesting (and I’m not sure that is the right word) thing that I’ve seen happen three times over the last month is backyard developers walking away from properties they wrote offers on in the first quarter of the year.


By backyard developers I mean people that have been buying up properties zoned for multi-family development on spec, hoping to flip them down the road as land assemblies or even pull together financing themselves to develop these properties.


Early in the year these people wrote subject-free offers with long closing dates (ie: September/October) in the frenzy of the spring market.


One couple accepted an offer on a home they owned with a long closing and wrote an offer to purchase another home intending to tear it down and build a fourplex on the property. Two weeks before closing their purchaser backed out and left them without the funds to complete their purchase.


They in turn looked at the decrease in value of the home (over $300,000 based on the current appraisal) they were supposed to purchase and decided they no longer wanted to move forward. They walked away from the contract.


I’m not sure of the chain reaction this caused, but most people I work with enter into these contracts in good faith. I was floored by the callous nature of these clients that choose not to move forward and am curious to see if they will be sued by the sellers.


Another challenge I’m coming across is clients who signed purchase agreements on pre-builds a year or more ago who are no longer qualifying for the financing they need because rates have increased so dramatically over the last few months.


I have four on the go that are all set to complete over the next few months. I have lost a bit of sleep over these lately. I am, however, very pleased with how the lenders have gone to bat for these clients to help make their financing work.


If you have a pre-approval or rate hold in place, or are coming to completion on a new build, I urge you to reach out to your mortgage person to confirm that your numbers still work, and that your price point hasn’t changed.


That all felt a little dark, but I really want to make sure that potential buyers know how the increased rates might affect their purchasing power. On a brighter note, I am starting to see things pick up again with more homes selling, and feel like we are moving to a more balanced market than we’ve seen over the last few years.

Tracy Head

Mortgage Broker

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Reverse Mortgage Solutions

By Tracy Head • September 22, 2025
For every problem there’s a solution. Sometimes more than one. It seems like there is an ebb and flow in the types of mortgage products clients choose. Over the last few years I have definitely been fielding more inquiries about reverse mortgages. Although they are becoming more widely accepted, reverse mortgages had a lot of bad publicity. The negative press I’ve seen relates to the American housing market where predatory lenders were taking advantage of vulnerable seniors. Reverse mortgages in Canada are highly regulated so that this does not happen. For some clients it takes a while for them to wrap their heads around reverse mortgages as an (or the best) option for them. Particularly in the Okanagan we see many clients who are house-rich but cash poor. Or at least have limited income to cover their day-to-day living expenses. Sometimes even when the clients recognize that a reverse mortgage is the right plan for them their families or children have objections. When I am working with clients and we are looking at a reverse mortgage as an option I always invite them to include their families / children to our conversations. Often clients are too embarrassed to share with their children exactly how dire their finances are. Sometimes clients can’t get past the stigma of refinancing via a reverse mortgage because all their lives they have worked hard to make sure their mortgage is paid off. Cliché as it sounds, times have changed. The cost of living has risen far quicker than increases to pension income. A friend of mine shared a conversation he had with reverse mortgage clients and their children. The children were vocally opposed to their parents moving forward with a reverse mortgage. Paraphrasing a bit but it went like this: “The way I see it” he said “after completing a thorough review of your parents’ finances, we have three options. Downsizing isn’t an option as they are already in a condo. Number one, they carry on with the current mortgage that they can’t afford. Their expenses come to about $2,000 per month so you can each transfer them $1,000 per month to help cover their payments. Number two, your parents can sell and move in with one or the other of you. Third, we take a closer look at a reverse mortgage to see if that helps them stay in their home without any financial help from you.” Apparently there was a very long pause. After a more thorough conversation about the pros and cons of a reverse mortgage and answering more questions the family did indeed feel a reverse mortgage was the best option for their parents. If you (or your parents) are thinking about a reverse mortgage make sure you take your time and ask all the questions you need to so you are confident moving forward.  I have seen reverse mortgages have a profound impact on quality of life for many of my clients. I did not used to be a huge fan of reverse mortgages but have to say I am using them more often to help clients enjoy their retirement years without losing sleep trying to figure out how to cover their expenses.

Mortgage Crisis

By Tracy Head • September 5, 2025
A wise broker friend of mine once told me there is no such thing as a mortgage emergency. I think this may depend on whose perspective this is. I’ve thought about her statement over the years. I think what constitutes a mortgage emergency really depends which end of the transaction you are on. One situation I run into regularly is clients who have left dealing with their mortgage renewal until the bitter end. This doesn’t necessarily constitute a mortgage emergency if you are not planning to make any changes to your mortgage and you intend to stay with the same lender. However, if you are in a private mortgage that was intended to be a short-term solution leaving your renewal until the bitter end can put you in a precarious position. Not all private lenders automatically offer renewals. Some charge a significant fee to renew for another term. Some will renew but dramatically increase your rate. If your plan was to move to a traditional lender once your private mortgage comes up for renewal this process can take weeks and in some case months. Depending on your situation a refinance to pay out your private mortgage can be very challenging right now with stricter qualifying guidelines and higher interest rates. Sometimes clients are proactive with their plan to move from a private mortgage and we run into problems and additional document requests from the new lender or challenges like delays in getting appraisals done. Whether you are in a private mortgage or your mortgage is with a traditional lender I suggest you start looking into renewal options about six months ahead of your maturity (renewal) date. We can lock down an interest rate hold for you four months ahead of your maturity date but I love to have a conversation with my clients about six months prior so we can develop a plan as to how we will handle their upcoming renewal. Not all lenders offer an open mortgage at renewal so if you dawdle too long you may end up locked in with your current lender for a bit longer. If you have left your mortgage renewal until it is right around the corner don’t panic. Many lenders do offer an open mortgage so you can opt for this to buy yourself some time if you are planning to make any changes to your mortgage. Take some time to evaluate your options. Small tweaks can potentially make a significant difference to your bottom line so it is key to work with a professional that has your best interests at heart.