Fixed Rates Dropping

Tracy Head • December 19, 2022

Most years we see fixed rates start to drop towards the end of the calendar year as lenders try to boost their business to end the year strong. This year has been no exception.


Over the last few weeks I’ve seen fixed rates drop from close to six per cent about six weeks ago to 4.79 per cent and better as of this week. These rates vary depending on whether your mortgage is insured or not, but in relative terms we have seen close to a one per cent drop in many cases.


What does this mean in practical terms?


For one client I’m working with who is a single mom who is searching for a home to call her own, this increase in affordability has increased her purchase price by almost $20,000 which in her community puts her into a house rather than a condo.


For people who have upcoming renewals it may be time to connect and explore your options. If you are coming out of a fixed rate mortgage in the two per cent range, it is likely that you will be looking at a three month interest penalty to switch out of your current mortgage if you choose to do so before your actual renewal date.


I don’t advocate jumping ship really early in every case. Paying a prepayment penalty AND a higher interest rate isn’t always a great plan, but each situation is unique.


The next year is looking to be a bit bumpy with interest rates still, and from what I’m hearing rates will start trending down again towards the end of next year.


However, if you have a renewal coming up in the next four months I encourage you to reach out to explore your options now. With no historical research to support this, what I have seen for many years is interest rates pop up again as the new year starts.


I sat in on a call yesterday with the president of one of my favorite lenders. He had some interesting thoughts on the variable versus fixed conversation. Their firm has been watching delinquency rates carefully, and I was quite surprised to learn that the numbers of variable rate clients in arrears was actually far lower than the number of fixed rate clients in arrears.


I’m not sure whether that has to do with the proportionate split as to how many clients choose fixed over variable, or if there is something else that really affects these stats. I do know I am concerned for some of my variable rate clients as I know I am feeling the pinch with my own monthly mortgage payment increasing substantially.


I was also surprised to hear that most of the lender’s variable clients were choosing to stay the course

rather than lock into fixed rate terms.


If you are exploring whether locking in at this point makes sense for you, I encourage you to do your homework. Reach out to your mortgage person to run the numbers and see if this makes sense for you. With fixed rates now less than variable it may make sense, particularly if you are losing sleep at night.


However, if you are planning to make any changes over the next few years and are variable it most likely makes sense to stay the course.


Grateful to all who have reached out after reading my column to share their thoughts and feedback. Wishing you and yours a wonderful holiday season filled with love and laughter!!

Tracy Head

Mortgage Broker

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So Your Mortgage Is Approved

By Tracy Head • March 6, 2026
So Your Mortgage Is Approved… Now Don’t Break It By the time a buyer gets the call that their mortgage has been approved, the reaction is usually somewhere between relief and a sudden urge to celebrate like they’ve just won the Stanley Cup. After weeks of paperwork, bank statements, document requests, and answering questions about that mysterious $73 e-transfer from your cousin, you’ve made it to the home stretch. But here’s the thing many buyers don’t realize: a mortgage approval isn’t the finish line. It’s more like the last lap before the ribbon. And in this final stretch, there are a few things that can still trip you up if you’re not careful. As a mortgage broker who has watched this happen more times than I care to admit, allow me to offer a friendly list of things you absolutely should not do between mortgage approval and possession day. 1. Do Not Finance a New Car (Even If It Smells Amazing) You might think, “What better way to celebrate a new house than with a new truck in the driveway?” The lender disagrees. Taking on new debt before your mortgage funds can change your debt ratios, which were carefully calculated to get you approved in the first place. I once had a client proudly tell me about the brand-new SUV they bought the week before closing. Unfortunately, the lender was less impressed. Celebrate later. The house comes first. The new car can wait. 2. Do Not Quit Your Job to ‘Follow Your Passion’ I’m a big supporter of people chasing their dreams. But if your dream involves leaving your stable salaried position to start a kombucha brewing company three days before your mortgage funds… perhaps give that dream a couple more weeks. Lenders like stability. A sudden career change can send underwriting departments into mild panic mode. 3. Do Not Open New Credit Cards for Furniture, Appliances, or “Just in Case” It’s very tempting. You walk into a furniture store, see the perfect sectional, and suddenly there’s a cheerful salesperson offering “12 months no payments!” It sounds harmless, but that new credit line can affect your credit score and your debt calculations. Also, you may be shocked to learn this: the house will still accept furniture purchases after you own it. 4. Do Not Move Money Around Like You’re Running an Offshore Hedge Fund During the mortgage process, lenders carefully verify where your down payment and funds are coming from. If large, unexplained deposits suddenly start bouncing between accounts, it can raise questions. Questions lead to paperwork. Paperwork leads to stress. Stress leads to calling your mortgage broker at 9:45 p.m. Keep things simple and predictable until the deal is done. 5. Do Not Co-Sign a Loan for Someone Else You may be the generous type. A friend or family member might ask you to co-sign for a car or a line of credit. As noble as that is, lenders will treat that new obligation as your debt too. Even if your cousin promises they’ll “definitely make the payments.” Your lender prefers promises backed by math. 6. Do Not Miss Any Bill Payments Your credit report was likely pulled during the approval process, and lenders sometimes check again before funding the mortgage. A missed payment can ding your credit score at the worst possible moment. In other words, now is the time to be the most financially responsible version of yourself. The Bottom Line Once your mortgage is approved, the best strategy is surprisingly simple: keep everything exactly the same until your home officially closes. Same job. Same credit habits. Same bank accounts. Think of it like carrying a tray of drinks across a crowded room. You’re almost there—now is not the time to start dancing. The good news? Once the keys are in your hand and the deal is finalized, you’re free to celebrate however you like. Buy the couch. Paint the walls. Host the housewarming party.  Just maybe hold off on the kombucha startup for a week or two.

Reverse Mortgage follow up

By Tracy Head • February 23, 2026
Not long after my last column about reverse mortgages went live I received a thoughtfully written email from a reader challenging several of the points I made in my article.  He raised concerns about the cons around reverse mortgages and said he felt that I wasn’t diving into the potential negative impacts of reverse mortgage products. Most of the concerns boiled down to the erosion of equity in seniors’ most significant asset due to the compounding of interest over time. He felt that I didn’t show any calculations so people would not see the long-term cost of a reverse mortgage. When I work with my reverse mortgage clients I show them projections that include the interest cost. What people may not consider is the appreciation in value of homes over time. Reverse mortgage lenders don’t automatically go to the maximum allowable amount for every client (ie: “up to 55% of the value of the home”). Mortgage size is determined by the age of the client and the type and location of the home that they are in so as not to erode all of the equity in the home. Mortgages are done on a sliding scale so the younger they are the less equity clients have access to. The other piece to understand is that not every client pulls the entire amount they are approved for upfront. I encourage my clients to only pull what they require at the time and to have the rest available for if and when they need it. Initially I was not a huge fan of reverse mortgages for a lot of the reasons that he shared. However, I have many clients who are house rich with very limited income. People living on CPP and OAS can’t afford the basic necessities never mind any frills. Which leads to another reason I see the value in reverse mortgages. Many of the clients I work with have overextended themselves using credit cards or personal lines of credit and are in the position that they are making the minimum payment on their credit facilities by applying for more credit cards or loans, which leads to a spiral of increasing balances month over month with no way to repay these debts. Downsizing doesn’t always work because moving to a smaller home often means now they have a strata payment. Even if they downsize and have cash in the bank to cover living expenses, the end result is that they are still eroding that equity and now are not in the home they spent their lives in. I’ve seen reverse mortgages impact seniors in positive ways that you can’t even imagine. I’ve had clients supporting their middle-aged children while not having money to buy groceries. I’ve worked with clients who have needed to renovate their homes for accessibility issues due to health concerns as they age. I’ve seen clients leverage the equity in their homes to buy vacation homes. There are many types of clients who use reverse mortgages to achieve their financial goals. I do find that some of the loudest objections come from the families of clients. In these situations I first ask my clients if their families know the true extent of their financial distress. Next I ask if they would like to include trusted family members in the conversation so that we can address any concerns so that everyone is on the same page. Not all reverse mortgage clients are naïve. Many have already done their homework before they call.