The Year That Was and the Year to Come

Shanna Davis • January 2, 2018

2017 is in the rear view mirror and the road to 2018 is directly in front of us! As starting a new year is a great time to gain some perspective, let’s reflect on some of the changes brought about this last year in the Canadian housing and mortgage market, and maybe speculate a little bit about what’s to come. Mortgage writer Steve Huebl from Canadian Mortgage Trends keeps on top of things quite nicely, here are a couple of his latest articles. Let’s look forward, first, then backwards!

The Latest in Mortgage News – 2018 Forecasts

It can be a chore to stay on top of the latest mortgage news these days, particularly given the barrage of forecasts and predictions for housing markets in 2018.

Unsurprisingly, the majority of forecasts for the year ahead have focused on OSFI’s new mortgage rules, including the mortgage stress test for all uninsured mortgages, which officially come into effect on January 1, 2018.

Here’s a sampling of some of the latest forecasts on where home sales and prices are headed in the new year and beyond, and the impact that the new B-20 mortgage rules are likely to have.

CREA Forecasts Drop in Home Sales

The Canadian Real Estate Association (CREA) came out with its latest home sales forecast for 2018, and now expects a 5.3% drop in national sales to 486,000 as a result of OSFI’s new mortgage regulations.

That’s about 8,500 sales lower from its previous forecast. The Association also expects home prices to drop 1.4% in 2018 to $503,100.

“With some homebuyers likely advancing their purchase decision before the new rules come into effect next year, the ‘pull-forward’ of these sales may come at the expense of sales in the first half of 2018,” CREA said in a statement.

“Meanwhile, other potential homebuyers are anticipated to stay on the sidelines as they save up a larger down payment before purchasing and contributing to a modest improvement in sales activity in the second half of 2018.”

Reuters Poll Points to Smaller Home Price Gains

A recent Reuters poll of analysts that found home prices are expected to grow just 1.9% in 2018 (vs. the 8.5% gain seen in 2017) due to the tougher mortgage rules and an expectation for further interest rate increases.

Toronto home prices are expected to cool to 2% in 2018 and rise to 3% in 2019, while Vancouver year-over-year price gains are still expected to hit 6% in 2018 before cooling to 4.6% in 2019.

A majority of the analysts surveyed said the new mortgage rules will have a “significant” impact on housing activity, though most noted that higher interest rates pose the biggest risk.

RE/MAX Outlook Points to Growth in the Suburbs

The 2018 Housing Market Outlook published by RE/MAX noted two distinct trends in 2017 that are expected to continue into 2018: the shift towards condo ownership in Canada’s highest-priced markets, Toronto and Vancouver, as well as a race to the suburbs for prospective homebuyers looking for better affordability.

In 2017, demand for condos in both Toronto and Vancouver continued to outpace supply, with prices increasing 16% and 22% year-over-year, respectively.

RE/MAX forecasts an overall 2.5% increase in residential sale prices in 2018 “as the desire for home ownership remains strong, particularly among Canadian millennials.”

CMHC Sees Moderating Home Price Increases

The Canada Mortgage and Housing Corporation (CMHC) is forecasting continued growth in home prices in its Housing Market Outlook , but at a more moderate pace.

It expects MLS average home prices to increase from a range of $493,900-$511,300 in 2017, to a range of $499,400-$524,500 by 2019.

CMHC also provided its forecast on expected interest rate increases over the near-term horizon: “In our baseline scenario, the posted 5-year mortgage rate is expected to lie within the 4.9%-5.7% range in 2018 and within the 5.2%-6.2% range in 2019.”

The Contrarian View

The folks over at CIBC don’t foresee OSFI’s new regulations having much material impact on the housing markets in both Vancouver and Toronto, at least not over the long run.

In case you missed the research note from CIBC’s deputy chief economist Ben Tal, he wrote that government efforts to cool the Toronto and Vancouver housing markets will do little more than soften Canada’s two most expensive housing markets.

“On the surface [the stress test for uninsured mortgages] reduces the purchasing power of typical buyers by close to 20%, and we estimate that no less than 10-15% of mortgage originations will be impacted by that move. However, the actual reduction in demand is likely to be much less significant,” Tal wrote. “We suggest that the combination of the creative imagination of borrowers, some exceptions to the rule and increased activity among alternative lenders will soften the blow to the market as a whole with actual demand slowing by only 5-7% in the coming year.”

Tal also cites supply constraints for new housing development, particularly in Toronto, along with long-term housing demand in Toronto and Vancouver from new immigrants and non-permanent residents as increasing price pressure over the long run.

2017 – A Year in Review

As we count down the final days of 2017, we look back on a year that presented fresh challenges for the mortgage industry with the announcement of yet more mortgage rule changes.

While OSFI’s B-20 changes dominated headlines during the later part of the year, here are some of the other top mortgage newsmakers for 2017:

Rate Movements

After two years with the overnight target rate stuck at 0.50%, the Bank of Canada began a new rate hike cycle with quarter-point increases in July and September, with more hikes widely expected in 2018.

The most important benchmark for fixed-rate pricing is the 5-year government bond and in 2017 we were reminded of how fast 5-year yields can climb.

Stock Moves

Finally, here’s a look at the performance of Canada’s big banks along with the public companies that make the majority of their revenue in the mortgage business.

¹ Discounted mortgage rates reflect estimates taken from the most competitive lenders’ rate sheets, as of December 31.

² RBC’s 5-year non-redeemable GIC with monthly interest is used as a proxy for GIC rates. In reality, some lenders have to pay notably more on their GICs than RBC.

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New to Credit? Let’s Build a Solid Foundation

By Shanna Davis • December 25, 2025

Starting from Scratch: How to Build Credit the Smart Way If you're just beginning your personal finance journey and wondering how to build credit from the ground up, you're not alone. Many people find themselves stuck in the classic credit paradox: you need credit to build a credit history, but you can’t get credit without already having one. So, how do you break in? Let’s walk through the basics—step by step. Credit Building Isn’t Instant—Start Now First, understand this: building good credit is a marathon, not a sprint. For those planning to apply for a mortgage in the future, lenders typically want to see at least two active credit accounts (credit cards, personal loans, or lines of credit), each with a limit of $2,500 or more , and reporting positively for at least two years . If that sounds like a lot—it is. But everyone has to start somewhere, and the best time to begin is now. Step 1: Start with a Secured Credit Card When you're new to credit, traditional lenders often say “no” simply because there’s nothing in your file. That’s where a secured credit card comes in. Here’s how it works: You provide a deposit—say, $1,000—and that becomes your credit limit. Use the card for everyday purchases (groceries, phone bill, streaming services). Pay the balance off in full each month. Your activity is reported to the credit bureaus, and after a few months of on-time payments, you begin to establish a credit score. ✅ Pro tip: Before you apply, ask if the lender reports to both Equifax and TransUnion . If they don’t, your credit-building efforts won’t be reflected where it counts. Step 2: Move Toward an Unsecured Trade Line Once you’ve got a few months of solid payment history, you can apply for an unsecured credit card or a small personal loan. A car loan could also serve as a second trade line. Again, make sure the account reports to both credit bureaus, and always pay on time. At this point, your focus should be consistency and patience. Avoid maxing out your credit, and keep your utilization under 30% of your available limit. What If You Need a Mortgage Before Your Credit Is Ready? If homeownership is on the horizon but your credit history isn’t quite there yet, don’t panic. You still have a few options. One path is to apply with a co-signer —someone with strong credit and income who is willing to share the responsibility. The mortgage will be based on their credit profile, but your name will also be on the loan, helping you build a record of mortgage payments. Ideally, when the term is up and your credit has matured, you can refinance and qualify on your own. Start with a Plan—Stick to It Building credit may take a couple of years, but it all starts with a plan—and the right guidance. Whether you're figuring out your first steps or getting mortgage-ready, we’re here to help. Need advice on credit, mortgage options, or how to get started? Let’s talk.

Is Refinancing Your Mortgage a Good Way to Consolidate Debt?

By Shanna Davis • December 18, 2025

If you're a homeowner juggling multiple debts, you're not alone. Credit cards, car loans, lines of credit—it can feel like you’re paying out in every direction with no end in sight. But what if there was a smarter way to handle it? Good news: there is. And it starts with your home. Use the Equity You’ve Built to Lighten the Load Every mortgage payment you make, every bit your home appreciates—you're building equity. And that equity can be a powerful financial tool. Instead of letting high-interest debts drain your income, you can leverage your home’s equity to combine and simplify what you owe into one manageable, lower-interest payment. What Does That Look Like? This strategy is called debt consolidation , and there are a few ways to do it: Refinance your existing mortgage Access a Home Equity Line of Credit (HELOC) Take out a second mortgage Each option has its own pros and cons, and the right one depends on your situation. That’s where I come in—we’ll look at the numbers together and choose the best path forward. What Can You Consolidate? You can roll most types of consumer debt into your mortgage, including: Credit cards Personal loans Payday loans Car loans Unsecured lines of credit Student loans These types of debts often come with sky-high interest rates. When you consolidate them into a mortgage—secured by your home—you can typically access much lower rates, freeing up cash flow and reducing financial stress. Why This Works Debt consolidation through your mortgage offers: Lower interest rates (often significantly lower than credit cards or payday loans) One simple monthly payment Potential for faster repayment Improved cash flow And if your mortgage allows prepayment privileges—like lump-sum payments or increased monthly payments—those features can help you pay everything off even faster. Smart Strategy, Not Just a Quick Fix This isn’t just about lowering your monthly bills (although that’s a major perk). It’s about restructuring your finances in a way that’s sustainable, efficient, and empowering. Instead of feeling like you're constantly catching up, you can create a plan to move forward with confidence—and even start saving again. Here’s What the Process Looks Like: Review your current debts and cash flow Assess how much equity you’ve built in your home Explore consolidation options that fit your goals Create a personalized plan to streamline your payments and reduce overall costs Ready to Regain Control? If your debts are holding you back and you're ready to use the equity you've worked hard to build, let's talk. There’s no pressure—just a practical conversation about your options and how to move toward a more flexible, debt-free future. Reach out today. I’m here to help you make the most of what you already have.