Jeannie Mongrain Neighbourhood Mortgage Source Dominion Lending Centres

04/30/2025

WHAT DOES A LIBERAL GOVERNMENT MEAN FOR YOUR MORTGAGE RATE & THE BOND MARKET?
With the Liberals in charge, you might be wondering:
“Is this going to affect my mortgage rate?” Great question — and the answer is: maybe, but not overnight.
Here’s the scoop: and keep in mind it is all dependent on what happens with the tariff negotiations and if they get resolved. If they don't we could find ourselves in a market downturn with rates decreasing.
🟦 GOVERNMENT SPENDING & BONDS:
Liberal governments typically like to spend a bit more — think infrastructure, social programs, and green energy.
To pay for all that, they borrow more, which means issuing more government bonds. When there’s a bigger supply of bonds floating around, the return (or “yield”) on those bonds tends to go up — and that influences fixed mortgage rates, which are tied to bond yields.
🟦 THE BANK OF CANADA’S ROLE:
Now, the Bank of Canada is like the economy’s thermostat — it tries to keep things comfortable by adjusting its overnight rate.
If all that government spending heats things up too much (like pushing inflation higher), the Bank may respond by raising rates to cool things down. That could affect variable-rate mortgages in the months ahead.
But here’s the thing:
The Bank doesn’t care who’s in power — they care about inflation, jobs, and growth. So any rate change will be based on how the economy reacts, not politics.
✅ BOTTOM LINE:
More spending could push bond yields and mortgage rates a little higher down the road, especially if inflation picks up.
But the Bank of Canada will wait and see how things actually unfold before making any big moves.
Have questions about how this could impact your mortgage strategy? I’ve got you covered — just reach out!
– Jeannie Mongrain
Mortgage Broker | [email protected] | 613-266-9865

04/16/2025

📢 Bank of Canada Holds Interest Rate at 2.75%

The Bank of Canada is keeping its overnight lending rate steady as global uncertainty—especially around U.S. trade policies and tariffs—puts pressure on economic growth.

🔹 What’s happening?
• The Canadian economy is slowing
• Inflation is at 2.3%
• Lower oil prices and tax changes may ease inflation—for now
• Trade tensions could still push some prices up

🔹 What it means for you:
Slower growth and uncertainty could affect jobs, prices, and how much you pay for goods. The Bank is working to support the economy while keeping inflation under control.
Prime rate for variable rate mortgages won't change.

💬 What are your thoughts on the current economic outlook?

03/14/2025

MARKET UPDATE:

It seems like the US has decided to crash the party with a bunch of tariffs, affecting its top trading buddies like Canada, Mexico, and China. These tariffs are like that one guest who shows up uninvited and eats all the snacks, causing prices to rise and growth to slow down.

**Bank of Canada Gives a Little Rate Cut Gift **In response to all this tariff turmoil, the Bank of Canada decided to trim down the overnight rate by 0.25% today, bringing it to a nice 2.75%.

**Why the Change?**With tariffs flying around like confetti, people are a bit nervous about spending, and businesses are holding back on investing. Plus, our population isn’t growing as fast as it used to. So, the Bank of Canada decided to give the rate a little snip in hopes of striking a balance between giving the economy a boost and keeping inflation in check amidst all these impending tariffs.

**Trade Wars: The Not-So-Fun Party Crashers **Trade wars are causing quite a ruckus. Right now, there’s a 25% tariff on steel and aluminum heading to the US, which hits Canada hard since we supply most of their aluminum. It’s like everyone’s playing a game of tariff tag, and it’s not much fun.

**Looking Ahead: More Tariffs and Tough Times?**Despite Canada having a pretty good GDP growth in the last quarter of 2024, home sales and hiring have slowed down. And more tariffs might be on the way! China’s planning to slap a 100% tariff on Canadian canola oil and a 25% charge on pork and seafood. It’s like a tariff tug-of-war, and we’re all caught in the middle.

**The Bottom Line: A Bit of a Bumpy Ride Ahead**We’re in for some uncertain times. The US is on a tariff spree, and Canada, being one of its top trading buddies, is feeling the pinch. It’s a bit like a misguided economic game where everyone thinks they have to win by making others lose. But hey, the economic pie is supposed to grow when we all trade happily!

With Canada being a bit more exposed to these tariffs, our economy might feel the squeeze more than the US. Prices could go up, but the slowdown in activity might keep inflation in check.

Remember the term ''stagflation'' from the 1970s? Yep, it’s making a comeback!

The Bank of Canada might keep slicing the rate down to 2.25% by June, hoping to boost home sales. While layoffs and spending cuts might dampen the mood, lower interest rates would be a welcome repreive for anyone with an upcoming mortgage renewal or looking to purchase. Fingers crossed!

As always - don't hesitate to reach out with any questions!

Cheers,
Jeannie
613-266-9865

11/11/2024

LEST WE FORGET

11/08/2024

Check out my November Newsletter. If you want to get added to my distribution list drop me a DM with your email address. Happy Friday!

This month, I wanted to highlight some tips around refinancing your mortgage and considerations to make at renewal time! Plus, with the holidays just around the corner, I have included some of my favourite DiY gifting ideas to help get you started! Scroll down for all the details.

07/24/2024

**What’s the Scoop?**
The Bank of Canada has just dropped the overnight rate by 0.25%, bringing it down to 4.5%. 🏦✨ This means cheaper loans and mortgages could be coming your way!

**Why Should You Care?**
1. **Cheaper Loans & Mortgages:** Lower rates mean you might pay less interest on loans and mortgages. More savings = more fun money! 💸💃
2. **Inflation Update:** Prices are still a bit wild, but the experts say things should calm down by the second half of 2025. Hang in there! 📉
3. **Job Market:** Businesses are being cautious, so job growth is slow, but no major layoffs expected. Phew! 😅
4. **Consumer Sentiment:** We know the budget is tight, and everyone’s feeling the pinch. But hey, wage growth is looking up, especially for public sector folks! 💪

**The Bigger Picture:**
- **Core Inflation:** Expected to ease gradually. Think of it like a slow-cooked meal – it takes time but will be worth it! 🍲
- **CPI Inflation:** It’ll be a bit of a rollercoaster, but we should hit that sweet 2% target by late 2025. 🎢

**Feeling Stressed?**
You’re not alone. Many Canadians are cutting back on spending and feeling the financial strain. But remember, we’re here to help you navigate these choppy waters. 🌊

**Got Questions?**
Don’t hesitate to reach out! We’re here to make sense of it all and help you make the best financial decisions. Think of us as your financial lifeguards! 🛟

12/06/2023

With all the talk about what mortgage term is best right now…

…it’s NEVER been a one-size-fits-all solution.

👉 It’s always person-specific. 👈

What’s your situation like? What are you more comfortable with? What kind of risks are you willing to take?

Sure, the expectation is that rates will start to decrease slightly in the latter half of 2024.

But that doesn’t mean it will happen. It could. But not guaranteed.

(we were expecting rates to be close to 0 for a couple more years after they were) 🙊

So, you could maybe do a shorter term if you want to potentially take advantage of decreasing rates in the next 1-2 years.

Or you could be more comfortable with a longer term (also has its own advantages).

So, it’s situation- and person-specific. ✔️

👉 You should be consulting with a mortgage professional about your own situation. And go from there with the best possible outlook and plan.

I’m here to help you do just that. At any time, please reach out. 👋

I’m just a short message, comment, or call away!

12/06/2023

It’s the last Bank of Canada 🍁 meeting of 2023. FINALLY.

What a year.

What a couple of years, right?

3 years ago they were telling us they’ll keep the rates close to zero at least until 2023.

How’d that turn out? 😏

Well, we had a rate hold last month.

Hopefully the same this month. Is that wishful thinking? 🙏

We’ll see shortly!

I’ve been paying close attention to the data and what could be happening in the new year.

It’s entirely possible we’ll see some rate decreases in 2024. Wishful thinking! 💡

It is the holiday season, after all. Can’t help but be positive!

👉 I’ll be sure to send an update once we know what the BoC decides! So keep an eye out.

12/06/2023

What would you say? 💭

Does the Bank of Canada get a lump of coal? 🎁 Are they on the ‘naughty list’? 📃

Or have they redeemed themselves of late with the rate hold in November?

Maybe someone else should be on the naughty list instead?

Thoughts? Comment below! 👇

12/05/2023

“What mortgage amount can I afford?”. I’m always straight up and honest:

What you can get approved for has changed quite a lot over the last few years.

📈 With high home prices and interest rates, the amount the average Canadian can afford has decreased.

➡️ It used to be like this:

You could afford $100,000 per $25K of income.

➡️ Now it’s more like:

You can afford $100,000 per $35K-$37K of income.

Basically – if you want to purchase a $500,000 house with minimum down payment (5%), you’ll need a combined income of around $100,000 per year.

This includes costs like property taxes, default insurance, utilities.

💡 But keep in mind that this is the average cost across Canada.

The prices vary MASSIVELY between areas (Toronto, Vancouver for example are much more expensive than rural areas or even the Eastern or Prairie provinces in general).

To sum up:

Your hard-earned income doesn’t go as far as it did just a few years ago (thanks to increases in the cost of living).

This means it’s more difficult to get into the market for the first time. But that doesn’t mean it’s impossible or that there aren’t good opportunities out there. 💯

🤝 Come to a mortgage professional like me if you want to find the best path forward.

12/04/2023

Unfortunate, but it’s true…

…we’re seeing higher divorce rates over the last couple years.

So I thought I’d write about spousal buyouts when it comes to homeownership.

🏡 If one of the spouses wants to keep the home, we can do what’s called a spousal buyout to put the property one name instead of both.

Not common knowledge:

➡️ You can get up to 95% of the home’s value via a refinance of the mortgage.

And doing a refinance, if you get an appraisal done and a purchase agreement from both names to one name, this is a great option to keep the home in the event of a divorce.

This allows you to go above the common 80% home value and get that extra 15% if needed.

💭 Let me know if this makes sense. It’s a bit of a complex concept.

If you or anyone you know could use some help in this regard, please reach out!

You can find me here, give me a call, send me a message, or comment down below! 📩