Advice for Living Through These Uncertain Times

Dan Caird • May 27, 2020

It only takes a quick trip to the grocery store to realize that life is VERY different than it was just a couple of months ago. COVID-19 has already left a permanent mark in modern human history. So as you continue life mid-pandemic, here’s some good advice: don’t believe everything you read on the internet or see in the news.

As it relates to your personal financial situation.
As it relates to the Canadian economy.
As it relates to the value of your home.
As it relates to Canadian real estate values.

Because as the media continues to cover COVID-19, you can expect to see financial doomsday headlines; designed to grab your attention, get more outlandish as time goes on. The goal is to catch your eye with a wild headline so that you read an article (or watch a video) and are exposed to the advertisements contained within.

Media and news companies are in the business of selling advertisements, not providing you with accurate unbiased information.

The best way to grab your attention is with an attempt to instil fear or shock. One headline will read that house prices are expected to plummet, the next will claim mortgage defaults are on the rise by a billion per cent, while the next will provide incredible proof that house sales are expected to grind to a screeching halt and will never return to normal.

And although most of these stories contain *some* level of truth, rest assured that what may be true for the rest of Canada (or the US) is not necessarily true about your personal financial situation, your local economy, your local real estate, or your mortgage.

Don’t buy into the hype and get anxious about things you can’t control. 

It might be best to just turn off the TV, put down the newspaper, and stop scrolling Facebook. Especially if you aren’t thinking of making a move anytime soon anyway! But if your mortgage is up for renewal, if you’re thinking of buying a new property, or if you’re looking to make a change with your investments, then it’s best to talk with local professional and seek their advice!

Be influenced by those who have your best interest in mind!

If you have any questions about your mortgage, please don’t hesitate to contact me anytime. I’d be more than happy to let you know exactly where you stand.

Share

DAN CAIRD
Mortgage Agent | DLC

RECENT POSTS

Bank of Canada Holds Rate at 2.25% — April 29, 2026

By Dan Caird • April 29, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. This decision comes against a backdrop of significant global uncertainty — and for Canadian homeowners, buyers, and anyone with a mortgage coming up for renewal, here's what it means.

Stress-Testing Your Mortgage Affordability: Why It Matters

By Dan Caird • April 22, 2026
Buying a home is one of the biggest financial commitments you’ll ever make. That’s why lenders want to be sure you can handle your mortgage payments—not just today, but also if interest rates rise in the future. This is where the mortgage stress test comes in. Many Canadians hear the term but aren’t entirely sure what it means or how it affects them. Let’s break it down in plain language. What Is the Mortgage Stress Test? The stress test is a rule introduced by the federal government that requires all mortgage applicants to qualify at a higher rate than the one they’ll actually pay. Currently, you must qualify at the greater of your contract rate + 2% or the benchmark qualifying rate (set by the Office of the Superintendent of Financial Institutions). For example: If your lender offers you a 5-year fixed mortgage at 5.25%, you must show you could still afford the payments at 7.25% . Even if rates don’t rise that high, the stress test ensures you won’t be overextended if they do. Why Does It Matter? The stress test protects both borrowers and lenders by: Preventing over-borrowing : It ensures you don’t take on more debt than you can realistically handle. Preparing for rate hikes : With interest rates fluctuating, it’s a safeguard against sudden increases. Strengthening financial stability : It lowers the risk of defaults, protecting the housing market as a whole. While it can sometimes feel like a barrier—reducing the amount you qualify for—it’s ultimately designed to keep you from becoming “house poor.” How Does It Impact Buyers? The stress test can significantly affect your homebuying budget. For example, without it, you might qualify for a $600,000 mortgage, but with the stress test applied, you may only qualify for $500,000. That doesn’t mean your dream of homeownership is out of reach—it just means you may need to adjust expectations or explore other strategies, such as: Increasing your down payment Paying down existing debts Considering alternative lenders who may have different qualification standards Why Work With a Mortgage Professional? Every lender applies the stress test, but not every lender views your application the same way. An independent mortgage professional can: Shop multiple lenders to find the best fit Run affordability scenarios at different rates Help you understand how much house you can truly afford—without stretching your finances too thin The Bottom Line The mortgage stress test isn’t meant to stop you from buying a home—it’s there to protect you from financial strain down the road. By understanding how it works and planning ahead, you can make smarter choices and buy with confidence. If you’re thinking about purchasing a home, refinancing, or simply want to know how the stress test affects your options, connect with us today. We’ll help you stress-test your budget and find the mortgage solution that works best for you.