Welcome to the January issue of my monthly newsletter!

Happy New Year!

Looking to do some self improvement this year? Don’t call it a resolution – those are out. Instead, try out a vision board or a bingo card! It’s a more visual way to represent what you’re trying to accomplish, with smaller increments of success and more incentive to share. They’re great content for social media (#trending), and a fun talking point with friends and family who come over and see what you’re envisioning.

Any kind of visual representation of your goals (like foods, places, activities, hobbies, etc.) is perfect for a collage that turns into a vision board. A simple 5×5 grid can hold 25 small goals for the year and be extra satisfying when you dab one of them off your list.

Still unclear? A quick social media search will give you thousands of examples and inspiration.

Here to There: The Bridge Loan Strategy

Timing is everything when you’re buying and selling a home. But… what if it wasn’t? When you want to purchase your next dream home, you search the market for days, weeks, even months to find the perfect place. And simultaneously, you prep your own home for sale, open it for viewings, and look for the right offer and buyer.

It’s great if the dates for your purchase and sale align and you want to move in exactly one day. But what if that isn’t the case?

Enter: the bridge loan. It’s literally a bridge between your current home and your future home! It fills the gap of financing when you can’t or don’t want to pay for two mortgages for an extended period of time.

Here are some reasons a bridge loan is a great solution for you:

1. You want to take your time moving rather than do it all in one day
2. Your new home purchase closes before your existing home sale
3. You want to renovate before moving in
4. You need time to clean or empty your existing home
5. The housing market is hot and you don’t want to miss a perfect property

If you think there must be a catch – there are a few. Here’s what you need to know:

• Bridge loans are short term, temporary loans between 1-90 days
• You need a firm sale agreement on your existing home
• You will be required to make payments on both mortgages during the bridging period when you own both properties
• A realtor is required to process the transaction
• Cash will be required to pay realtor and legal fees, plus any mortgage penalties, outside of the bridge loan and mortgage financing

The pros: You’ll have plenty of flexibility in terms of closing and moving dates. It allows you to buy your dream home when you see it, rather than settle for what’s available in a specific time window. You also have flexibility in terms of your new home purchase, as you won’t need a full downpayment for a new home, instead using the equity you’ve already built up in your existing home.

The cons: You will pay interest on the new financing amount at a higher than your regular mortgage. Plus, you might incur fines for breaking your existing mortgage. You also need to have a lump sum of cash to pay for closing and sale costs. You might also have to use any existing financing sources first, like maxing your line of credit.

Bridge Loans for Land: Some lenders will also offer you the ability to use bridge financing for purchasing land. This works well if you don’t have construction financing secured yet, or you haven’t decided what to do with that land right away. There are more considerations than with an existing home, like borrower options, your net worth, the location of the site, etc.

How it works: You’ll need to use a lawyer and a realtor. When you complete your new home purchase, you’ll sign documentation that guarantees you will use the funds from your sale to pay off the bridge loan (you won’t get any cash out of the deal). Your lender may also require a collateral charge on the property you’re selling, depending on their conditions and the amount of the bridge loan.

Next steps: Want to calculate what it would cost, run your scenario for viability, or even apply for a bridge loan? Call or email me! It costs nothing to get my expertise on the financial aspects of your home purchase and financing plans!

Ice to Meet You: Build Your Own Backyard Rink

A skating rink in your own backyard? Yes, please! A skating rink is a great way to keep kids busy, stay active yourself, entertain guests, or even use as a conversation-starting background to your social media content. Here’s how to make this easy, enjoyable feature at home this month.

1. Get a tarp: You’ll need to line the area you want to skate on with a heavy-duty tarp. You can get all kinds of sizes, so pick one that suits the area you’re looking to cover. Amazon is an easy destination but a hardware store might be a better bet so you can see and feel the quality before buying. If you think you want to make this rink year after year, consider investing in a quality tarp from heavydutytarps.ca.
2. Frame the area: Set up a border for your rink using wood you have – scraps, 2x4s, logs, whatever! You can also buy long boards at that same hardware store you’re shopping for your tarp at if you don’t have something suitable at home already. Keep the frame secure with brackets or angles. Alternatively, you can use snow for a frame – just be sure it’s firmly packed and fully covered by the tarp. The frame should be a bit smaller than the tarp’s area, as you’ll want the tarp to come at least 10cms up the sides.
3. Flood your rink: Use your backyard hose to flood the area until it’s at least 5 centimeters deep. Now the hard part – wait for it to fully freeze.
4. Decorate your creation: Use strings of outdoor lights to illuminate your rink so it can be used well into the evening. Other fun additions are folding chairs with blankets, an old scrap of carpet where you can put skates on and off, a portable fire pit, a cooler to keep your beverages in, or even an outdoor patio lamp style heater (just not too close to the rink!).

I hope you give this a try – and don’t let my invite get lost in the mail if you do!

Economic Insights from Dr. Sherry Cooper

Can the US unilaterally exit from the Canada, US, Mexico Agreement?
Yes. Under the treaty text, any of the three parties, including the United States, may withdraw from the agreement on its own by providing written notice and waiting six months. The more complicated question is whether the U.S. president can do that under domestic U.S. law without Congress, which is unresolved and would likely be litigated.

What the treaty allows
Article 34.6 of the USMCA (CUSMA) states that a party “may withdraw from this Agreement by providing written notice of withdrawal to the other Parties,” and that the withdrawal takes effect six months after that notice.

The provision also specifies that if one country withdraws, the agreement remains in force among the remaining parties, so a U.S. exit would not automatically terminate Canada–Mexico preferences with each other.

Domestic U.S. law constraints
In international law terms, there is a broad consensus that the United States could validly withdraw from USMCA by following Article 34.6’s notice-and-wait procedure.

In U.S. constitutional law, however, scholars and Congressional research note that it is unclear whether the president alone can terminate a congressional–executive trade agreement like USMCA; any attempt to do so unilaterally would likely trigger a major court battle over separation of powers.

Practical implications
Policy analyses stress that a unilateral U.S. withdrawal remains legally possible under the treaty but would generate significant trade and investment uncertainty in North America, especially given integrated supply chains and the 2026 review dynamic.

Recent commentary on Trump’s second term suggests that even announcing an intent to withdraw could be used as a bargaining tactic in the 2026 review, amplifying leverage but also elevating risk premia for Canadian and Mexican exposure to the U.S. market.

What are the likely trade consequences if the US withdraws from USMCA?
If the United States withdrew from the USMCA and allowed the agreement to lapse, North American trade would essentially revert to WTO most-favoured-nation (MFN) terms, with higher tariffs, greater regulatory friction, and significant disruption to integrated supply chains.

Tariffs and market access
Duty-free treatment on most Canada–US and US–Mexico trade would disappear, and trade would fall back to bound MFN rates; for Canada, modelling around a “no NAFTA/CUSMA” scenario highlights double-digit U.S. tariffs on trucks, apparel and footwear, and the loss of preferential access in key agricultural products.

USMCA disciplines on non-tariff barriers (customs facilitation, regulatory cooperation, digital trade, services, investment protection) would cease to apply vis-à-vis the United States, increasing administrative costs and uncertainty for cross-border commerce.

Supply chains and sectoral impacts
Highly integrated sectors such as autos, auto parts, machinery, energy, and agri-food would face the most significant adjustment costs, because production networks currently optimized for zero tariffs and common rules of origin would need to be restructured or repriced.

Analyses of a termination-type scenario emphasize that immediate disruption would likely reduce regional productivity and competitiveness, with knock-on effects on employment and investment in manufacturing-heavy regions in all three countries.

Macroeconomic and strategic effects
Canadian government modelling for a “U.S. withdraws from NAFTA” counterfactual (used as a proxy for losing USMCA preferences) shows a hit to Canadian GDP and preserved gains of roughly 0.25% of GDP from maintaining CUSMA, suggesting a similar order of magnitude loss if the U.S. actually exited.

Policy institutes warn that withdrawal would increase risk premia, depress business investment, and mark a broader retreat from regional integration, undermining North America’s collective share of global output and its ability to compete with other large trade blocs.

Likely policy responses
Canada and Mexico would almost certainly retaliate against any new unilateral U.S. tariffs (as they did against Section 232 measures), targeting politically sensitive U.S. exports; this would intensify the negative impact on U.S. exporters while adding to uncertainty.

In parallel, Canada and Mexico would likely seek to deepen their own bilateral arrangement and accelerate diversification to the EU and Indo-Pacific markets. However, most analyses underscore that replacing the scale of U.S. demand is practically impossible in the medium term.

The latest trial balloon: Some would argue the Canadian media is realizing the USMCA will be dissolved in favor of two independently negotiated bilateral trade agreements; one with Canada and one with Mexico. This is the latest missive from the US trade negotiators. This issue is very much up in the air, damaging Canadian consumer and business confidence.

The US Chamber of Commerce adamantly supports CUSMA, as Canada is the number one market for the exports of 32 American states.

All three countries must indicate by July 1 of next year whether they want to extend the agreement, renegotiate its terms or let it expire.

Bottom Line

CUSMA offers Canada crucial protection from much of the tariffs, making the vast bulk of Canadian exports exempt.

Despite the trade deal, the U.S. is still hitting Canadian exports of steel and aluminum with tariffs of 50 per cent, and some automotive exports and kitchen cabinets with tariffs of 25 cent.

Talks were ongoing about reducing the steel and aluminum tariffs but Trump called them off in October, triggered by an anti-tariff television ad campaign by the Ontario government.

And that’s it for January! It can be a long, dark month – but with things like bubble bath day (the 8th), pastrami sandwich day (the 14th), prohibition remembrance day (the 16th), Winnie the Pooh Day (the 18th), and national cheesy socks day (the 21st), there’s plenty to look forward to.

Best of luck with any New Year’s resolutions you’ve made, and I’ll see you back here in February.

If you’d like to be added to my distribution list, send an email to mike.bohte@pmgmortgages.ca

You can apply online today by visiting:
https://velocity.newton.ca/sso/public.php?sc=t675zfpk48mb

You can download my mobile mortgage app in the App Store/Google Play or by visiting:
dlcapp.ca/app/mike-bohte

Welcome to the December issue of my monthly newsletter!

December is the month of holidays and festive traditions – and also the season of incredibly high stress levels. If you need some fresh ideas on how to destress, give one of these a try:

• Forget Perfection! Getting something 90% done and letting go of the 10% of perfecting can help check things off your to-do list. Besides, no event is perfect… and that’s what makes great memories! Keep the mantra ‘water off a duck’s back’ in your mind for all the hiccups you encounter.
• Set Boundaries! Remember – it’s okay to say no to things. You don’t have to attend everything, make every recipe, shop for every person, and so on. Set a boundary that balances showing up for others and maintaining your own well-being.
• Share Tasks! Don’t try to do everything yourself! If you’re hosting, have guests bring things like food items, drinks, or whatever else you need – or invite a few to come early and help set up or stay late to help clean up.

Hopefully these tips help keep you grounded during this busy season. Now on to this month’s content!

2026 Financial Resolutions: Set Yourself Up for Success

December is a great time to start thinking about your 2026 finances. We have three big questions to ask yourself which will help course correct and set you up to meet your financial goals in the New Year.

But before we get that deep, let’s cover a few financial basics – and know that it’s okay if you’re still working on these steps:

1. Prioritize paying off high interest debt. That means credit cards with 20% rates and similar items. Consider a consolidation loan if you have multiple debts with rates over 15%.
2. Automate your savings. If you don’t already have an automatic withdrawal from your main checking account, set one up! Even just $50 a pay cheque can make a difference.
3. Forgive yourself for past mistakes. If you haven’t been responsible financially in the past, it’s okay! Let go of that and know you can do better, starting right now and building better financial habits.
4. Check your credit score. If you have a blemish or need to build it up, work on paying bills on time, in full, every time. Close unused credit cards or other form of debt.

Now let’s dive into the three big questions we mentioned at the beginning.

Question 1: When was the last time you reviewed your accounts?
Looking at your accounts on a monthly or quarterly basis is a great financial habit. A few action items:

• Check your statements for unauthorized or unrecognized transactions
• Identify preauthorized debits and cancel things you really don’t use

Question 2: What are you saving for?
Saving in general is great, but having specific goals and seeing progress as you work towards them is even better. You likely want to save for retirement, go on vacation, buy a new home, have an emergency reserve, etc. Once you’ve established what you’re saving for, it’ll be easier to make sacrifices when you really need to.

Here are two ways to get and stay on track in 2026:

1. Get organized: Some folks like to have more than one account; others have a spreadsheet or app that tracks progress. Either way, keeping track and visualizing your progress is important.
2. Build on your success: Investing what you save will help compound your success. For short term savings, you’ll want to take less risk, so a savings account with low interest is probably a good bet. But for longer term goals, investing will bring you higher returns. Your best bet is to speak to a financial advisor or licensed professional for tailored advice.

Question 3: Do your spending habits need an audit (or an edit)?
More of a statement than a question here, as it’s a great way to better understand your financial habits and motivations. Start by reviewing your last three months of credit card and bank statements. Pay attention to spending patterns and see if you notice anything you’d like to improve on. Maybe you want to eat out less, ban yourself from Sephora… whatever your vice is, take note of it.

Another aspect of a successful edit is improving your own financial literacy. Pick topics you’re interested in and listen to a few podcasts or videos. A few to consider:

• Maximizing different types of investment accounts
• Asset classes (fixed income, equities, commodities)
• Alternative asset classes (real estate, collectibles, cryptocurrencies)
• Compounding interest (both on debt and investments)

Improved financial literacy = more informed financial decisions.

As we wrap up this discussion on financial resolutions, here’s one last piece of advice: take the emotion out of your finances. Identifying your goals, improving your knowledge, and setting up a plan to succeed will take your goals to the next level.

A DIY Holiday: Creative Ideas for Homemade Gifts

These days, a homemade gift is a real treasure. The ideas below require a few crafting basics, small (mostly online) purchases, or thrift store trips – but they’ll leave great impressions on any recipient! If you try any of them out, I’d love to see a picture of the results!

1. Clay Magnet Sets: Get some white air-dry clay and a few basic colours of paint from a craft store or online. Roll the clay out to 1-2cm thickness and use cookie cutters to punch out shapes. Paint the shapes as ornaments, snowflakes, trees, or whatever other festive items you like. If you want a durable finish, you can seal the dried and painted clay with a coating like varnish, mod podge or acrylic sealant. Once dry, super glue some strong magnets to the back. Make as many sets as you want to give!
2. Custom Potato Prints: Make a custom stamp out of a potato and look out world! All you need to do is cut a potato in half and carve the inside to the shape you want (a star, tree, holly, stocking, whatever). Make it easier by using a cookie cutter and punching an outline in the half-potato – then cut off the excess. Get some paint and use your potato stamp on anything from a canvas tote bag to denim to blank cards. Or, make custom wrapping paper by stamping the large sheets of crumpled paper from your last online shopping order.
3. Teacup Candles: Get yourself a candle making kit – which needs to include wax, wicks, and a melting vessel at minimum. Pillage your unused China cabinet or visit a thrift store and pick out some teacup and plate sets (or other mugs or jars you want to use). Finally, you’ll want some dried herbs, dried flowers, essential oils, or other candle enhancers. Once you have everything, melt the wax in the vessel using a double boiler method. Dip the wick into the wax and stick it to the bottom of the teacup. Pour the melted wax into the teacup and add your scents or whatever else you’re using – stir gently. Leave it to firm up for 24 hours, trim down the wick if it’s too long, and you’re ready to wrap these up!
4. Hand Painted Bottle: Upgrade the classic wine gift by painting the bottle itself! You can use some basic craft paints and brushes (from a dollar store, craft store, or Amazon) and design a beautiful pattern of holly, a string of lights, a winter scene, write their names, a nice message, or whatever else you want. This small gesture will make your gift instantly more memorable and is still a great consumable for the person who has everything.
5. Homemade Bath Bombs: Get a silicone mold in a cute shape. Combine 1 cup baking soda, ½ cup each of Epsom salts and citric acid, scents (like ground cinnamon or ginger by the teaspoon, or essential oils a ½ teaspoon at a time), and 2 tablespoons of melted coconut oil. Combine the ingredients, using a spray bottle with water to gradually moisten the dough until it forms a dry-ish paste that will hold a shape. Smush it into the silicone mold until the shapes are about ¾ full and let them dry for 24 hours. Pop the shapes out, package a few together, and you’ve got a great gift!

Economic Insights from Dr. Sherry Cooper

The Canadian housing market is showing a cautious recovery, though regional differences remain stark. Affordability has improved slightly as mortgage rates ease, yet high prices in major cities continue to shape buyer behaviour.

Regional Conditions
• BC & Ontario (Buyer’s Markets):
These remain the least affordable provinces, with softer sales, declining prices, and slowing condo construction due to weaker investor demand. Ontario’s slowdown is further pressured by U.S. tariff impacts.
• Alberta (Balanced):
Construction is easing from previous highs but remains stable. Prices are steady, driven mainly by resident buyers rather than investors.
• Quebec (Balanced, Fast-Growing):
Prices are up 8.2% year-over-year with strong sales. Momentum is expected to continue into 2026.
• Prairies – SK & MB (Seller’s Markets):
Low inventory and strong job growth are driving significant gains. Saskatchewan is expected to close out the year up 9.3% and Manitoba up 7%.
• Atlantic Canada (Seller’s Markets):
Nova Scotia, New Brunswick, and Newfoundland continue to outperform with 5%–10% price gains fueled by steady demand and limited supply.

National Trends
• Home sales expected to fall 1.1% in 2025, driven by softness in BC, AB, and ON.
• National average price projected to decline 1.4% to $676,705, largely due to BC/ON weakness.
• Outside those provinces, most regions are seeing 4%–9% price growth.
• Market tightness in Quebec, the Prairies, and Atlantic Canada is helping maintain price strength.
• A rebound is anticipated in 2026, with prices rising 3.2% and sales climbing more than 7%.

What’s Driving the Market?
• Slower population growth due to reduced immigration levels.
• Lower mortgage rates and updated lending rules.
• Declining investor activity, particularly in due to the condo crisis in Toronto and Vancouver.

Provinces Poised for the Strongest Price Growth in 2026

The strongest gains are expected in regions with tight supply, strong in-migration, and better affordability – specifically Saskatchewan, Manitoba, Quebec, New Brunswick and Nova Scotia all have over 5% projected growth. In BC and Alberta, you can expect normalizing market conditions without nominal growth, if any at all.

Demographic Trends Behind 2026 Growth

A wave of interprovincial migration is reshaping the housing map. Canadians are moving from high-cost provinces like Ontario and BC toward more affordable regions such as Saskatchewan, Manitoba, and Atlantic Canada. Even with reduced immigration targets, newcomers continue to add pressure to family-oriented markets—especially in Quebec and the Atlantic provinces. Younger buyers and families are gravitating to provinces with better affordability and job prospects, while retirees are increasing demand for accessible, lower-cost housing. Persistent supply shortages in these fast-growing regions amplify price pressures.

And that’s a wrap for December! Wishing you and yours all the best this festive season. Happy holidays!

If you’d like to be added to my distribution list, send an email to mike.bohte@dominionlending.ca

You can apply online today by visiting:
https://velocity.newton.ca/sso/public.php?sc=t675zfpk48mb

You can download my mobile mortgage app in the App Store/Google Play or by visiting:
dlcapp.ca/app/mike-bohte

Welcome to the November issue of my monthly newsletter!

Welcome to November – less commonly known as the anniversary of Pharoh Phever. Let me explain. King Tut’s tomb was discovered on November 4, 1922, by British archaeologist Howard Carter. After years of searching, his team found a step in the bedrock, that led to a staircase, and eventually to the sealed door to the tomb’s entrance. The tomb contained thousands of artifacts, including gold-covered chariots, jewelry, shrines, and Tutankhamun’s solid gold mask. And as you can imagine, it was huge news, capturing the world’s attention and leading to a frenzy of interest in Ancient Egypt. They may not have had the term Pharoh Phever at the time, but they sure could have used it!

Keys to Their Future: Helping Your Kids Buy Their First Home

Although some things stay the same, the housing market isn’t one of them. If you’re in the thick of things with your adult children trying to buy a property – could you imagine paying the average 2025 Canadian home price of $678,331?!

There’s truly a housing affordability crisis happening right now and it’s taking the biggest toll on new home buyers trying to enter the market – your kids. If you’re looking for options to help them with their home purchase, this article is for you.

The housing crisis your kids are facing isn’t just out-of-reach prices. There’s also stricter mortgage qualification guidelines (including the stress test), unemployment exceeding 7% in Canada in 2025, the growing gap between salaries and home prices, and a volatile condo market in Vancouver and Toronto – to name a few. So, here are a few ways to overcome the home-ownership barriers of 2025 and beyond.

1. Financial Assistance: If you can afford to give your kids cash for a down payment, that’s great. There’s no minimum or maximum amount you can give them. You’ll need to make sure it has been in their account long enough or write them a gift letter or show proof of funds if not.
2. Co-signing the Mortgage: If you’re still working or have sufficient income from other means, you can consider taking joint financial responsibility for a mortgage. The point is to improve their debt-to-income ratio so they can get approved for a mortgage that their own income doesn’t allow for.
3. Early Inheritance: One trend that’s gaining momentum with the baby boomer generation is giving your children their inheritance early. It’s a plus for parents who get to see their kids enjoy it or help them when they need it more. You’ll have to do some financial forecasting for this to work.
4. Reverse Mortgage: If the above aren’t great options for your family, and you own your own home, you could consider a reverse mortgage. This would give you a lump sum or monthly installments of cash which you don’t repay until you sell your home.
5. Increase Credit Score: This is an indirect route, but a higher credit score has material benefits. It makes lenders more apt to provide financing, and can get the owner a lower mortgage rate. And of course, a lower rate means lower payments, and an easier time qualifying for a mortgage. Making sure they have bills in their name (like the electric bill) that are paid in full every month helps establish their credit worthiness.
6. Pay off Debt: Even if you can’t cover the downpayment on a home, you can get your kids there faster by helping them pay down debt. This will not only free up room for saving, but it will also improve their debt servicing ratio and give them more room to borrow for a mortgage.
7. Introduce Me! (Your Mortgage Broker): Letting me take a closer look at their finances and mortgage needs might open a door or bring to light a lender you haven’t thought of. I’m happy to do a review at no charge.
8. Putting a Home In Trust: Here you’d be the one purchasing the home and putting it in an irrevocable trust for your child. This is option makes sense if you want to maintain ownership, if your child has poor credit history and won’t qualify with a lender, or even if they are married and you want them alone to retain the home (in case of divorce). It’s also a strategic method of estate planning if you want your child to (eventually) receive the property and avoid probate and taxes.
9. Joint Mortgage: Here you would each have separate financial responsibilities as part of the home purchase agreement, as outlined in the mortgage. This might be the right option if you want to co-own the home, and will each pay a portion of the mortgage every month.
10. Inter-Family Mortgage: If you have the cash to finance the house, you can loan them those funds and draft a personal mortgage or loan agreement. As it’s not governed by a financial institution, you have flexibility in what the terms of the loan are.

Regardless of how you choose to help, consulting a lawyer or mortgage broker is a good place to start. It can help you understand the legal implications of each option and be sure you’re making an informed decision. If you’d like to explore any of these further, with no cost or strings attached, reach out so we can set up a meeting.

Sleigh Your Budget: Holiday Shopping Without the Financial Hangover

With 50% of people having already started their holiday shopping, there’s no time like the present 😉 to put together your spending guide and working budget.

Why bother? Having a holiday budget is a great way to make sure you don’t overspend and get dragged down by blue Monday when that January credit card bill comes in. It also opens the door to setting bigger financial goals.

How do I start? Setting a realistic overall number is a great place to start. But micro budgeting is where things are really at! Micro budgeting is when you consider how much you plan to spend on each person and for each thing. Drill down to the nitty gritty on what books Aunt Sharon needs and what you want to spend on each one.

Ready to shop? You’ve probably seen and heard a lot of budgeting advice over the years. But these days, social media ads and pressures can be stronger than ever. So, let’s go over a few things before you whip out that credit (or debit) card.

DOs
• Leave your emotions (especially guilt) at home
• Track prices now and watch for sales later this month
• Keep a physical tracker of spending
• Write down everything you buy
• Consider alternatives to material gifts
• Have a gift conversation with anyone you plan to buy for – and talk budget!
• Look at thrift stores or on Marketplace for items
• Consider a group gift exchange rather than buying gifts for everyone individually

DON’Ts
• Use ‘buy now pay later’ offers
• Sign up for store credit cards
• Buy things that aren’t on the list
• Double-buy for one person
• Fritter away your budget on small items
• Feel you must buy gifts for everyone
• Forget homemade gift materials may also cost money
• Buy based on social media ads – research the product and company first

Here’s something else to think about before you shop: What’s the recipient’s love language? If you answered receiving gifts, then a physical present is a perfect way to show you care. But if the answer is quality time or acts of service – maybe your time and money are better spent making a coupon book (for cooking a meal together or a ride home from a night out) or booking a special activity to do together (like a concert or a sleigh ride). And if you answered words of affirmation – making and writing a card will be more appreciated than anything you can put a bow on.

This advice isn’t meant to make you feel guilty about buying gifts. It’s meant to help you come up with a plan and not waste resources. Good luck with your holiday shopping and hopefully you’re able to stay on budget!

Economic Insights from Dr. Sherry Cooper

The outlook for the Canadian housing market in late 2025 and into 2026 is marked by significant regional variation, with some provinces experiencing stability or gains, while others face price pressures and slowdowns driven by high inventories, affordability challenges, and shifting demand. Residential real estate is looking more alive, at least for the time being.

Despite an uncertain economic outlook, homebuying fundamentals have shown clear improvement in some areas.

Below is a breakdown by key regions:

Ontario (including Toronto)
Ontario, especially the Greater Toronto Area (GTA), remains weighed down by an abundance of listings, particularly in the condo sector. Toronto remains the epicentre for price fragility, thanks in part to a condo sector hampered by immigration slowdowns and overbuilding. Although sales activity has rebounded from spring lows (up 36% from March), prices continue to face downward pressure. The average selling price in Toronto fell 5.2% year-over-year to $969,700 in August 2025. Single-family homes dropped 5.6% to $1,184,700, while condos fell 7% to $571,500. By year-end, prices are projected to decline further by up to 4%, with the number of sales also dropping 5%. Elevated inventory and cautious buyer sentiment are keeping market conditions soft, with slightly longer days on market and muted rent growth.

British Columbia (including Vancouver)
Greater Vancouver continues to face challenges from elevated listings and affordability issues. Prices declined approximately 6.3% year-over-year across detached properties and are expected to fall about 10% through late 2025 as both buyers and sellers remain wary. Sales have dropped significantly, and average days on market have lengthened, reflecting hesitation tied to uncertainty over economic conditions and future price trends.

Developers are growing cautious, especially with higher unsold inventory for condos, despite some support from strong rental demand. A mild rebound in housing starts is predicted for 2025, particularly in the multi-unit and rental sectors, but expectations are for only marginal price growth beyond the immediate rebound.

Prairies (Alberta, Saskatchewan, Manitoba)
The Prairies present a brighter outlook:Saskatchewan is Canada’s current hot spot, with average prices up 14% year-over-year in August 2025, reaching $359,379, and Saskatoon up 17%. Tight supply and decent affordability support substantial gains, but moderation is expected as job growth later slows.

Manitoba is similarly buoyant, with average prices up nearly 9% to $395,913 and continued tight conditions signalling near-term gains, though price growth may slow in 2026 as economic momentum ebbs.

Alberta, particularly Calgary and Edmonton, has shifted from ultra-tight to balanced. Sales have dropped and listings have increased, moderating previous double-digit gains. Province-wide, the market remains a seller’s market, but price growth has slowed, with some small declines expected if demand remains tepid.

Quebec
Quebec’s market is relatively strong, with home resales up 14% in 2025 and modest price gains supported by tight supply despite a recent small slip month to month. Balanced conditions are expected to persist in 2026, although not at the pace of the past year.

Atlantic Canada
Markets such as Prince Edward Island and Newfoundland and Labrador remain brisk, with sales up double digits in early 2025. However, the pace is moderating as price growth has cooled somewhat compared to the post-pandemic surge. Conditions generally favour sellers.

National Trends and Outlook
Nationally, housing prices are predicted to stabilize after the initial rebound of 2025, with slower growth into 2026 as supply and demand become more balanced. Key drivers include:
• Moderating mortgage rates, expanding some affordability by late 2025
• Cautious buyer and seller sentiment, especially in high-priced markets
• Diverging paths: Prairies and Atlantic Canada firm, Ontario and B.C. weak

Expectations for 2026 are for a more balanced national market, with performance closely tied to local economic growth, employment, and inventory dynamics. Most rapid price gains are cooling, but recovery is uneven, emphasizing the importance of monitoring regional fundamentals for any housing or investment decisions.

We expect at least one more 25-basis-point rate hike this year, which will also ease affordability and improve buyer sentiment. There is pent-up demand for housing, boosting next year’s home sales.

And that’s it for November! Thanks for reading and I look forward to connecting with you one more time before the holiday season takes over. And as always, if you have questions about mortgages, I’d love to help. Get in touch any time!

If you’d like to be added to my distribution list, send an email to mike.bohte@dominionlending.ca

You can apply online today by visiting:
https://velocity.newton.ca/sso/public.php?sc=t675zfpk48mb

You can download my mobile mortgage app in the App Store/Google Play or by visiting:
dlcapp.ca/app/mike-bohte

Welcome to the October issue of my monthly newsletter!

PSL (or pumpkin spice latte for the unfamiliar) season is in full swing and love it or hate it, a 20-million-latte-strong annual sales figure (for Starbucks alone!) is a cultural phenomenon. It’s undeniably the flavour of fall in North America, supporting a billion-dollar plus industry and blanketing a massive cross-section of products. Heck, if there was a PSL mortgage, I’d be selling it. Whether you’re picking up that pumpkin party-in-your-mouth beverage to get you through a house hunting expedition, to power you up to replace an appliance at home, or just to enjoy while reading this newsletter – you’re not alone. My question to you is – are you a PSL purist, a seasonal treat sampler, or immune to the pull of the pumpkin altogether?!

Don’t Get Spooked! First-Time Homebuyer Tips for a Smooth Process

Buying your first home – no matter what your age – is a significant life event. It can bring up all kinds of stresses, both financially and emotionally. Being prepared for what’s to come can put your mind at ease. So, as an expert in the process, here are my best tips to minimize stress, and avoid hiccups and surprises throughout the process.

1. Set Limits: Allot a maximum amount of time for house shopping and scrolling on socials, websites, etc. per day. Don’t get overwhelmed by browsing homes for hours on end, listening to everything you hear on social media, etc.
2. Build Your Team: You’ll need a real estate agent you’re comfortable working with, a lawyer to review documents, a thorough home inspector, and a mortgage broker to get your financing in order. It’s okay to meet a few of each profession and make sure you get the right team lined up. Asking for a referral is a great way to find that perfect someone.
3. Get Pre-Qualified & Pre-Approved: Using a mortgage calculator (or downloading my app) will help you determine what mortgage payments and subsequent home shopping budget you’d qualify for. A pre-approval looks more carefully at your credit score and income, giving you an estimate what a bank would lend YOU. A mortgage broker is the perfect person to help you get it.
4. Create a Budget – And Stick to It: Once you know what your downpayment and ongoing mortgage payments will be, you’ve got to also consider the other costs of buying a home (like an inspection, moving, closing fees, legal fees, etc.). Know how much cash upfront you’ll need and don’t overspend leading up to a home purchase.
5. Spend Time in Prospective Neighbourhoods: It’ll minimize surprises about the neighbours and habits of the residents, plus you’ll get familiar with routines like school buses, playground zones, garbage days and more.
6. Lower Your Expectations: Thinking you’ll a home that’s 100% perfect, at the price you want, with no one else bidding on it… well that’s not very realistic. So set out the absolute must-haves, consider what you can compromise on, and don’t get too wrapped up in just one house. Take your time and wait for one that fits your budget and your (lowered) expectations.
7. Monotask: If you’re trying to choose between houses, calculate expenses, hire a mover, rent a carpet cleaner, and declutter your home all at once, you’ll become scattered and ineffective. Instead of multitasking and trying to get everything done at once, pick just one task at a time and work on that exclusively.
8. Try a Daily Affirmation: Choose something “I am making good financial decisions every day to support buying a home” or “I remain optimistic about finding my future home” or “I trust that my realtor is working in my best interest” and repeat it when you feel stress over the purchase, process, or whatever else is bothering you.
9. Enlist a Support System: If you’re feeling overwhelmed, lean on someone for support. That might be your broker if you’re confused about a process or requirement or a friend who recently bought a house to confirm their experience. It might even be your family or friends to vent or a gym buddy to get a stress-relieving workout in. Don’t ignore the stress as it can build throughout the process.

I hope these tips help you with your next home purchase – and please share them if you know someone who’s going through it too!

Go Green: Home Appliance Upgrades to Save Money and Energy

Did you know that appliances and electronics account for up to 23% of the average monthly electricity bill? The biggest culprits are your fridge (coming in at around 4% of the total bill), and your washer and dryer (coming in at around 3.5% of the total bill). We’re all looking to save some cash where we can, so let’s look at some ways to reduce that monthly energy bill from our appliances and electronics.

Option 1: Use Existing Appliances Smarter
Now I don’t recommend unplugging your fridge or wearing filthy clothes – but there are a few ways to get your appliance and electronics energy use down. First up, in warmer months, line dry your clothes to skip the dryer altogether. Next, clean your existing appliances – from the fridge coils to the lint traps, a clean machine is an efficient machine.
For your electronics, turn off your TV and computer when you’re not using them or use a smart power bar to plug them in. I know there’s plenty of us who just close the laptop at 5pm but taking that extra second to turn it off every day adds up. You can also turn down screen brightness and turn off standby modes.

Option 2: Upgrading Appliances
Looking to replace an old appliance with an energy efficient one this year? It’s a great investment in your home, even if you plan to sell in the next few years. The ROI on new appliances is 60-80% – and that doesn’t even include the cost savings you get each month on your bill. If you’re serious about an appliance upgrade, here are the best of the best Energy Star certified products in each appliance category for 2025.

One thing to look for in a new appliance is that Energy Star logo and certification. The logo is that light blue (or black) box with a white star and cursive ‘energy’. The certification is the manufacturer’s assurance that the product meets Federal Government standards for minimum energy performance standards, typically defined as 10-65% more efficient that traditional models (depending on the appliance and scenario). The program is run by Natural Resources Canada and has been in place since 2001.

What About Other Improvements?
Of course, there are many improvements you could make to your home to improve energy efficiency – from upgrading the HVAC system to installing energy efficient windows and doors. In fact, a bigger investment in these areas might be even more cost effective since heating your home accounts for the biggest portion of the average energy bill by far. For those of you who’ve gotten a CMHC insured mortgage in the past 2 years there’s an even bigger incentive to take the plunge. If you’ve upgraded your appliances in that mortgaged home, you can submit an application to the CMHC to get up to 25% of your CHMC insurance fees back! Read more details on that program or give me a call to discuss.

Economic Insights from Dr. Sherry Cooper

Reports from local real estate boards and incoming data indicate the number of homes changing hands continued to increase from this year’s lows posted in April. The August data suggest that national home sales have risen for the fifth consecutive month. However, location is everything in the housing market, and the pace of sales varies widely across the country.

Hardest hit by unaffordability and condo overbuilding, the extended GTA—The Golden Horseshoe — suffered the most in the downturn and is expected to suffer the most from the US tariffs. The auto and steel sectors have already endured substantial layoffs, and household surveys suggest that the fear of being laid off in the next year has risen meaningfully.

Parts of BC have also seen a decline in activity, with prices falling, but not to the same extent as in Ontario. Balanced, if sometimes tight, conditions are driving property values higher in most of the Prairies, Quebec and parts of Atlantic Canada. In contrast, high inventory is depressing values in Ontario and British Columbia. Toronto experienced what we believe will be a temporary pause in August, following its gradual upturn.

These developments are in line with our view that rebuilding market confidence will support a slow recovery in the second half of 2025 and set the stage for stronger demand in 2026. There is pent-up demand for housing, and sellers are motivated. Many have been on the market for months, and reality has seeped in. Prices have fallen.

Local data shows that the MLS Home Price Index has fallen again in Toronto, Hamilton, Calgary, Edmonton, the Fraser Valley, and Vancouver—all of which are being weighed down by abundant inventory.

Strong construction has contributed most to the inventory build-up in Calgary and Edmonton.

The Toronto area took a breather in August after four months of solid advances. Home resales dipped slightly by 1.8% from July, seasonally adjusted, with continued softness in condos weighing on activity. Resales were up 2.3% year-over-year.

Falling interest rates, recent price drops, higher inventory and easing trade war concerns will gradually drive up activity.
The mild and broad price correction continued last month. The area’s composite MLS HPI edged 0.1% lower from July seasonally adjusted to $978,100—extending a year-long downtrend.

The condo price index fell the most, -7% from a year ago, but all categories saw a correction, including single-detached family homes (-5.6%).

We expect property values to continue falling while the market regains a firmer footing. But, affordability—while improving—will remain a big issue.

The economic backdrop shows signs of stress as labour markets have weakened and excess capacity is rising. The two most recent labour reports showed employment losses in both July and August, totaling more than 100,000 positions, while the jobless rate hit 7.1% last month, up by half a percentage point since January. The economy contracted by 1.6% in the second quarter—the most significant decline since the pandemic — reflecting a considerable drop in exports. Business investment is also weak, as is residential construction.

Recent economic weakness will likely outweigh the bank’s concerns about firm core inflation over the past few months. A broad range of underlying price pressures showed some cooling.

The average of the Bank of Canada’s two preferred core measures decelerated to 3.05%, from 3.1% in July. The three-month moving average of these core rates held steady at 2.52%.

Shelter inflation slowed to 2.6%, while CPI excluding food and energy decelerated to 2.4%. CPI excluding eight volatile components and indirect taxes held steady at 2.6%. Still, the share of components within the consumer price index basket that are rising by 3% or more — another key metric closely watched by policymakers — rose to 39.1%, from 37.3% in July.

The Bank of Canada cut the policy rate by 25 bps on September 17, taking the overnight rate to 2.5%–half the level posted at the high of 5%. The central bank is likely to cut rates one or two more times this year. The Governing Council meets again on October 29 and December 10.

And that’s a wrap for October! I hope you all have a candy-filled spooky season and manage to sort out your costumes before the 31st. Happy Halloween and see you back here in November.

If you’d like to be added to my distribution list, send an email to mike.bohte@dominionlending.ca

You can apply online today by visiting:
https://velocity.newton.ca/sso/public.php?sc=t675zfpk48mb

You can download my mobile mortgage app in the App Store/Google Play or by visiting:
dlcapp.ca/app/mike-bohte

Welcome to the September issue of my monthly newsletter!

September is a polarizing month – back to school and the end of summer but also the beginning of fall and pumpkin spice everything season. And honestly, this month’s newsletter articles are polarizing too. When looking at the fall housing market, experts are polarized in their predictions on market conditions. And when it comes to a financial audit, deciding what spending mistakes you’ve been making and how to make changes might be polarizing too!

So, enjoy the articles, and here’s hoping we have more sunny days before the month races to an end.

The Fall Forecast: Cooling Temps, Hot Market Moves

Fall 2025’s real estate market theme is perhaps best summed up as “wait and see”. The spring market was flat. Experts have mixed reports about the national average home prices for the remainder of the year. Most (CREA, CMHC, etc.) predict a drop between 1.7-3.2%, but Royal LePage is an outlier still echoing their early year prediction of 3.5-5% price increase.

There are some notable regional differences. In Alberta, Saskatchewan and Quebec, they could see sales at historically high levels and faster price growth. Big Ontario and BC market declines are overshadowing these numbers and lowering the national average.

Biggest factors in the home-buying market this fall
1. Affordability: the high cost of living – especially buying a home – is more than many new buyers can afford. The average MLS price for a home currently nearly $680,000. Homebuyers need big down payments, longer term loans, and will pay much more interest over the lifetime of the mortgage – none of which are appealing. Many are saying no thanks.
2. US trade disputes: 49% of prospective buyers have chosen to hold off on a purchase because of impending tariffs and their ripple effects. A resolution could lead to a quick market turnaround, but there’s no way to know what’s coming.
3. Economic cooling: unemployment, slower population growth and a mild recession are all contributing to a slower fall housing market.
4. Rental market: Condo completions are surging, flooding the market and finally cooling off demand. People have more rental options, with potentially lower rates, which negates the need to buy. Also of note is slower household formation, meaning fewer people are looking to move out of their parents’ homes and in with their new spouse or partner.
5. New builds: Builders are seeing reduced demand and cutting back production accordingly. Current tariffs are increasing the material costs for new homes, another reason to delay starts. The CMHC is predicting only 226,600 home starts for 2025.

What about rates?

The Bank of Canada has paused interest rate drops since April, which has given potential mortgagees pause. There is still one more rate cut predicted this year which could turn the market around.

Initially, the CMHC was estimating 5-year fixed rates between 5.3-5.7% this year, but with that now out the window and lower rates currently available, the remainder of 2025 is the ideal time to get a mortgage for anyone who doesn’t already have one or imminently needs to renew. With a potential Bank of Canada rate cut looming, variable rates are also still attractive.

Is anyone opting to buy this fall?

Yes! Resale homes are gaining market share, with somewhere between 464,600 and 524,600 homes expected to change hands in 2025.

There are also two main buyer demographics:
1. Millennials: With remote work declining, they need to buy homes closer to their jobs. Urban market resale homes will likely be their prime targets.
2. Renewals: Those needing to renew their mortgages will consider their actual needs vs their existing home. Downsizing to save costs or upsizing to accommodate changing family needs are big factors. This is the ideal time to make a move without (mortgage) penalties.

What does all this mean?

We’ll all be waiting to see what happens. If you want to buy, there is more supply and the lowest rates we’ve seen in a while. If you want to sell, the resale market is your friend. Either way, I can help you work out the mortgage you’re going to need.

Adulting 101: Back-to-School Budgeting for Real Life

If it’s time for you to stop rearranging the deck chairs on the Titanic and start a purposeful financial audit – I’ve got you. Here we’re going beyond gathering statements, categorizing expenses and hoping to reduce spending. I’m going to give you the motivation to take action by looking at the WHY, WHAT, and HOW to get you into a different mindset with better results.

Why do a financial audit?

Auditing your finances is all about identifying how you’re spending your hard-earned cash. An audit works because it uncovers money pits you didn’t realize you’d fallen in, and gets you thinking about your financial goals. An audit will:
• Identify overspending patterns
• Calculate the true cost of ownership of items like a vehicle, your home, etc.
• Catch any fraud or transaction errors
• Pinpoint areas of spending to limit or reduce
• Highlight items you’re automatically paying for but not using
• Reallocate resources to higher priority items
• Help you meet life goals that require money (like a degree, a home or the trip of a lifetime)

So, if that sounds good, it’s time to get started. What you need to ask yourself during an audit:

To get your finances on track, first get to the root of your current spending. Here’s what to ask yourself:
• What are your goals for your earnings?
• What are your life goals?
• How much do you *think* you spend vs how much do you *actually* spend on things like entertainment, shopping, and other non-essentials?

Sometimes the biggest shock of a financial audit is how different your expectations are from your reality. So let’s now figure out what you should still spend money on, and what you shouldn’t. Here’s what to ask yourself:
• What spends bring you the most joy?
• What items could you skip or cut back without much negative impact?
• What spends contribute towards your life and financial goals?

You probably can’t afford (and don’t need) everything you feel like spending money on. You’ll have to make choices. A financial audit shows your financial pitfalls and puts those spending traps into perspective against your goals.

How to stay committed:

You found a reason to conduct this financial audit, figured out what spending to cut back on, and now it’s time to action your findings. How? Step one is to set both short and mid term goals in specific time frames and reward yourself when you achieve them. SMART goals never looked better.

If it works for you, find a free app to track your card taps, and set alerts so you know immediately when you’ve gone off track. If that’s not for you, here are more strategies on how to stay committed and accountable:
• Make a visual of your goal – print a picture, make a vision board, etc.
• Share your goals with someone that will help keep you accountable
• Treat it like the first year of dating – celebrate small milestones, talk about it with your friends, and ignore the sacrifices you’re making
• Distract yourself when you’re tempted to spend – go for a walk, do a craft, get outside, make a puzzle, whatever gets you away from temptation
• Make it a game, like a week-long no-buy or going one month without eating out. You can give it a fun name like ‘dine-in December’ or ‘the week without’
• Make a direct correlation between the amount something costs and the number of hours you have to work to get it. If you earn $40/hour, and something costs $200, you’ll have to work for 5 extra hours to earn it. Is that worth while?

For the times when you’re getting derailed and need some reprieve, here’s how to make that work:
• Try to use up gift cards, store credit or points (like Optimum or Aeroplan) on the out-of-budget items
• Need more cash? Use marketplace or Kijiji to sell things you don’t need or want

Auditing your spending isn’t about guilt—it’s about gaining clarity. With a clear picture of where your money typically goes, and what you’d really like to use it for, you can make smarter choices and set yourself up for future financial success.

Economic Insights from Dr. Sherry Cooper

The Bank of Canada has maintained its target for the overnight rate at 2.75% since March 12. This was the seventh consecutive cut since mid-2024, when the Bank began lowering the rate from 5.0% in response to a potential economic slowdown caused by increased trade tensions with the United States.

Very early in the new Trump administration, tensions emerged as the president threatened to place sizable tariffs on Canadian imports not covered by the Canada-US-Mexico free trade agreement (CUSMA). President Trump has increased tariffs on non-CUSMA-compliant goods from Canada from 25% to 35%, effective August 1.

It is currently estimated that roughly 80% of Canadian exports are CUSMA-compliant, headed for 89% in the coming months. This has kept the lid on the overall tariff burden. In June, 77% of Mexican imports met the trade pact’s country of origin criteria, up from 42% May. Fitch rating service estimates the compliance proportion will rise to 83%.

In addition, there is a 50% tariff for all countries’ exports of steel and aluminum into the US. There is a 10% tariff on non-CUSMA-compliant potash, oil, and gas products. And a 50% tariff on some copper products.

Most important for Amazon shoppers, the US eliminated the de minimis treatment for low-value shipments. Goods valued at $800 or less are now subject to all applicable duties (effective August 29).

Other tariffs are on the table. These include tariffs on Canadian lumber, which would be in addition to the existing 14.7% tariffs, as well as on Canadian dairy products. Semiconductors and pharmaceuticals are also under consideration for tariffs, though no details have been provided.

Reflective of Canadian resiliency, the Canadian services sector is holding up relatively well, but the export-heavy industries such as manufacturing and transportation are bearing the brunt of the impact.

The burning question for the Bank of Canada is how inflationary these tariffs will be. Indeed, some of the tariffs will be passed off to consumers. While theoretically tariffs lead to a one-shot uptick in prices, they don’t necessarily cause inflation—a continuous rise in the general price level.

But, as the latest data for July suggest, while headline inflation remains muted at 1.7% year-over-year, the Bank of Canada’s favoured measures of inflation average 3.05%–too high for comfort. Unless the August CPI data show a marked slowdown in core inflation, the Bank will likely retake a pass on September 17.

On the same date, traders are now signalling that the Federal Reserve will cut rates. I’m not so sure. The US economy is too resilient, and inflation is not close enough to 2.0% for Fed officials to muck around with easing. The widespread expectation that they will ease anyway in September is lifting stocks, and the actual event may cause a stock market melt-up.

The Fed left policy rates unchanged on July 30 for the fifth consecutive confab over the past seven months. The statement’s economic assessment was slightly more downbeat, in line with the data on the ground. The risk assessment didn’t refer to uncertainty as having “diminished”, with the August 1 tariff announcements looming. And, Governors Bowman and Waller dissented in favour of a quarter-point rate cut. The vote was 9-to-2, with Governor Kugler absent and not voting. (Two days later, Kugler announced her resignation.) In the press conference, Chair Powell said: “We see our current policy stance as appropriate to guard against inflation risks. We are also attentive to risks on the employment side of our mandate.

Another key determinant of central bank policy is the strength of economic growth, as reflected in the employment data–a far timelier indicator than the GDP data. For example, while we still haven’t seen the number for second-quarter GDP growth in Canada, we have monthly employment data through the end of July.

This and other leading indicators, such as the stock market, suggest that the slowdown in economic activity has been more moderate than many feared. The layoffs are growing in the hardest-hit sectors—steel, aluminum, autos and parts—the jobless rate for July was steady at 6.9%.

So, the BoC is likely to have another ‘wait and see’ meeting. But the one sector that has declined significantly in the past year is housing. This provides a golden opportunity, especially for first-time and move-up buyers.

Home prices have fallen, and in many regions (GTA and GVA), sellers are motivated. Supply has increased sharply, and multiple-bidding situations are rare. All potential buyers should be out there looking for bargains because everything is on sale (as well as for sale). Finally, mortgage rates are low—yes, low.

We will not see a return to two-handle mortgage rates, barring another global pandemic. And, even then, the central banks would know better than to take rates down so much, for so long.

The July data showed an uptrend in housing activity. We are likely looking towards a relatively strong Fall marketing season.

If you’d like to be added to my distribution list, send an email to mike.bohte@dominionlending.ca

You can apply online today by visiting:
https://velocity.newton.ca/sso/public.php?sc=t675zfpk48mb

You can download my mobile mortgage app in the App Store/Google Play or by visiting:
dlcapp.ca/app/mike-bohte

Welcome to the August issue of my monthly newsletter!

Summer flies by – but why is that?

One reason is the link between time perception and information processing. The more information our minds process, the slower time seems to pass. So, if you’re enjoying time with family and friends, there’s not much new info to process, and time goes by fast. But if you’re bored at work, thinking about the background music, your next meal, the news, etc., that’s a lot to process. It seems like it should take a lot of time to process, so when you check the clock, time seems to have gone by slower.

The moral of this story is – if time goes fast, you’re probably out there enjoying life!

This or That: Selling Your Home Edition?

This month I’ve put together a game of This or That for you. I’m challenging you to not only pick This or That, but also to think about why it’s the better course of action. After you’ve worked through the scenario, read on for the answer and explanation. And let me know how many you got right!

This or That: Underpricing or Overpricing Your Home?

Underpricing is a common strategy in hot markets, since a lower asking price can attract multiple buyers and cause a bidding war. You could end up selling for more than the market value, just because of the demand.

Overpricing deters buyers, your home sits on the market for longer, and it transfers the power to the buyer in negotiations. So, the clear winner is underpricing your home.

This or That: Selling in the Spring or Selling in the Fall?

Selling in the spring means there are a lot more homes on the market at the same time, and typically an active time in the housing market. The US data shows homes sell for 1.6% more than the monthly average in the spring.

Selling in the fall means less competition for sellers, and motivated buyers who want to be in a new place before the snow flies. Your real estate agent will also be less busy and can provide you more attention and better service. So, there’s no wrong answer here!

This or That: Professional Staging, Cleaning and Photography or DIY?

Hiring a professional for every job takes time, coordination, and money – and gets great results. To determine if it’s the right move for you, consider how much more you’d be able to sell your home for. If the costs outweigh the benefits, it might be best to skip this step.

However, don’t forget that pictures of your home are where potential buyers get their first impression of your home. Without good photos and an accessible environment for viewings, a great buyer might not be interested. This one is a toss up – consulting a neutral third party like your agent or neighbour might help you decide elements are needed and what you can do yourself. One pro tip I can offer you is to use ChatGPT (or Copilot, etc.) to help you with staging and décor – just put in the dimensions and ask for the ideal layout with your existing furniture.

This or That: Getting an Inspection Before or After Listing?

If you get an inspection before you list, you’ll be able to get a full and unbiased review of your home. You can choose to fix any issues, or list as is with a clear picture of your home. You won’t be surprised or blindsided by a buyers’ inspection coming up with issues, you can list the property at the correct price, and you’ll be in the driver’s seat during negotiations.

Letting the buyer have an inspection saves money but gives them the power to negotiate. The better course of action here is to inspect pre-listing.

This or That: Renovate to Increase Your Home’s Value or Leave As-is?

Homeowners often complete expensive renovations before selling their home – but frequently don’t make their money back when selling. The new owners may have different tastes, or other plans for the layout or the home (including demolition!). Not only do renovations take time, but they may also require permits, inspections, or approvals. Overall, renovations before you sell are not financially beneficial.

However, some repairs are critical to selling your home. Things like a leaking toilet or a hole in the drywall could easily deter a potential buyer and lower the value of your home. The best course of action here is to complete essential repairs so that the home is ready for immediate occupancy – but not spend money on extra renovations.

This or That: Using a Real Estate Agent or Listing For Sale By Owner (FSBO)?

If you go the FSBO route, you take on all the stress and legal responsibility of research, showing, legal documentation and more. The main reason people choose this route is to save on the commission costs of selling a home.

The benefits of using an agent are plentiful, like getting the pricing, staging and photography right. You can also rely on them for all the paperwork. If a plot twist comes up, they’re there to help. You can also benefit from having your home listed on their website and their social media accounts to get your property more visibility. The winner for the average person is to use an agent.

This or That: Requiring Notice in Advance or Showing Anytime?

Keeping your home clean, tidy, and free of people and pets so that it’s ready for a showing is a real challenge for sellers if they’re living in the home they’re trying to sell. But for buyers who are already in the neighbourhood, inflexibility to view your home might discourage them from coming back. That means missed opportunities to sell and maybe even a lost sale.

There isn’t a clear winner here, but being as flexible as possible with potential buyers creates the most opportunities for a sale.

This or That: Emotions and Instinct or Advice and Numbers?

This might sound like an easy one – but not so fast! The highest bidder might not be the person you want to sell your home to. Imagine you received a thoughtful letter with an offer explaining how the buyer pictures raising their children in your home – vs more money from a developer who plans to raze the property.

However, you need a cool head during important negotiations. A few issues are likely to be uncovered during the home inspection. No home is perfect, so don’t let a request for minor repairs derail the deal. The winner here is a balance of emotions and numbers – and each reader will need to find an equilibrium they can live with.

Summer BBQ Tips

There’s no denying that summer = BBQ season in Canada. And with 78% of Canadians owning a BBQ, it might just be Canada’s favourite summer pastime! With that in mind, you might find yourself grilling the same thing week after week. To keep your barbeque game on point, here are a few grilling suggestions.

Produce
• Romaine: Halve a head of romaine lettuce and peel off the outer couple layers (or just buy romaine hearts). Baste them in cooking oil, salt, pepper and herbs. Char each side and serve as is; or chop it up and make a Caesar salad with it. Should take about 8 minutes to grill.
• Pineapple: Mix equal parts melted butter and brown sugar; add cinnamon to taste. Spear pineapple cubes onto kabob sticks and douse them in your butter mixture. Grill for about 8 minutes.
• Avocado: Halve avocados and remove the pits. Squeeze a lime over the insides then brush them with olive oil and salt. Put them on skin side up and barbeque for about 5 minutes.

Seafood
• Lobster tails: Mix lemon juice, olive oil, salt, paprika and garlic powder. Score and coat your lobster tails, then grill for about 5 minutes per side. Baste throughout grilling for more flavour.
• Shrimp: Marinate your shrimp in a combo of olive oil, cilantro, lime, garlic, tequila, salt and cayenne pepper for 30-90 minutes. Skewer the shrimp and cook for a couple minutes per side or until pink.

Dessert
• Banana splits: Slice a banana lengthwise and stuff with chocolate chips, mini marshmallows and cinnamon toast crunch cereal. Wrap in foil and put on the grill for about 5 minutes.
• Brie: Put your wheel of brie into a cast iron skillet and score the top. Top with honey, olive oil, and either fruit or wine and place the skillet on the grill for about 10 minutes. Serve with crackers or grilled bread slices.
• Grapes: Prepare a marinade of olive oil, balsamic vinegar, chili flakes and crushed garlic and soak the grapes for 10 minutes. Skewer and grill for 1 minute, turning halfway through. Let the grapes sit in the same marinade for 10 more minutes while they cool. Serve as is, with ice cream, or even burrata.

DYK there’s more to grilling than just the food?! The grill itself matters, so give your BBQ a cleaning every few uses. And barbequing should be fun, so don your wildest apron and keep your camera handy to take pictures of those perfect char marks. Post it on social and tag me so I can keep up with your barbeque greatness all month long.

And that’s it for August! Enjoy the rest of the summer, and I look forward to catching up with you when the kids are back in school next month.

Economic Insights from Dr. Sherry Cooper

Most market participants did not expect the Bank of Canada to cut rates in late July. Incoming economic data paint a somewhat stronger picture. Consumer sentiment remains relatively weak in the face of considerable tariff uncertainty, despite the record highs achieved by both the US and Canadian stock markets.

Business investment has slowed considerably, and layoffs have commenced in the hardest hit sectors (think autos, aluminum and steel).

Longer-term interest rates have risen considerably since March, and housing activity remains tepid in many regions of the country. The recently released June housing data show a continued rise in sales, a fall in new listings, and flat home prices. This could well signal a turnaround in housing as we approach 2026.

While Canada’s employment report was not quite as strong as the rip-roaring headline 83,100 job gain would suggest, it nevertheless reflects the resiliency of the Canadian economy. Specifically, the pullback in the unemployment rate (down 0.1 ppt to 6.9%) is very encouraging. It’s rare for the jobless rate to retreat, even for a month, during a recession. Moreover, the unemployment rate is arguably the most reliable data point in the monthly Labour Force Survey.

June’s jobs report showed that public administration employment continues to grab an increasing share of the job market. Since 2016, public administration employment has increased by almost 40%, or more than twice the growth seen in the rest of the job market.
Note that we use ‘public admin’ here, not the ‘public sector’, since the latter encompasses healthcare and education jobs as well. While the pandemic widened the gap, public administration has been outpacing job growth both before the disruption and after 2022.

Looking ahead, this source of job growth is likely to diminish, as federal hiring is expected to slow down. The Liberal platform targeted $13 billion in savings from “government productivity” by FY28/29, and some of that is presumably going to happen sooner due to more immediate budget pressure. We are likely to see Canadian federal budget deficits of over $60 billion.

The latest inflation data for June torpedoed the Bank of Canada’s potential easing on July 30. Headline CPI inflation posted a 1.9% year-over-year pace, up from 1.7% in May. More onerously, the core measures of inflation averaged 3.1% year-over-year gains, much too high for the Bank’s liking.

If you’d like to be added to my distribution list, send an email to mike.bohte@dominionlending.ca

You can apply online today by visiting: https://velocity.newton.ca/sso/public.php?sc=t675zfpk48mbYou can download my mobile mortgage app in the App Store/Google Play or by visiting:
dlcapp.ca/app/mike-bohte

Welcome to the July issue of my monthly newsletter!

Welcome to July, the month of the festival here in Canada! There’s something for everyone, from the Calgary Stampede to Caribana in Toronto and Shambhala in Salmo or even Just For Laughs in Montreal. Or maybe you’re dreaming of getting away from it all – making this newsletter perfect for you!

This month we’re covering vacation homes and backyard projects, both of which will help you escape and unwind.

This month’s fun fact: Did you know both the lightbulb and insulin were invented in July (in 1874 and 1922 respectively) – right here in Canada?

Dreaming of a Vacation Home? Here’s What You Need to Know.
If you’re interested in buying a vacation home, there is a lot to consider. A good first step to purchasing any vacation home is to think about your 5- and 10-year plan.

Will you get enough use out of it?

Do you have other more immediate or important financial goals?

What’s the opportunity cost?

If you’re set on the vacation home, but don’t plan on paying cash for the property, the next step will be to plan how to finance it. Here’s what to ask yourself:
• Do you have enough saved for a downpayment? A second property could need anywhere between 5-20%+ downpayment. Some factors to consider are if it’s winterized, mortgage insurance requirements in relation to the purchase price, etc.
• Can you afford the purchase? Your income will have to be such that you can take on the additional debt, so consider calculating your debt servicing ratios and see how much room you have within your current situation. Use 39% for GDS and 44% for TDS ratios as the maximum to secure funding from a bank.
• Will the location/property be eligible for financing? Remote locations or properties outside Canada may not qualify for a mortgage, so you might need to get creative.
• Will it be owner-occupied or an investment property? Depending on who lives in or uses the dwelling, there will be different mortgage and tax implications.

If you’re in a good place to move forward with purchasing a vacation home, the next step is selecting a location. A few considerations:
• Current and future development of the area
• Municipal services available
• Transportation to and from your property
• Long term property value
• Seasonal access issues

Another big factor in purchasing a vacation home is deciding what will happen to it while you’re not there. Will you rent it out? Will you have a property manager? What’s needed to keep the insurance valid on the property?

If you’re not sure about any of what you’ve just read, a great first step is to get in touch! As your mortgage broker, I can help you calculate your debt servicing ratios, determine what you’re eligible for, and come up with creative financing solutions if needed. We can look at second mortgages, reverse mortgages, and other options to get you into the property of your dreams.
Summer Backyard Projects

Summer in Canada goes by fast! Make the most of it by spending time in your outdoor space. There are plenty of projects you can undertake to help you enjoy the space you have even more, whether it’s a small patio or a big yard. Here are some suggestions!

For Patio Space Only:
• Add tiles to the concrete flooring for a grass, panel or wood look
• Install a pull-down movie screen (or get a folding stand) and add a mini projector to watch movies outside
• Get some planters that hang over your railing and grow an herb garden
• Give it some pizazz by wrapping twinkle lights around the railings
• Furnish with a baby-que to maximize BBQ season and your space might have something that strikes your fancy)

For Small Yards:
• Add small-footprint and storage-friendly games like axe throwing or a mini putt hole for some fun
• Buy a heating lamp for your seating arrangement and make nights more enjoyable
• Build or install a garden box and grow tomatoes, cucumbers, or other veggies
• DIY a bird bath from glassware – a vase, a platter and some crazy glue are all you need to make a pedestal style option (and you might already have everything you need at home!).

For Big Yards:
• Build a catio (cat patio for those not yet in the know) for your feline friends to enjoy the outdoors safely
• Install a permanent fire pit with stones, a fire ring, and even smoke prevention cutouts
• Pave or tile a seating area for outdoor dining and entertainment

I hope you’re able to get outside and enjoy the nice weather while it lasts. See you back here in August!

Economic Insights from Dr. Sherry Cooper
Canadian economic data have come in weaker than expected since early May. Despite this, markets are not looking for another rate cut in July unless core inflation falls meaningfully. Amid a sizeable trade shock, lingering uncertainty, and a potential war with Iran, the economy’s growth outlook is softer than most forecasters predicted a year ago

The unemployment rate continues to rise, consumer confidence plummeted in the spring and hesitancy around business investment remains. Despite aggressive easing by the Bank of Canada, housing remains wobbly.

The BoC began lowering interest rates well ahead of many global peers, with a significant 225 basis points of monetary policy easing already in the pipeline. Yes, the BoC was unnerved recently by firmer-than-expected inflation in April. But, critically, that upward surprise likely had more to do with resilient consumer spending, particularly on non-housing-related discretionary services, than with the impact of tariffs.

We also expect a limited impact on inflation from Canada’s retaliatory import tariffs, which means that monetary policy will remain flexible and act as a traditional buffer for the economy. The central bank will need to consider potential additional support that could come from government spending, but overall, it has the room to cut interest rates further if needed.

There are two streams of fiscal support in play in Canada that produce upside risks worth monitoring.

First, Canada maintains meaningful capacity to buffer against economic shocks if required, regardless of the political landscape. Government net debt levels are still low relative to the size of the economy compared to other advanced economies. That is less true compared to the shrinking number of triple-A-rated economies. Still, provincial and federal governments have signalled willingness to step in and support trade-impacted sectors if needed.

This fiscal room provides an important backstop for the economy that shouldn’t be underestimated, particularly compared to its global peers (and the US). Moreover, it is a shift from earlier this year when it appeared Canada might need to buffer a trade shock alone. Now, global peers are engaged in fiscal expansion that helps to maintain Canada’s relative fiscal place.

A formal spending plan has yet to be presented by the newly elected federal government, but there has been movement on a range of items that can provide support to 2025-2026 growth. Action on interprovincial trade barriers could pay long-run dividends, helping to support investment and productivity growth. Tax deferrals, loan programs, and employment insurance measures are available to help trade-related sectors through shorter-run disruptions. And now announcements related to defence could add significantly to growth in 2026.

Second, the US-induced trade shock has turned global attention towards the needs of the global economy in the future, and which countries are best equipped and positioned to support them. Canada’s resources—agriculture, energy, and critical minerals—are increasingly well positioned to support the needs of the global economy, particularly as it seeks to expand AI/data and defence spending.

Canadian exporters appear to be less targeted with specific US tariffs, but they are still tied to the performance of the US economy, particularly in the heavily trade integrated manufacturing sector.

This was a problem for Canada in the immediate aftermath of Liberation Day on April 2. Broad-based global tariffs imposed by the US on all of its trade partners raised the risk of a US recession and, therefore, a Canadian one. However, the de-escalation of US tariffs supports a slow but resilient outlook for the US, improving Canada’s prospects as well.

Problematically, the US’s resilience still appears to mostly come from the exceptionally large government budget deficit and household spending on services with little direct Canadian import content.

In the US industrial sector—where trade ties are much closer—manufacturing employment was down 0.7% year-over-year in May. Early data on job openings shows hiring demand continues to slow as aggressive tariffs on most of the world push costs higher, adding to uncertainty. Still, we do not expect a US recession this year, and that is good news for Canadian exporters who are still, in most cases, able to access the US market duty-free.

The Federal Reserve remained on the sidelines this month despite repeated demands for a rate cut by President Trump. In recent meetings, inflation concerns have precluded the FOMC from reducing rates, although the ‘dot-plot’ portends two rate cuts this year.

In a recent speech, BoC Governor Macklem held to the script, saying that inflation is a threat. He concluded, “My colleagues on the Governing Council and I agreed there could be a need for a further reduction in the policy interest rate if the effects of US tariffs and uncertainty continued to spread through the economy.” But, the latter is still a big “if” in the BoC’s mind. We’ll get two more CPI reports before the July decision (the May report is out next week), and they’ll probably need to see two good ones to consider a rate cut. The market is currently pricing in 25 bps of easing by the end of the year.

“If the current tariffs and counter-tariffs remain in place, historical experience suggests passing through about 75% of the costs of tariffs over roughly a year and a half,” he said. Macklem confessed that underlying inflation is “firmer” than expected, and “If the recent firmness in underlying inflation were to persist, it would be more difficult to cut the policy rate.”

That said, he admitted that the Bank’s preferred measures of inflation (trim and median) “may be exaggerating a little bit” to the upside. Macklem also underscored the negative structural shock Canada must deal with in an increasingly uncertain world. The takeaway from these comments and the recently released BoC minutes was that the Bank is biased in cutting rates again if inflation comes back down and unemployment keeps climbing. How much or how soon is anyone’s guess.

Housing activity continues to disappoint even as the May data showed a modest uptick in sales. New listings have surged, increasing the inventory of unsold homes, particularly condos in the GTA and, to a lesser degree, British Columbia.

The Bank of Canada expected to cut rates further before the end of the year – and with the occasional encouraging sign of progress in US-Canada trade talks – hopes are high that more buyers will step off the sidelines soon.

Bank of Canada governor Tiff Macklem described Prime Minister Mark Carney and US President Donald Trump’s agreement to finalize a new trade & security deal within 30 days as “very welcome news.” However, he also flagged the continuing risk posed to the Canadian economy if tariffs remain in place.

We expect housing market confidence to gradually rebuild as tariff de-escalation lifts some of the uncertainty that hindered activity earlier this year. Still, a tepid labour market and rapidly falling population growth will likely continue hindering short-term market prospects.

Our growth forecasts have been moderately upgraded for the US and Canada. Changes to the Canadian outlook were primarily driven by an increasing likelihood that additional government fiscal deficit spending will add more significantly to growth tailwinds later this year and into 2026.

Canada is also the US’s largest exporter of steel and aluminum products. Existing excess domestic capacity in the US (often at much higher costs) could help but won’t nearly be enough to fill the supply gap. That means the cost of additional levies will more likely be paid by US buyers than foreign exporters (like Canada).

Canada remains better positioned among major U.S. trade partners as it faces one of the lowest tariff rates thanks to CUSMA exemptions. The first round of trade data post-Liberation Day in April confirmed that nearly 90% of Canadian exports (by our count) continued to access the US market duty-free.

• We have upgraded our Q2 US gross domestic product forecast from 1% to 2.5% annually as we expect a surge in imports in Q1 (a statistical quirk) to reverse. Average growth in the first half of the year is likely a better gauge of economic activities, but it is still slowing. However, the slowing pace is more consistent with the gradual cooling in labour markets than with the beginning of a recession.

• The Canadian GDP growth forecast has been revised higher in 2026 by 0.3 percentage points from 1 to 1.3%. The new Liberal government has announced tax cuts and additional defence spending to meet NATO commitments this fiscal year. Expanded deficit spending will add to GDP growth later in 2025 and into 2026.

• Canadian unemployment rate projections have changed a little. The unemployment rate rose to 7% in May, but early plateauing in job openings suggests hiring conditions have stabilized after softening. It leaves us comfortable with limited further deterioration in the labour market and the unemployment rate to peak at 7.1% in Q3.

• Canadian population growth slowed substantially in Q1 2025, another dampener on housing.

If you’d like to be added to my distribution list, send an email to mike.bohte@dominionlending.ca

You can apply online today by visiting:
https://velocity.newton.ca/sso/public.php?sc=t675zfpk48mb

You can download my mobile mortgage app in the App Store/Google Play or by visiting:
dlcapp.ca/app/mike-bohte

Welcome to the June issue of my monthly newsletter!
There’s so much to look forward to this month – the longest day of the year, warm weather (finally!), and school letting out for the summer, to name just a few things.

Along with the rising temperatures, many people crank their air conditioning. If you’re one of those folks, I’ve got some tips to keep you cool without wasting energy or money. But before you get there, I want to share some advice for all the spring housing market participants – how to find your dream home. Let’s dig right in.
House Hunting Done Right:

5 Steps to Find Your Dream Home
Finding your dream home can seem like a daunting task.
But don’t despair! Here are five actionable steps to set you up for success.

1. Start with the Practicalities: First, figure out your finances. How much have you got saved for a downpayment, how much can you afford on a monthly basis, and what will you be able to qualify for? Download my mortgage app and start running your numbers quickly and easily on your own time.
2. Set Yourself up for Success: If you want to find your dream home, you’ve got to figure out what that is. Make a list of needs and wants in your home, considering things like number of bedrooms, parking, your renovation skills and budget, etc. Also consider anything that would be a deal breaker. Share your requirements with your real estate agent before you start looking at properties. Keep in mind the more requirements you have, the longer your search might take, so be patient.
3. Visit the Area: The neighbourhood might be the most important factor in your home purchase, so be sure to go to the ones you’re considering living in. Check out what’s happening in the area like construction, gentrification, who’s there, amenities, etc. Try to meet some of your potential neighbours and get a feel of what they like and don’t like about what’s happening in the area. You may learn some info that won’t be available in a property listing which could sway your purchase decision, or even find out about properties that could be available to purchase but aren’t currently listed for sale.
4. Gather Information: Ask whatever questions you can about the house, like the history of repairs and upgrades, any outstanding leases or tenants, concerns with neighbours or the neighbourhood, traffic on the street, etc. Be sure to see the property in person at least twice and go at different times of the day so you get as complete a picture as you can of the home and its surroundings.
5. Sell Yourself: Consider that no one has to sell you their home. Writing a letter introducing yourself and explaining your intentions can set you apart from other offers and endear you to the seller. You might end up with more favourable purchase circumstances thanks to your effort. Also be sure to have your financing in order (I can get you a preapproval valid for 120 days) so you have fewer conditions on any offer you make.

When you’re ready to make a move, I’m here for you. Give me a call to help you with the practicalities of financing so you have a successful hunt for that dream home!

Cool and Cost-Effective:
Summer Energy Saving Tips
We all love a nice, air-conditioned home on the hottest days of summer, but no one looks forward to the bill for it.
Here are a few ways to stay cool without shelling out the big bucks!

Tactic 1: Minimize Heat Sources
• Close your blinds and eliminate direct sunlight coming in and heating up a room.
• Avoid placing lamps or TV sets near your room air-conditioning thermostat. The thermostat will sense heat from these appliances and run more than necessary.
• Avoid using the oven on hot days, as your air conditioning will have to go into overdrive to counteract all the heat produced. Cook on the stove or grill outside.
• Skip the dryer and all the heat it produces by hanging clothes to dry

Tactic 2: Lower Your Energy Usage
• Avoid setting your thermostat at a colder setting than normal when you first turn it on. It will not cool your home any faster, but it will work harder than necessary.
• Choose fans over air conditioning as they use significantly less energy. However, turn off fans when you leave the room. Fans cool people by creating a wind chill effect on the skin but have no effect on the temperature of a room.
• The smaller the difference between the indoor and outdoor temperatures, the lower your overall cooling bill will be. Having the temperature set 5 degrees higher for 8 hours a day can reduce your energy bill by 10%
• Unplug electrical items you aren’t using constantly – like game consoles or anything with an LED indicator light or digital clock – as they use power and often generate heat

Tactic 3: Switch to an Evaporative Air Cooler
Evaporative air coolers (or swamp coolers as they are sometimes called) lower the temperature by moving hot air across water. As a fan blows the air across a water reservoir, the air picks up small water particles which evaporate as they are blown away. The evaporating water cools the air nearby the same way drying sweat cools people down.

Here’s what else you need to know:
• Units are portable and can be placed anywhere in your home or moved from room to room as needed
• They are great for dry climates, but not useful in particularly humid environments
• Air temperature can be successfully lowered by 5-15 degrees
• Air conditioners use 90% more energy than an evaporative air cooler so making this switch can drastically lower your energy bill

Economic Insights from Dr. Sherry Cooper
The Trump tariff mayhem has significantly impacted the Canadian economy and financial markets. Since the February tariff threats and the on-again, off-again nature of the policy changes, consumer and business confidence have tumbled while inflation expectations have surged.

Short- and long-term interest rates have increased considerably as bond vigilantes have sold US Treasury bonds for fear of mounting inflation. Another big boost to interest rates is the vast and rapidly growing surge in the US government’s net federal debt to GDP ratio, which will only rise sharply further with the current tax bill under debate in the US House of Representatives.
China has been a primary net seller of US Government bonds, increasing interest rates. No wonder the Fed is reluctant to ease monetary policy, and US rates are at record spreads vis-à-vis Canada.

Canadian labour markets have weakened considerably, and the US-tariff-related layoffs have already begun. The jobless rate rose to 6.9% in April, portending a coming recession in this year’s second and third quarters.

Economic and financial uncertainty has slowed Canadian housing activity, particularly in the GTA and GVA. However, the increased inventory of unsold homes in much of the country has driven down prices. This creates a buying opportunity for many would-be purchasers.

If you’d like to be added to my distribution list, send an email to mike.bohte@dominionlending.ca

You can apply online today by visiting:
https://velocity.newton.ca/sso/public.php?sc=t675zfpk48mb

You can download my mobile mortgage app in the App Store/Google Play or by visiting:
dlcapp.ca/app/mike-bohte

Welcome to the May issue of my monthly newsletter!

Welcome to May! Hard to believe we’re already a third of the way into 2025. The Stanley Cup Playoffs are in full swing, and hockey fans across Canada are hoping this is the year the Cup finally comes home. Is your team still in the hunt?

While we wait to see how things play out on the ice, this month’s update covers mortgage penalties—what they are and how to avoid them—plus some great ways to boost your home’s value, no matter your budget.

Enjoy – and if you’re watching the playoffs, may your team go all the way!

Understanding Mortgage Penalties
Many homeowners—especially those without a mortgage broker—don’t fully understand mortgage penalties. And I get it! Financing a home can be overwhelming. But if you’re considering refinancing, selling, making a lump sum payment, or need a way out, read this first.

The most common mortgage penalty my clients encounter is a prepayment penalty. Did you know? Your lender doesn’t want their money back early! That’s because they earn guaranteed interest on the loan, helping them not only budget but also profit. Let’s go over the types of prepayment penalties:

Prepayment or Overpayment: If you make a lump sum payment on your mortgage or increase the regular payments by too much, you could be outside the terms of your mortgage agreement.

Transferring: If you move your mortgage to another lender before the end of your term, that is considered breaking the mortgage agreement you made.

Early Re-Payment: If you sell your home and pay off your lender with the proceeds, leaving you without a mortgage, that also breaks the agreement.

Breaking your mortgage for these—or any other reason—almost always results in financial penalties. The amount of the penalty that could be owed will be based on a few factors:
• The amount of pre- or over-payment
• Interest rates (existing and new)
• The type of mortgage (open, closed) and the type of rate (fixed, variable)

How can you reduce or avoid prepayment fees?
The simplest answer is to wait until the end of your existing term to make changes. If that’s not possible, let’s review your circumstances:
• Do you have a fixed or variable rate? If you have a variable rate and you’re breaking the mortgage in favour of a fixed option,
first check to see if you can lock in a rate under your existing terms
• Are you making a lump-sum payment? Review the terms of your mortgage to see what your annual prepayment allowance is. Most mortgages will let you make some fixed lump sum payments without any penalties

Penalties for non-payment
There’s also a flip side to penalties, which involves incurring a penalty because you’re making a late payment or missing payments.

You won’t be surprised that any payment received after the due date will incur a fee. Lenders will also report the missed payment to the credit bureau, which will impact your credit score. Before you miss a payment, the best thing you can do is to notify your lender (especially before it happens) and let them know. You can work together to defer a payment, skip a payment, or make other alternative arrangements.

If you’re with a lender that offers it, consider taking a ‘mortgage payment holiday’ and either skipping or deferring payments for a specific amount of time. Some lenders allow up to 3-6 months or possibly longer, depending on the circumstances.

If you have already missed a payment, you should make up that late or missed payment as soon as possible to avoid a quickly escalating situation.

When can penalties be worthwhile?
It is important to note that sometimes, paying a penalty can be worthwhile—especially if you’re locked into a higher-rate mortgage and the savings from breaking it and securing a lower rate outweigh the penalty costs. I can help you with this determination! I can help you determine if this makes financial sense for you.

An alternative to mortgage penalties
If you’re likely to break your mortgage agreement, consider an open mortgage. This is a great short-term solution for anyone who has an inheritance coming up, is planning a move out of town, or perhaps getting married (or divorced) and planning to combine (or separate) assets. You regularly pay the mortgage as long as you need it, but when you sell the property—no worries. This option does typically come with higher rates, but the benefit is that there are no penalties to pay it off at any time.

Whatever type of mortgage penalty you might be facing, my best recommendation is to talk to me for expert advice. Do this before you make any commitments so we can go over the fine print and you can understand what you’re getting into! I always take the time to do this with my clients, and I would be happy to assist you also.

Top Home Upgrades to Boost Your Property’s Value
“Spring has a way of bringing everything back to life, even a broken heart—or a dated, messy house.” ~ Willie Nelson (roughly interpreted)

Spring is typically a busy season for the housing market in Canada.

Whether you’re looking to sell or help your home bloom where it’s planted, these value-add ideas will be worth putting on your to-do list. We’ve sorted the chores by cost so you can consider your budget first and foremost.
Now, let’s get to work!

Under $100
Perhaps the best bang for your buck is to focus on the front of the house. A few inexpensive ideas are to paint the front railing, upgrade the mailbox, or change the numbers on your house. You’ll also get a lot of value from some yard maintenance, like raking, picking up the pinecones, cutting the grass, or planting a few flowers. Do you know why flowers are so popular? They have a lot of buds. ????
Looking at the inside of the house, something almost all of us could benefit from is decluttering. Go through kitchen drawers and cupboards, closets, and even review the décor in your home. If you still have one of those tall vases with some wheat coming out of it, it’s time to let that go. While you’re scrutinizing every nook and cranny, make sure all the lightbulbs work—and replace any that are burnt out.

Under $500
This budget can get you pretty far if you’re willing to DIY some projects. For example, you could get some paint and supplies and paint a whole new colour into your home. Start with a room or even just an accent wall to make the project more manageable. Another option is to put a firepit in your yard. Seeing and using the space in a new way might make you fall in love with the home all over again.
Another option is to tackle some small upgrades, like new knobs on the kitchen drawers, replacing a toilet seat with an upgraded bidet, or even installing a new light fixture that brightens up a room. Some door handles might need replacing or you may even want to add some curtains or a window treatment to the most used rooms in your home.

Under $1000
Perhaps the biggest suggestion in this category is a professional cleaner. Having someone come in and truly scrub the baseboards, inside the oven, and all those other sneaky little places will make your house look instantly better. Be sure to make a list of what needs the most attention and prioritize the tasks when you hire the cleaner. You could also get your carpets professionally cleaned – they’ll both look and feel much better.
Another idea is to add some tech into your home, like a smart thermostat, lighting, or a camera-based security system. These can be relatively easy to install on your own which is a great way to save some money.

Under $2500
We’re going to start with an interesting one here, which is to upgrade your front door to a steel door. Based on the numbers online, you’ll make back 188% of the value at resale, so think of it as an investment.
If you’ve got hardwood floors, getting them refinished will make a big difference aesthetically in your home. If that’s not a direction you want to go, you could also upgrade the space with a high-quality area rug.

Under $5000
The first suggestion is to upgrade your bedroom closets to custom designs. Make the space more functional for the clothes, shoes, and accessories you have. It will not only make getting dressed easier, but the entire space will be easier on the eyes.
The second suggestion is to install a new garage door. Whether it’s a newly automatic door or simply a better-looking replacement, a new garage door has been shown to recoup 194% of its cost at resale. And if resale isn’t the direction you’re going, you can still use the new door and have your property looking better quickly.

Unrestricted Budget
This next section is something you’re almost certainly better off hiring a professional to tackle. These are much more time and labour intensive, so be sure to research the cost and get quotes from professionals before launching into any of them. Here are a few suggestions:
• Replace the roof. Speaking of roofs, do you know why the roof went to the doctor? It had shingles.
• Redo the kitchen to modern design with new appliances like a gas stove, convection oven, double dishwasher, tech-heavy fridge, or
other things you’ve had on your bucket list
• Add an addition to the home with an office space
• Replace windows with energy efficient ones and include window dressings

The bottom line here is that no matter how big or how small your budget is, there are plenty of things you can do to spruce up your home and either enjoy it more yourself or increase its value to a potential buyer.

Economic Insights from Dr. Sherry Cooper
President Trump’s second term, now just over 90 days long, has wreaked chaos worldwide. A selloff in US assets deepened as President Donald Trump stepped up criticism of Jerome Powell, Chairman of the Federal Reserve, on social media, with stocks, the dollar and longer-dated Treasuries sliding amid concerns about the Federal Reserve’s future independence.

Trump’s assurances that tariff talks were progressing did little to stop the rout. Wealth has been obliterated as stocks have sold off everywhere, and the US dollar has weakened to a 15-month low. The benchmark 10-year fell, with the yield close to 4.4%. As investors turned away from US securities, haven assets climbed. Gold jumped to another record, above $3,400 an ounce, while the Swiss franc gained more than 1% against the dollar.

The weakness also spread to the US credit market. In derivatives, the cost of protecting a basket of high-grade credit securities against default rose to the highest over a week. Three investment-grade companies looked at selling bonds on Monday.

The US president took to Truth Social, escalating his attack on the Fed chair, insisting there was “virtually” no inflation and it was time for “preemptive cuts.” The last reading of the Fed’s preferred inflation gauge remains above the central bank’s target. There will be a new readout next week.

National Economic Council Director Kevin Hassett said on Friday that Trump is studying whether he can fire Powell. The comments raised new questions about whether the Fed can maintain its longstanding independence, with the president increasingly venting dissatisfaction in harsh terms that the central bank hasn’t moved faster to lower interest rates.

“Were Powell to be fired, the initial reaction would be a huge injection of volatility into financial markets and the most dramatic rush to the exit from US assets possible,” said Michael Brown, senior research strategist at Pepperstone. “Not only is the independence of the Fed clearly under threat, but the prospect of de-dollarisation and a move away from US hegemony is increasingly realistic.”

Hedge fund elites have echoed this concern. According to people present, Paul Singer, founder of Elliott Investment Management, warned recently at a private event in Abu Dhabi that the US dollar might lose its reserve currency status.

Rebuking the Fed risks politicizing US monetary policy in a way that markets find deeply unsettling.

“Frankly, firing Powell stretches belief,” said Christopher Wong, a currency strategist at Oversea-Chinese Banking Corp. “If the credibility of the Fed is called into question, it could severely erode confidence in the dollar.”

Fed Chicago President Austan Goolsbee warned against efforts to curtail the central bank’s independence. “There’s virtual unanimity among economists that monetary independence from political interference — that the Fed or any central bank be able to do the job needs to do — is essential,” Goolsbee said on CBS’s Face the Nation on Sunday.

Legal scholars say that a president can’t dismiss a Fed chair easily, and Powell has previously said he wouldn’t resign if asked by Trump.

Trade War
Trump’s tariff offensive also weighed a heavy burden on markets amid worries about a financial slump.

“The global economy is buffeted by a US war on trade, which we believe generates a large enough economic shock to threaten the life of the US and global expansion,” wrote Bruce Kasman, chief economist at JPMorgan Chase.

The Bloomberg Dollar Spot Index slid 0.7% on Monday—every Group-of-10 currency gained against the greenback, including the Canadian dollar. The yen jump weighed on stock indexes in Japan, pushing the Nikkei 225 down 1.3%.

The yen, euro and Swiss franc rallied. WTI crude fell more than 2% to below $64 a barrel. This and eliminating the consumer carbon tax should keep April inflation close to the target level.

As a sign that investors are rotating investments away from the US, Deutsche Bank AG said that Chinese clients had reduced some of their Treasury holdings in favour of European debt. European high-quality bonds, Japanese government bonds and gold are likely to be the potential choices for investors as alternatives to Treasuries.

With this backdrop, the Canadian economy has slowed precipitously. A Canadian recession likely began in the second quarter as consumer and business confidence plunged to record lows. While the details of the imposed levies are uncertain, there is no question that layoffs in the most vulnerable sectors, such as auto manufacturing, are just the tip of the iceberg. Other highly vulnerable sectors include agriculture, mining and minerals, energy, and lumber.

Once the Canadian election is behind us, the most critical next step would be renegotiating the USMCA—the free trade agreement initially negotiated by the first Trump administration.

Tariff turmoil and rising longer-term interest rates have sideswiped Canada’s housing markets, especially in Toronto and Vancouver, where overbuilding and rising new listings have led to a marked decline in the sales-to-new-listings ratio. Home prices are soft, and sellers are motivated.

While the Bank of Canada moved to the sidelines at the April 16 meeting, we believe incoming data will confirm that a recession is imminent. Although trade restrictions put upward pressure on prices, the central bank will no doubt respond if one-shot price hikes feed into an inflationary cycle.

Because Canada is far more interest rate sensitive and depends critically on trade with the US, our economic reaction is likely to be the canary in the coal mine. The Bank of Canada will undoubtedly respond to recessionary pressure by decreasing the overnight policy rate to 2.0%-to-2.25% in the next few months. This should help to spur housing activity where pent-up demand for housing is growing.

If you’d like to be added to my distribution list, send an email to mike.bohte@dominionlending.ca

You can apply online today by visiting:
https://velocity.newton.ca/sso/public.php?sc=t675zfpk48mb

You can download my mobile mortgage app in the App Store/Google Play or by visiting:
dlcapp.ca/app/mike-bohte

Welcome to the April issue of my monthly newsletter!

Spring has sprung for most Canadians (sorry about your luck Alberta) and along with the ever-present trusted mortgage content, this month I have some gardening inspo for anyone that wants to flex their green thumb this year. Enjoy!

Variable-Rate Mortgages: What You Should Know
Shakespeare might have thought ‘to be or not to be’ was the ultimate question, but he wasn’t living in 2025 trying to minimize bank fees and interest charges while maximizing financial returns—and having to pay $9 for a clamshell of raspberries. This month, we’re tackling a modern dilemma: ‘Should I get a variable or fixed rate on my mortgage?’ Not as poetic, but way more practical. Let’s dive in.

Understanding the Basics: Every mortgage payment has two components: principal and interest. Your choice between a fixed or variable mortgage impacts how these are structured over time.

Variable Rate Mortgages: Variable rate mortgages come in two main forms:
• Fixed Payment Variable Mortgage – You have a set monthly payment, but the portion that goes toward principal vs. interest fluctuates. When rates go up, more of your payment goes toward interest, slowing down how quickly you pay off your mortgage. When rates go down, more goes toward the principal, helping you pay off your loan faster.

• Adjustable Payment Variable Mortgage – The total mortgage payment fluctuates based on interest rate changes, ensuring the mortgage is paid off within the original amortization schedule. The portion of your payment allocated to interest and principal will shift as rates change.

Variable mortgages introduce an element of unpredictability, which some borrowers are comfortable with, while others prefer the security of knowing exactly what their payments will be.

Fixed Rate Mortgages: A fixed-rate mortgage means your interest rate and monthly payments remain the same throughout your term. This stability can be crucial for those who prioritize predictability in budgeting, mental well-being, or long-term financial planning. If the idea of fluctuating payments makes you uneasy, or if you want to avoid worrying about interest rate changes, a fixed-rate mortgage could be the right choice.

The Interest Rate Factor: The Bank of Canada (BoC) sets the overnight lending rate, which influences the Prime rate set by banks. Variable mortgage rates are typically based on Prime ± a lender-specific adjustment. There are eight key BoC announcements each year that can result in rate changes (or no changes at all). You’ve probably seen me cover these on social media (if not, I’d love for you to follow along!).

During the pandemic, the BoC lowered rates to 0.25% to stimulate borrowing. Rates began increasing in 2022 due to inflation, reaching 5% by mid-2023 before the BoC started cutting them in 2024. As of March 12, 2025, we’re at 2.75%, with six more rate decisions coming this year.

Risks: There are risks with both variable and fixed rates for your mortgage. With a fixed rate, the risk is that if rates drop, you will have a higher payment than what is available on the market. You’d also likely incur a penalty to break the fixed rate term to capitalise on any decreases. With a variable rate, the risk is that changing rates could increase the amortization of your mortgage. We also discussed the risk of Bank of Canada announcements indirectly changing your rate and therefore payment, impacting your budget and cash flow. And one final potential risk is if rates go up enough, it may trigger the need for a lump sum payment to your lender.

2025: What’s Next? The current rate is still above the target 2%, meaning there is room for potential decreases. However, nothing is guaranteed. Rates could hold steady or, in rare cases, even increase due to external factors like inflation spikes or international economic shifts.

Impact on Your Mortgage: If you have a variable mortgage, your rate is based on your lender’s Prime rate, which is influenced by the BoC policy rate. Your mortgage rate is typically Prime ± a lender adjustment. If the Prime rate is 6% and your lender offers Prime – 0.50%, your mortgage rate would be 5.50%.
• With a fixed payment variable mortgage, more of your payment goes toward principal.
• With an adjustable payment variable mortgage, your monthly payment decreases.

If you have a fixed-rate mortgage, your rate and payments remain unchanged during your term. This stability is why many borrowers prefer fixed rates, even if they sometimes come with slightly higher initial rates. Fixed rates are influenced by bond market trends rather than the Bank of Canada’s policy rate directly.
Which One is Right for You? There is no universal right answer—only the best choice for your financial situation, risk tolerance, and future plans. As your mortgage professional, I’d love to walk through your mortgage with you and discuss:
• The pros and cons of fixed vs. variable for your specific needs.
• How to budget for worst-case scenarios.
• Whether breaking your current mortgage to switch makes sense.
• Economic implications of switching between a variable and fixed rate.
• If adjustments at renewal would benefit you?

Send me an email, text, or call anytime! I’m here to provide guidance, not pressure. Let’s find the best mortgage strategy for you!

Gardening 101: Your Spring Gardening Checklist
If you want to maximize returns on your gardening efforts, we’ve got 3 strategies to take you from garden simp to master plant manipulator.

Strategy 1: Better late than early
Seeds do best when they have an uninterrupted growth phase.
So rather than having your plants stall out in a frost, wait 2 weeks (you can do it!) after your initial instinct to plant. It may seem like it’s too late, but the plants will put it into overdrive and make it work. If you’re in doubt and want to test this theory out, plant half the seeds early, and half the seeds 2 weeks later, and see which does better by the end of the growing season. If you’re new to gardening, you might not have a clue if your tomatoes should go in March 1 or July 1, and that’s totally okay too. The Farmer’s Almanac comes to your rescue with their 2025 updated guideline of when to plant based on your postal code. Click here for details.

Strategy 2: Layout matters
Think measure once, cut twice – but for your garden. First up, arrange the tallest plants on the north side of your garden, and the shortest plants on the south side. This will make sure both your little gem lettuces and the jolly green giant snap peas both get enough sunlight. Second, do your research on how much space each plant needs to thrive so you can plan enough real estate for everyone. This website will help you with both these action items for 71 different vegetables. And don’t be afraid to actually measure out your garden. Putting string dividers in there will help you achieve the perfect layout.

Strategy 3: Weed prevention
Prevention is the best way to avoid destroying your back weeding all spring and summer. This is a bit boujee, but if you don’t have raised garden beds it might just be for you. Putting down a layer of cardboard, then adding a 5-10cms of mulch on top, makes sure the weeds stay underneath while the worms and other goodies stay on top, working hard for your soil and plants. If cardboarding your garden isn’t in the cards, just make sure that there is no open soil. If you can see it, so can a weed! Covering the dirt with a layer of mulch (doesn’t have to be fancy mulch, it can just be lawn clippings, sawdust, and the fall leaves you never bothered to rake up and put out on the curb) will prevent most weeds from having the opportunity to grow in the first place.

Hopefully these tips make you the CEO of your own garden in 2025. If you try something new based on what you read here, send me a pic or a note. I’d love to know what’s working for you and share your advice on my socials!

Economic Insights from Dr. Sherry Cooper
Since Donald Trump took office, all bets are off on the Canadian economic outlook. Most people expected more substantial growth and lower inflation as we moved into 2025. Trump’s tariffs, deregulation, attempts at massive reductions in the federal government bureaucracy and geopolitical machinations have changed everything.

VUCA is the name of the game. An acronym used initially by the US Armed Forces, VUCA stands for volatility, uncertainty, complexity, and ambiguity, and it describes the current situation to a tee. Canadian consumer confidence has fallen to its lowest level in decades. Stock markets have plummeted, the currencies are volatile, interest rates have fallen, and no one knows precisely how this will unfold.

On April 2, the US said it would impose reciprocal tariffs on countries with levies on US goods or that favour domestic producers in some way. Moreover, the president has chosen to go after Canada particularly damagingly. We are the number one supplier of steel and aluminum to the US and are now confronted with 25% tariffs. Inevitably, the economy will slow, layoffs will rise, and tariffs will be passed on to the consumer. Whether this will be a one-shot price hike or spillover into second-order effects is uncertain.

Fed Chairman Powell suggested today that inflation from tariffs will likely be transitory—suggesting that price hikes will trigger higher wage demands. Stagflation is an undesirable possibility.

Central banks do not have the tools to deal with tariff-induced stagflation. Higher interest rates might reduce inflation, but slow economic activity, and lower rates might increase price pressures. China is expected to impose retaliatory tariffs on Canadian canola oil, pork and seafood. The tariffs are push-back against Canada for imposing a 100% levy on electric cars from China and 25% on steel and aluminum.

The US is inserting disruption and disorder into a thriving trading partnership between Canada, Mexico and the US. As Jay Powell says, “It’s hard to say how this is going to work out.”
We are expecting slower growth to be dominant, brought on by VUCA. Shorter-term interest rates will fall. That, combined with more housing supply and lower home prices, should spur housing activity and bring buyers off the sidelines as we move into the Spring selling season.

If you’d like to be added to my distribution list, send an email to mike.bohte@dominionlending.ca

You can apply online today by visiting:
https://velocity.newton.ca/sso/public.php?sc=t675zfpk48mb

You can download my mobile mortgage app in the App Store/Google Play or by visiting:
dlcapp.ca/app/mike-bohte