The Canadian dollar on Monday slumped to a new closing low for 2026 of 71.67 cents U.S., with economists at National Bank of Canada singling out gold as “a key factor” behind the loonie’s weakness.

“The loonie has been the weakest reserve currency in recent weeks,” chief economist Stefane Marion and senior economist Kyle Dahms said in a report, referring to a group of currencies that include the United States dollar , euro and Japanese yen, among others.

They said one reason behind the Canadian dollar’s poor showing is that it now has a stronger relationship with the price of gold than the price of oil , which is a change from when the loonie and oil moved more in tandem during the previous oil shock of 2022 after Russia attacked Ukraine.

Gold is down 20 per cent from its all-time high of about US$5,400 an ounce.

“The rolling correlation between daily moves in the loonie and (West Texas Intermediate) has turned negative in recent months, a clear break from the strongly positive relationship that prevailed during the previous oil shock in 2022, while the correlation with bullion has strengthened sharply,” Marion and Dahms said.

After hitting a year-to-date high of 74.1 cents U.S. in late January, the Canadian dollar dropped about three per cent as investors fled to the U.S. dollar in search of shelter from the stock market rout brought on by the Iran conflict.

From early April to early June, the loonie recovered some of those losses, but has now given them all back.

Marion and Dahms said there are several other factors pushing down the Canadian dollar, including “deteriorating” economic growth and “unfavourable” interest rate spreads between two-year Government of Canada and U.S. Treasury yields.

The two-year U.S. Treasury has a yield of 4.2 per cent compared with the Government of Canada bonds’ 2.9 per cent.

Canada’s economy contracted in the first quarter following negative growth in the final quarter of last year, leading to talk of a technical recession, which is two consecutive quarters of negative gross domestic product (GDP).

The economists said the recession story is a bit of a hard sell given Canada added 88,000 positions in May and the unemployment rate dropped, according to Statistics Canada data released on June 5.

But U.S. real GDP is estimated to grow at 1.6 per cent, according to the U.S. Bureau of Economic Analysis, which would far outpace that of Canada.

Marion and Dahms expect the Canadian dollar to rise to 74 cents U.S. by year-end, but that will depend on a successful outcome to the review of the Canada-U.S.-Mexico Agreement.

“For now, we expect the Canadian dollar to remain under pressure,” they said. “Appreciation should resume, but a sustained rally will likely require Ottawa to secure a trade accord with the U.S. this summer.”

• Email: gmvsuhanic@postmedia.com

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Competition authorities in the United Kingdom are imposing new conduct requirements on Alphabet Inc. ’s Google that will allow publishers to keep their content from being used to power the tech giant’s artificial intelligence features.

In what the U.K.’s Competition and Markets Authority called a world first, publishers will be able to prevent their content from being used in Google’s AI features in search, such as AI Overviews, which quickly compiles information from various sources to boil down a complex topic into a couple of paragraphs.

In addition, Google will be required to ensure that any content used in AI‑generated search results is properly attributed to the publisher using clear links, something the competition authority said will also boost consumer trust.

Moreover, under the new conduct requirements, publishers will be able to opt out of allowing their content to be used for the “fine-tuning” of Google’s AI models.

“This provides publishers with confidence that they will have control over the full range of AI use-cases of their content,” the CMA said, adding that the new conduct requirements will put publishers in a stronger position to negotiate content deals directly with Google.

A Canadian media association hailed the new measures as a blueprint for other jurisdictions including Canada.

“This is a globally significant announcement,” said Paul Deegan, chief executive of News Media Canada, which represents hundreds of print and digital titles across the country including those owned by Financial Post parent company Postmedia Network Canada Corp.

“The U.K. has shown the world the way. Without a realistic opt out, publishers in Canada and around the world have been held for ransom by Google,” Deegan said.

A Google spokesperson responded to a request for comment about the U.K. competition authority’s new conduct requirements by sending a blog post published by the search giant on Wednesday.

In it, the company said it is actively listening to feedback from publishers and engaging with regulators such as the U.K.’s Competition and Markets Authority.

“Today, we’re beginning to test a new control that lets website owners manage how their links and content appear in generative AI Search features,” the post said, noting that the company plans to roll out new control features globally after testing them with a subset of website owners in the U.K.

“Sites that opt out will not receive traffic or impressions from our generative AI features,” the tech giant said, adding that this control will not be used as a ranking signal for search results outside of these generative AI Search features.

Deegan said the pledge to eventually offer opt-out controls to publishers around the world isn’t enough.

“We want the (Canadian) Competition Bureau to align with the CMA’s position to ensure Canadian publishers can effectively opt out from Google AI Overviews as well,” he said.

“Since Google launched AI Overviews in Canada in 2024, publishers have been harmed, and we need an immediate remedy. This should not take months to roll out, and there is no reason why this cannot be done in Canada concurrent (with) the U.K.”

Deegan said that rather than being forced to opt out, publishers should be given the option to opt in to AI training and other AI uses, putting control over content in the hands of publishers that own the copyright-protected content rather than Google, whose machines merely scrape and summarize it.

Anna Maiorino, a spokesperson for the Competition Bureau, said the Canadian agency is aware of the U.K.’s new conduct requirements for Google and follows the work of international counterparts closely, even though they operate under different legal regimes.

“I would emphasize that the Bureau does not develop laws or regulations on any market, sector or industry,” she said.

News Media Canada has been pressing the federal government to direct the Competition Bureau to conduct a market study into one of Google’s primary search tools, Googlebot, which Deegan contends makes it difficult for publishers to opt out of the AI components of Google’s platform.

“(It’s) a co-mingled bot for both traditional search and AI,” he said. “Essentially, if you block their AI crawler, you become undiscoverable on the web … essentially throwing yourself off the internet.”

A Google spokesperson said publishers are able to use a separate control called Google-Extended to opt out of having their content used for AI training.

“Google-Extended does not impact a site’s inclusion in Google Search nor is it used as a ranking signal in Google Search,” the spokesperson said.

Through federal government efforts, Canadian publishers have managed to get some compensation from Google as they struggle to reach audiences and generate revenue alongside global tech firms dominant in online search and advertising.

Under the federal Online News Act, passed in 2023, $100 million now flows to Canadian news businesses annually from Google, which Deegan said is working well. However, he noted that these funds aren’t coming in the form of content licensing agreements, which would see the tech firms pay directly for use of copyrighted material.

Obtaining compensation of any kind has been much more difficult when it comes to social media powerhouse Meta Platforms Inc. (formerly Facebook). In 2023, rather than comply with the incoming online news legislation, Meta withdrew the ability to share news in Canada on its Facebook and Instagram platforms.

In addition to government efforts, the Competition Bureau has been taking steps to deal with the online dominance of major international tech firms.

In November 2024, the Bureau took legal action against Google for alleged anti-competitive conduct in online web advertising in Canada, accusing the company of abusing its dominant position in advertising technology and the ad auction process by, among other things, taking negative margins in certain circumstances to disadvantage rivals and dictating the terms on which publishers could transact with rival ad tech tools.

In setting out its case, the Competition Bureau said it is seeking remedies including forcing Google to pay a penalty and sell two of its ad tech tools. The competition authority also wants to see the company prohibited from continuing to engage in anti-competitive practices. However, it will be up to the Competition Tribunal to determine whether there is merit to the case and whether any remedies are needed.

Similar cases are playing out in other jurisdictions, including in the United States, where Google lost a couple of key anti-trust cases involving online search and advertising.

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• Email: bshecter@nationalpost.com

This week, I will be heading down to Washington, D.C., to meet with American officials and launch our plan to build Fortress North America — a renewed partnership between Canada, the United States and Mexico anchored in the strength of the Canada-U.S. relationship and reinforced by our trilateral partnership with Mexico .

In every conversation I have with American politicians and business leaders, I make one thing clear: tariffs and uncertainty hurt workers, businesses and families in both our countries.

I have also been clear about something else. I love the United States. I respect the American entrepreneurial spirit. I believe deeply in what we can achieve together.

Ontario and Canada will always do what is necessary to stand up for and protect our workers and businesses. The best outcome for workers and businesses on both sides is ending uncertainty and working together to support jobs and economic growth.

As the United States approaches its 250th anniversary, this is a defining moment for our partnership. It is time to come together on a fair trade agreement that will create more jobs, lower costs and strengthen our economic and continental security in the face of growing global competition, especially from China.

Ontario is the economic engine of Canada and a critical partner to the United States. We are America’s closest ally and the largest customer for more than half of U.S. states. We supply the essentials that Americans rely on every day, including critical minerals and rare earths, electricity, uranium, manufacturing inputs, food and health products that support U.S. families, factories and defence industries.

Put simply, we build things together.

Ontario supports millions of American jobs and plays a vital role in the strength and security of our shared economy. There is nowhere else in the world where two economies are so deeply integrated. At the same time, this integration is amplified through North America’s trilateral trade framework, where strong Canada-U.S. ties help drive broader continental growth.

We have seen a constructive shift in Mexico’s approach to trade, including increased attention to issues such as transshipment and broader trade enforcement. We look forward to working alongside Mexico to build on this momentum and strengthen cooperation — because when our trade systems work as intended, it enhances the integrity and competitiveness of all North America.

That is why it is in all our shared interests to move forward together under a renewed Canada-U.S.-Mexico Agreement (CUSMA). A strengthened CUSMA will support shared prosperity and unlock the full potential of Fortress North America.

It will mean a jobs boom. With the right agreement in place, we can unlock billions in new investment across North American auto, steel, manufacturing, agriculture, energy and critical mineral supply chains.

It will lower the cost of living. By reducing tariffs and strengthening our integrated supply chains, we can lower costs for businesses and pass those savings on to consumers.

And it will strengthen continental security, because economic security is national security. By working together, we can build secure and resilient supply chains for critical minerals, nuclear energy, defence production and advanced technologies. We can protect our economies, our borders and our shared future from global threats.

At the same time, a stronger North American partnership will help limit the flow of unfair imports that distort markets and undermine our workers and industries. Deepening our alliance is essential to protecting our economic strength, our democratic values and our long‑term competitiveness.

Trade conflict between allies only creates uncertainty and that uncertainty benefits our competitors, not our workers. We must stay focused on unity, fairness and building together.

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Ontario is ready to do its part. From critical minerals and nuclear energy to advanced manufacturing and artificial intelligence, we are uniquely positioned to help power the next generation of North American growth and security.

Together, let’s build Fortress North America.

Doug Ford is the Premier of Ontario.

Housing development is increasingly running up against a basic blockage beneath the streets: water and sewer systems that can’t keep up with a city or town’s growth.

As a result, housing projects are delayed, fewer homes reach the market and the cost of new infrastructure construction is increasingly passed onto buyers and renters.

Economists, developers and municipal leaders say water and wastewater systems are increasingly limiting housing construction in parts of Canada as cities and towns struggle with aging infrastructure, rapid population growth and the cost of upgrades.

For example, Killam Apartment REIT, one of the country’s largest residential landlords, said it was pausing new developments in Halifax due in large part to water and wastewater infrastructure bottlenecks. The city is rolling out a multibillion-dollar infrastructure overhaul as it grapples with capacity constraints while working with the province to fast-track development approvals and address pressure on existing infrastructure.

The issue is not solely about zoning approvals or land availability. More than 11 per cent of Canada’s water and wastewater assets are in poor or very poor condition, according to Statistics Canada, with more than an estimated $100 billion in upgrades needed.

Housing economist Mike Moffatt said water and wastewater systems built decades ago are increasingly struggling to keep up with the level of growth now being planned — a challenge that is becoming a reality for more municipalities.

He said a few communities have reached hard limits on their infrastructure, but many more are approaching them as population growth accelerates.

“It is an issue,” he said, pointing to parts of eastern Ontario, the Kitchener-Waterloo, Ont., region and Greater Vancouver as areas where infrastructure pressures are emerging.

He said many municipalities could begin hitting capacity constraints within the next five to 15 years.

“When those limits are reached, governments will have very expensive, capital-intensive decisions to make,” he said.

The challenge can be especially stark in smaller communities.

Moffatt, founding director of the Missing Middle Initiative, said municipalities of roughly 10,000 people can face infrastructure upgrades costing $100 million to $200 million, an investment that can be difficult to justify without certainty that growth will actually materialize.

“That will be the tip of the iceberg,” he said.

The most visible cases involve projects being delayed because servicing is not available, he said, but the larger issue may be less visible: communities simply don’t open land for development at all because they know infrastructure cannot support it.

Developers say the issue is already shaping decisions on the ground.

Justin Sherwood, chief operating officer of the Building Industry and Land Development Association, said water and wastewater infrastructure constraints are appearing “virtually everywhere” in some form, particularly in fast-growing parts of Ontario.

“You can’t build a house if you can’t flush the toilet,” he said.

He pointed to the York region north of Toronto, where wastewater capacity constraints have left large housing developments stalled as developers await major infrastructure expansions. For example, he said thousands of planned homes in East Gwillimbury are effectively waiting for sewer capacity before construction can proceed.

Sherwood said the issue affects both new suburban developments and denser city projects. In some cases, developers must fund costly upgrades to local pipes before higher-density projects can move forward. In others, entire subdivisions are effectively paused until regional infrastructure is expanded.

Even in established cities such as Toronto, he said aging infrastructure can create constraints depending on location and system capacity.

“It’s up there,” he said, referring to the importance of servicing capacity among housing constraints in some regions. “In York, sewer allocation is right up there — top three, top four issues.”

The issue is not always that projects are formally rejected, Sherwood said, but that infrastructure capacity shapes what can realistically happen in the first place.

“In the instance of infill, usually the developer and municipality partner find ways to get adequate piping put in the ground,” he said. “But that adds cost to the new project.”

Sherwood said development charges in parts of the Greater Toronto Area can reach $130,000 to $140,000 per unit, much of it tied to the cost of water and wastewater infrastructure needed to support new housing.

Municipal leaders say those pressures are becoming more difficult to manage as infrastructure ages and population growth accelerates.

The result, said Rebecca Bligh, president of the Federation of Canadian Municipalities and a Vancouver city councillor, is that municipalities are increasingly limited on how quickly they can move on housing approvals.

“When it comes to water and wastewater infrastructure, it’s all about planning and forecasting for both new and renewal of existing infrastructure,” she said. “It is holding up municipalities’ ability to move quickly in terms of approvals when it comes to housing.”

Bligh said the challenge varies across the country. Smaller municipalities, she said, face disproportionate pressure due to limited tax bases and smaller administrative capacity, while larger cities are dealing with aging systems and rising demand.

She pointed to Toronto, where she said sewer infrastructure constraints have contributed to delays of more than 60,000 homes, and to London, Ont., where multi-year upgrades are required before further housing expansion can proceed.

Bligh said existing federal funding tools, including the $51-billion Build Communities Strong Fund, are important, but will need to move faster and more directly to keep pace with housing and infrastructure demands.

She said municipalities largely rely on property taxes and user fees for revenue, which account for roughly one-tenth of total government revenues in Canada despite them being responsible for a majority of core local infrastructure.

“We know what we need to do,” she said. “The concern is we don’t have the fiscal capacity to do it at the speed and scale that housing targets require.”

The issue is prompting renewed attention from senior levels of government. An $8.8-billion housing-enabling infrastructure fund announced by Ottawa and Ontario earlier this year is aimed at expanding water, wastewater and related servicing capacity needed for new housing.

The program is intended to help municipalities finance major infrastructure upgrades while reducing some of the upfront costs passed onto developers. But municipal leaders say the impact will depend on how quickly funding flows and whether it keeps pace with rapidly growing demand.

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Even with new funding programs in place, Moffatt said the challenge is unlikely to disappear quickly. Many municipalities are approaching capacity limits, while the cost of expanding water and wastewater infrastructure continues to grow.

Sherwood said the issue goes beyond housing approvals and speaks to the broader role infrastructure plays in supporting municipalities.

“Why should people care about this issue?” he said. “It’s in everyone’s best interest that Canadian cities and towns have infrastructure that is modern and able to support the social and economic needs of a growing, vibrant country.”

• Email: arankin@postmedia.com

Canada’s jobless rate fell to 6.6 per cent in May as 88,000 positions were added into the economy, the first significant employment gain since November 2025, according to Statistics Canada’s labour force survey data released Friday.

Here’s what economists had to say about the latest data and what it means for the Bank of Canada’s future interest rate decisions.

‘Ends recession debate’: CPA Canada

The latest jobs numbers just about ends the recession debate, said Chartered Professional Accountants of Canada’s chief economist, David-Alexandre Brassard. The May report significantly beat expectations, bringing employment close to flat for 2026. The scale of job creation, particularly in full-time roles, points to improving economic conditions rather than a downturn, he said.

“This is a blockbuster report that seemingly wipes away recession fears and points to a rebound in the second quarter following two quarters of contraction,” said Brassard, noting that the gains were broad-based, driven by sectors outside the public sector and industries impacted by tariffs.

He said the report also shows easing wage pressure, as a surge of new jobs helps slow wage growth caused by earlier labour market tightness.

“That resilience comes as Canada looks ahead to the renewal of CUSMA,” he says. “We’re in a stronger position heading into these discussions, which is extremely important given ongoing global trade pressures.”

‘BoC to stay on sidelines next week’: TD Economics

TD Economics director and senior economist Andrew Hencic said the unemployment rate tumbling in May handily beat consensus expectations for a 10,000 gain, as employment gains outpaced labour supply. The labour force was little changed at 3,800, leaving the participation rate unchanged at 65 per cent.

“No bones about it, this is a solid report,” said Hencic. “However, this basically brings employment back to where it was in January, with an unemployment rate 0.1 percentage points higher.”

He said there continues to be a lot of noise in the Canadian economic data, including the “disappointing” surprise contraction in first quarter GDP. But with April’s flash GDP estimate signalling a 0.4 per cent monthly gain and now May’s labour force report, he continues to expect a second quarter bounce-back in activity.

He added that the economy is nonetheless operating below capacity, providing a disinflationary offset to the energy price shock. With this backdrop he expects the Bank of Canada to stay on the sidelines next week and keep its policy rate at 2.25 per cent.

‘Difficult to have much confidence’: Desjardins

Royce Mendes, Desjardins Economics managing director and head of macro strategy, was a bit more cautious. He said the labour market showed signs of life in May with a strong rebound in job creation, which largely reverses the losses observed earlier in the year and the level of employment now just shy of its December 2025 peak.

Yields across the Government of Canada curve are rising, led by the short end where traders are now pricing in between one and two rate hikes for the remainder of this year, he added.

“That said, given the volatility in the Labour Force Survey, it’s difficult to have much confidence in the signalling power of today’s reading,” said Mendes. “We continue to see downside risks for the Canadian economy both from fundamental weakness and trade negotiations.”

‘Welcome upside surprise but cautiously optimistic’: RBC Economics

Royal Bank of Canada assistant chief economist Nathan Janzen said May’s larger-than-expected increase in employment and drop in the unemployment rate is a welcome upside surprise, after the concerns around an unexpectedly soft GDP report for Q1 last week.

Still, the jump in employment in May was just the second increase in the last five months, he said, which still left the employment count slightly down year-to-date in 2026. He argued that a sharp slowing in population growth is distorting the historical comparison of employment growth, as around 26,000 workers retired per month over the last year, and caps on temporary resident arrivals are reducing the supply of workers available from abroad.

“Looking ahead, the economic growth backdrop still faces headwinds,” Jensen said, pointing to the trade uncertainty ahead of negotiations to extend CUSMA and higher energy prices cutting into household purchasing power. “But we remain cautiously optimistic that per-person economic growth and labour market conditions will continue to gradually improve this year, with the unemployment rate edging broadly lower,” he said.

‘The economy isn’t booming, but it isn’t falling apart, either’: BMO

Bank of Montreal’s managing director for Canadian rates and macro strategist, Benjamin Reitzes, said the employment surge in May should silence the recession crowd, with the economy hanging in there despite the headwinds from trade and energy prices.

“Just when you think Canada is crumbling amid a string of negative data points, things reverse,” Reitzes said. “We’ve seen this story a few times in the past year. The economy isn’t booming, but it isn’t falling apart, either.”

The May jobs data is “an unambiguously strong report… Canada continues to hold in,” he said, and it should somewhat ease Bank of Canada worries about the economy after the negative GDP print. Still, he said the back-to-back negative GDPs, lower oil and tame core CPI point to a less hawkish (Bank of Canada decision) next week than in April…though the shift will be less material than if the May report was weak.

‘Strength increases chance of rate hikes: Capital Economics

Capital Economics senior North American economist Ariane Curtis said the strength evident in Canada’s labour market increases the chance of rate hikes this year. She said the strong rebound in employment and the fall in the unemployment rate will provide some relief to the Bank of Canada that the economy is not in or on the verge of recession.

“While wage growth slowed, the strength in the labour market presents a risk to the view that the Bank of Canada will keep rates on hold this year,” she said.

‘Labour market watchers can breathe a sigh of relief’: Indeed Canada

Indeed Canada’s senior economist Brendon Bernard said May’s strong numbers are a good reminder of how a brewing trend in the labour force survey can reverse with just one data release. The slide in full-time job growth that started in February has reversed, and the 0.3-point drop in the unemployment rate almost brings it back to where it started the year.

However, this isn’t particularly good news, he said, as the challenges facing Canadian job seekers persist. The weak momentum that began the year was probably overstated, in part because the fourth quarter of 2025 was surprisingly strong, and now, he says, we’re back to baseline.

“Labour market watchers can breathe a sigh of relief. The employment situation showed a nice rebound in May, reversing a weak start to the year,” said Bernard. He noted that job postings on Indeed have been fairly steady over the past year, which suggests stable conditions in the broader labour market.

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‘Not the backdrop to even consider raising rates’: Rosenberg Research

David Watt of Rosenberg Research & Associates Inc. said that beyond the optimistic headlines, the economy is barely scraping by.

He said that most of the increase in full-time jobs came in the youth category, which jumped by 98,700 — a very rare occurence, and notable given the many stories about the employment challenges facing young Canadian workers. Watt doesn’t think those challenges are gone, and, given the saw-tooth pattern of data from the May report, expects the June jobs numbers might tell a different story.

“This is not the backdrop for a central bank to even consider raising rates,” he said. “Instead, it suggests keeping open the option that they might need to ease.”

Watt added that he thinks the sell-off in the two-year bond that lifted its yield to 2.90 per cent will be unwound as folks take a closer look at the report.

• Email: dpaglinawan@postmedia.com

Canadian mortgage offers change daily. Bookmark this page to compare the nation’s lowest mortgage rates for insured and uninsured loans, updated multiple times a day by MortgageLogic.news. For the best reverse mortgage rates, visit our reverse mortgage page. Postmedia and Imaginative.Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the tables on this page.

Lowest insured mortgage rates (nationally available)

Lowest uninsured mortgage rates (nationally available)

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Looking to save on your mortgage? We’re here to help

On the hunt for a budget-friendly mortgage? You’ve just struck gold. This is Canada’s one and only compilation of mortgage rates that aims to showcase top-notch pricing from every mainstream lender and rate aggregator — provided their rates pass muster.

This vast array of options is key because having a buffet of reputable lenders at one’s disposal improves the odds of landing a killer deal.

But if you want the lowest overall borrowing cost, the quest doesn’t end with the headline rate. Below, you’ll find the ultimate playbook for negotiating the lowest overall borrowing costs in Canada.

How to qualify for the lowest mortgage rates

First off, it’s essential to understand that the lowest mortgage rates require default insurance. Why? Because mortgage insurance is like a safety net for lenders, making loans less risky and, therefore, cheaper to offer.

Most new mortgages with less than a 20 per cent down payment require this insurance by law.

Now, we get that it might seem backwards to put less down and get a better rate. However, insured mortgages actually cut down costs and risks for lenders compared to uninsured financing.

Quick tip: If you switch lenders at maturity and don’t increase your borrowing or amortization, make sure the new lender keeps your insurance in force, as that could qualify you for lower rates today and in the future.

Besides borrower–paid default insurance, lender-paid insured mortgages (a.k.a. “insurable” mortgages) are the next best way to get lower rates.

Insurable rates apply to conventional mortgages sporting at least 20 per cent equity, an amortization of 25 years or less, and an owner-occupied home that was purchased for less than $1 million. Insurable pricing can often be 10-25 basis points (bps) less than uninsured rates. (One basis point is equal to 0.01 per cent or 1/100th of a per cent.)

Quick tip: A 10 bps rate savings keeps over $470 in your pocket over five years, for every $100,000 borrowed with a 25-year amortization.

Insurance aside, to qualify for the best prime mortgage rates, you’ll typically need:

• A 720-plus credit score. Some lenders allow lower scores — or require higher scores — but this is a good rule of thumb
  No derogatories on your credit report in the last few years, such as missed payments
• Monthly housing costs that are less than 39 per cent of your gross monthly income. Housing costs include mortgage payments, heating cost, property taxes and half of any condo fees
• A total monthly debt load that is no more than 44 per cent of your gross monthly income. Your monthly debt load includes housing costs from all owned properties, loan payments, alimony, child support and three per cent of any credit card or unsecured credit line balances
• Provable income. For example, a job letter and pay stub, and/or tax documentation from the past two years if self-employed, or if you’re using bonus, contract, commission or part-time income
• A closing date within the lender’s rate hold period. Sometimes the lowest rates require a close within 30 days, for example
• A marketable home. Rural or quirky homes that are harder to sell may not qualify for the lowest rates

Quick tip: Federally-regulated lenders must calculate your debt ratios using a stress test rate, which is 200 bps above your actual contract rate, or 5.25 per cent, whichever is higher. This hurdle often makes it harder to qualify for some terms than others. For folks with high debt-to-income ratios, the stress test often dictates what rate and term they’ll get approved for.

Update: Effective Nov. 21, 2024, the government’s stress test no longer applies when borrowers switch lenders, regardless of whether they have an insured or uninsured mortgage. This loophole requires that the mortgage amount and amortization remain the same.

Here’s what you need to know about rate surcharges

If you’re a non-prime borrower who needs more lender flexibility, prepare to open your wallet wider — much wider. Non-prime borrowers include those who have:

• Bad credit or no credit
• Hard-to-prove income
• High debt ratios
• Offshore residency
• Unconventional income sources
• Unusual properties

These factors can cost you at least 100-200 bps more than the best rates. Plus, don’t forget the cherry on top: non-prime mortgages typically entail lender and/or broker fees of one per cent of the mortgage amount, or more — sometimes much more depending on how risky your application is.

Lenders also apply surcharges to offset extra risk. Here are some common rate premiums:

• Amortizations over 25 years (if uninsured): add 10 bps
• Amortizations over 30 years (if uninsured): add 100 bps or more, plus lender fees
• Non-owner occupied rental properties: add 10-25 bps
• Vacation homes: add 10-25 bps
• Pre-approvals: add 0-25 bps

Pre-approvals often cost more. That’s because most pre-approvals don’t end up closing, leaving the lender with hedging costs and no revenue.

Quick tip: Only non-prime lenders offer amortizations over 30 years. However, if you get a home equity line of credit (HELOC), the amortization on its low interest-only monthly payments is technically infinite — assuming you don’t make principal payments.

A rate-negotiation survival guide

Saving as much as possible on your mortgage rate takes legwork. Here’s an eight-step survival guide for braving the negotiation jungle:

1. 1. Use the criteria above to confirm if you’re a prime borrower who qualifies for the best rates.
   2. Figure out the best mortgage term for your needs. Get professional advice if you aren’t sure.

Quick tip: Over the long run, shorter terms and variable rates have historically saved borrowers more than longer-term rates, like a five-year fixed. Long-term fixed rates typically do better when the prime rate is well-below its five-year average. Short and variable rates tend to outperform when the prime rate is above its five-year average and flattening out.

1. 1. Once you decide on the appropriate term, confirm the type of mortgage you need: A) default-insured; B) insurable; or C) uninsurable.
   2. Shortlist a few rates that look promising and call the provider directly for the pros and cons. Grill them using the “Mortgage gotchas” checklist below.
   3. Call an experienced high-volume broker to get their take on the rates you’ve found. See if they can offer better. And, if you’re renewing your mortgage and don’t mind your current lender, ask it to beat the rates you found elsewhere. Information is power, so it often pays to call one or two brokers for a second opinion, even if you plan to stay with your existing lender.

1. Be sure that a lender’s terms and flexibility match your five-year plan. For example, if you might need to move and get a bigger mortgage before your existing mortgage matures, be sure the lender lets you do that at its best rates and with no penalty. Be pleasant but firm with your lender at renewal. Politely remind them that they don’t have to pay compensation to a broker or employee if you renew. That leaves them more profit margin versus a new customer, plus they have the security of knowing that you pay as agreed. For these reasons, they should be able to beat the rates that new borrowers get.
2. Figure out which option(s) present the lowest likely overall cost over your expected borrowing timeframe.
3. Apply and lock in your chosen rate to protect against rate increases before closing. If the mortgage has a variable rate, lenders typically allow you to lock in the discount from their prime rate, but they won’t let you lock in the prime rate itself.

Quick tip: No lender can quote a rate with certainty until you apply. They need to see your credit, income, down payment, monthly obligations and property information to confirm they meet minimum guidelines. Applications do not bind you to the lender, however. In most cases, you can get out of a deal anytime before closing, even if you’ve signed the approval (a.k.a. “mortgage commitment”). That said, contact a real estate lawyer if you have doubts about the wording in your mortgage agreement.

Don’t bother trying to negotiate specific wording in the lender’s mortgage contract. Big lenders have their contracts locked down. Unless it’s a mom-and-pop private lender, you have virtually no chance of convincing a lender to change its ironclad legalese. Your best bet is to read it, understand it and if you don’t like it, walk away.

‘Mortgage gotchas’ to keep your broker or lender on their toes

There are so many ways a lower rate can cost you more in the long run. If a lender or broker is trying to sell you on a rate, here are 14 questions to ask them:

1. 1. How long is the rate guarantee good for? Make sure it’s long enough to last until your closing date. The longest rate guarantees with reasonable rates are 120 days, 130 days, 150 days. A few lenders go out to 180 days, but beyond that, the rate surcharges get steep.
   2. How long will it take to get approved? Lower rates often mean busier lenders. If your purchase contract has a tight conditions removal timeframe, make sure the mortgage adviser can meet the condition deadline. If you love the property you’ve put an offer on, don’t be afraid to pay a little more for speed. In competitive real estate markets, slow lenders can cost you your dream home.
   3. What documentation do you require? Make sure you can provide what the lender asks for, including proof of down payment (typically three months of statements showing where the money came from). Income proof is mandatory, too, unless you don’t mind paying steep rates. Proving income can be trickier for those who are new on the job or self-employed. Lenders refer to the self-employed as “business for self,” or “BFS” borrowers. For BFS applicants, the best rates require two years of provable income on tax documents, like notices of assessments and/or tax returns. Some non-prime lenders allow BFS borrowers to provide six to 12 months of bank statements — sometimes none. However, the less you prove, the higher rates you pay.
   4. How much can I prepay without penalty? Make sure it’s sufficient if you plan to make prepayments — and check whether the lender allows multiple prepayments. Some allow only one on the anniversary date. That’s restrictive, and it can cost you if you want to make a prepayment before breaking the mortgage early.
      Quick tip: If you’re breaking a mortgage early and facing a prepayment penalty, check your lender’s policy. You might be able to make a prepayment to reduce the balance the penalty is calculated on. Some lenders, however, don’t let you make a prepayment within 30 days of discharging the mortgage.
   5. How is your early prepayment penalty calculated? If you’re paying out a variable mortgage early, the standard penalty is three months of interest calculated using your actual contract rate, not the prime rate. Some no-frills lenders charge up to three per cent of the principal, however, so beware. If the mortgage is fixed, the fairest method is for the lender to compare your actual rate at the time you break the mortgage to the actual rate it offers for a term similar to your remaining term. Most lenders employ a more costly formula, however, whereby they use artificial comparison rates. These fake rates can boost your penalty considerably. Big Six banks are notorious for this. Experienced mortgage brokers know who the “fair penalty” lenders are.
   6. How is the mortgage compounded? All fixed mortgages are compounded semi-annually, but some variable rates are compounded monthly. Monthly compounding can cost you roughly $159 more per $100,000 borrowed over five years, assuming a 3.99 per cent rate amortized over 25 years.
   7. Do you charge a reinvestment fee? Some lenders stick departing borrowers with “reinvestment fees.” These extra charges can set you back up to $500, on top of all the other fees, if you break the mortgage early.
   8. What is your conversion policy if I switch from variable to fixed? Some lenders only let you convert a variable rate to a five-year fixed. Some allow you to switch to any term longer than your remaining term. Most will not let you convert a variable rate to a one- or two-year term.
   9. How much is your discharge fee? Lenders hit you with discharge fees when you pay off their mortgage. In provinces that don’t regulate discharge fees, some lenders charge up to $500. Most discharge fees are $75 to $400. If you have a mortgage and line of credit combo, check if the lender charges separate discharge fees for each portion. Note: if you are switching lenders, your old lender may charge you an “assignment fee” instead of a “discharge fee.”
   10. Do you cover all fees? When you switch to a new prime lender, most of them foot the bill for your legal, appraisal and lender title insurance costs. Most will not cover your old lender’s “discharge fee,” however.
   11. Do you charge any cancellation fees if I don’t go through with it? A few deep discount brokers and non-prime lenders do, albeit some provinces like British Columbia prohibit cancellation fees.
   12. What is your rate drop policy? It’s important to know how many times a lender will let you reset your rate lower if rates drop before you close. Some don’t allow resets at all, some allow just one, and some don’t restrict rate drops — so long as it’s done a specified number of days before you close (e.g., seven-plus days).
   13. How much title insurance do I have to pay if I use your lender, if any?
   14. Is there a bona fide sales clause in this mortgage? Bona fide sales clauses are like handcuffs. They prevent you from paying out the mortgage early unless you refinance with the existing lender or sell the property to an arms-length buyer.

Features often matter more than the final rate

“You get what you pay for” rings true for mortgages as well. Mortgages that are more flexible cost the lender more, so they usually charge heftier rates. However, shelling out a bit extra initially could save you loads down the line — if you need flexibility later. Here are some of the most common features to scout for:

Portability: If there’s a chance you might move before the mortgage matures, make sure you can take your mortgage to that new property to dodge early payoff charges. Beware: some lenders only allow same-day ports. That means your old and new mortgages must close on the same day, a logistical headache. Others give you up to 180 days. The more the better, but 60 days is usually enough. Note that most credit unions don’t allow portability across provincial boundaries.

Mid-term refinances: If you might need to borrow more before maturity, make sure you can do so without penalty. If you have what’s called a collateral charge, some lenders let you add new borrowing without affecting your existing mortgage rate.

Quick tip: If you’re increasing your borrowing before the mortgage matures, make sure the lender doesn’t bury penalties in its refinance offer by increasing the rate.

Early-renewals: Some lenders let you renew your mortgage before maturity. That can sometimes help you lock in a good rate before a Bank of Canada rate hike cycle begins.

Fixed-payment variables: Most variable rates have locked-in payments, so when prime rates climb, your monthly bill doesn’t (see exception below). Other lenders sell adjustable-rate mortgages, whereby the payment rises and falls with the prime rate. Fixed-payment variables provide payment protection but only to an extent. If Canada’s benchmark prime rate soars 275 bps or more — and your payment doesn’t cover the interest due — most, but not all, lenders will raise your “fixed” payment to cover the interest.

HELOCs: If you like the idea of tapping into home equity whenever it suits, seek out a readvanceable mortgage. You’ll need at least 20 per cent equity, a reasonable debt-to-income ratio and strong credit to get one. Readvanceable mortgages let you borrow on demand with low interest-only payments — typically at prime rate to prime plus 0.50 per cent. Some lenders even have a feature where your borrowing limit automatically rises as you make principal payments on the mortgage portion.

Prepayment options: Folks who expect to have spare cash flow, and who want to prepay their mortgage to save interest, should consider prepayment flexibility. Lenders commonly allow a 10 to 30 per cent annual prepayment option. Some low-frills mortgages allow no prepayments or just five per cent annually. Don’t bother paying a higher rate for more than 10 per cent prepayment privileges unless you’re fairly sure you’ll use it.

Quick tip: If you’re breaking the mortgage early, some lenders prohibit prepayments within 30 days of the date of discharge.

Hybrid terms: Some lenders let you diversify rate risk by mixing parts of your mortgage into different terms — like pairing a long-term fixed with a short-term fixed or variable. That can be a smart move for rate diversification. Just be sure to keep the term lengths identical. If you don’t, the lender might have you over a barrel when the shorter term renews. In that case, if you didn’t like their renewal offer, you’d be stuck with penalties if you bail.

Published rates: Other things being equal, look for a lender that transparently advertises its renewal, early refinance and variable-to-fixed conversion rates. Check to ensure they’re decent, especially if you plan to potentially borrow more after closing.

Assumability: The feature is over-rated because few people use it, but assumability lets a future buyer of your home take over your mortgage. That’s occasionally appealing to buyers if you have an ultra-low rate with enough time left on your term. Just a heads-up: in some cases, if the new owner misses payments, the lender might come knocking on your door.

Cash rebates: Many banks now lure new customers with cash rebates, sometimes topping $4,000 for sizable mortgages. This can cut your effective borrowing costs materially. There’s a catch, however. Cashback offers often require that you open a bank account and use it for your mortgage payments. And, if you break the mortgage early, expect those rebates to be clawed back proportionally.

Bridge financing: Bridge loans provide cash to cover the down payment on a new property while you wait for your old one to sell. If your lender doesn’t offer cost-effective bridge financing, that can be a problem if you move before your mortgage matures.

Skip-a-payment: Payment holidays, as they’re called, let you skip one or more payments each year. That can give you financial breathing room when times get tight.

Service: How easy is it to get support after closing? Do you offer annual mortgage reviews to see if I can save money by refinancing? Do you offer strategies to use my mortgage as a tool to build net worth quicker? These are all questions worth asking.

Seven final questions to lock down your mortgage rate

When haggling with a mortgage lender or broker, here are seven questions to ask:

1. Will you buy down my rate further? Many mortgage pros work on commission and can dip into their own earnings to lower your interest rate. It never hurts to ask a mortgage originator if they can “buy down” your mortgage rate. Note, however, that some mortgage advisers add value far beyond rate discounts, including advice on mortgage strategies that could save you thousands. Expert advisers, if they’re genuinely value-added, don’t typically buy down rates.
2. Has anyone at your lender got a rate lower than me in the last week? If so, how do I get the same?
3. How many lenders did you compare before quoting my rate? This applies to mortgage brokers only since lender reps only sell their own products.
4. Will you tell me if rates drop before I close? If you don’t ask, some lenders and brokers will pocket the rate difference to earn extra compensation for themselves.
5. If your rate is a cash-back effective rate, how do you calculate the cash rebate? Some brokers quote “effective rates” that include cash back. The problem is, some don’t calculate the cash rebate correctly. Ask them to share their math to ensure they’ve given you a rebate that’s big enough.
6. Why are you recommending the term you are? Many mortgage originators get paid more for recommending longer terms. If a mortgage salesperson recommends a specific term, make sure they explain why. Ask what math, future projections and research they did before proposing a term. If you get a shifty answer, find another mortgage expert.
7. What else can I do to get a better rate? For folks who aren’t bankable borrowers, there are ways to seem more appealing to lenders. That might include boosting one’s credit score to 720-plus, paying down revolving credit so you owe less than 30 to 50 per cent of the credit limit, and amassing two years of tax-documented income (if self-employed).

By now, you’ve probably realized that Canada’s lowest mortgage rate isn’t the Holy Grail of financing. Minimizing total borrowing costs matters far more, and achieving that entails some legwork.

So, before you sign on that dotted line, make sure you’ve asked more questions than a contestant on Jeopardy. After all, you want to find a mortgage that fits you like a tailored suit. Only after you’ve nailed that part down should finding the lowest rate become paramount.

Read more from Rob McLister

Who’s afraid of the big bad variable rate mortgage?

How to qualify for a mortgage when your current income doesn’t cut it

How to avoid the financial misery that comes with too much mortgage

For mortgage seekers, a good broker is paramount. Here’s how to find one

Why the smart money is buying single-family homes

What 30-year amortizations mean for mortgage consumers

Why obsessing about paying off your mortgage early costs you money

If you’re tapping the parental ATM for a down payment, here’s how to do it right

For young people, the fastest route to home ownership runs through the trades

Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on Twitter at @RobMcLister.

For the latest mortgage rate changes, check this page daily.

• Robert McLister: 10 mortgage trends I'm watching closely this year
• Rate-cut rumblings could spur sweeter mortgage deals

Canada’s mortgage market is changing all the time, but we keep track of the best rates. Bookmark this page to find the best reverse mortgage rates, updated daily, based on data from MortgageLogic.news. Postmedia and Imaginative.Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the chart below.

Everything you need to know about reverse mortgages

When you’re an equity-rich, 55-year-old-plus homeowner and you need cash, and your only other liquidity plan involves winning the lottery, a reverse mortgage can feel like divine intervention.

Reverse mortgages let you convert home equity into cold, hard, tax-free cash. They require no monthly payments whatsoever (interest owed is added to the value of the loan) and as long as you keep your home maintained and your property taxes and insurance paid, lenders won’t ask you to pack your bags or pay them back early.

And here’s the kicker: if home prices plunge, lenders guarantee you’ll never owe more than your home is worth at the time it’s sold.

Reverse mortgages have gone from a niche last-resort borrowing solution to a booming industry. According to a 2024 HomeEquity Bank study, Canadians 55 and up were collectively sitting on $2.5 trillion in home equity.

Moreover, a whopping 71 per cent of Canadians in the 75-and-over club are still homeowners, according to Environics Analytics. And a 2023 Deloitte study found that 17 per cent of soon-to-retire homeowners were ready to tap their home equity to bridge a savings shortfall.

That means there’s a mountain of dormant wealth that older homeowners can tap. Combine that with retirement savings challenges, and it’s no wonder the “equity release” industry is expanding faster than federal spending at election time.

Reverse mortgage proceeds can be used for virtually anything. You can:

• Wipe out debts
• Make home improvements — install a walk-in tub, say, or finally fix that leaky roof
• Give your kids a down payment boost — possibly to prevent them from moving back in
• Take a dream vacation or otherwise splurge (not our recommendation, but hey, YOLO isn’t just for millennials)
• Use it as a down payment on an income property or vacation home

Naturally, reverse mortgages aren’t the only fish in the home loan sea. Here’s how the main options compare:

Note that some banks and brokers offer cash rebates to offset some of these fees. At a minimum, always ask for an appraisal rebate, as reverse mortgages have healthy profit margins and whoever is selling you one can spare the change.

What are the best reverse mortgage companies?

HomeEquity, through its predecessor CHIP, launched Canada’s reverse mortgage sector in 1986. But since 2018, there’s been a flock of new players.

There are now four main providers in the space, including HomeEquity Bank, Equitable Bank, Home Trust and Bloom Finance. All four are sound, reputable companies, but each has its quirks.

For example, HomeEquity Bank has the widest lending area, Equitable Bank has highly competitive rates, Home Trust has great rates, plus it doesn’t charge borrowers an extra premium at renewal, and Bloom Finance offers the most convenient borrowing option with its Bloom Card.

An experienced mortgage broker can help you compare all these lenders.

For now, read on to see:

• What you need to qualify for a reverse mortgage
• Whether to get one at all
• How to trim your costs

What you need to get a reverse mortgage

Older Canadians can’t rely as much on their ability to generate income. That sometimes leads to cash flow issues that make even Tim Hortons coffee seem expensive.

For many, reverse mortgages are the last fiscally viable option to live a comfortable life, but to qualify, there are three key requirements:

1. Sufficient home equity

Depending on your age, property and location, you can get anywhere from 15 per cent to 59 per cent of your home value. Generally, if you’re only 55, a traditional reverse mortgage limits your borrowing to 15 per cent of your home value.

If there’s another mortgage already parked on your title, reverse lenders will politely decline or make you pay it off. If you have a mortgage on your home for 60 per cent of its value, for example, a reverse mortgage is out of the question.

On the other hand, if you have an existing mortgage and qualify for a big enough reverse mortgage, you can use the new reverse mortgage to pay off the other loan, thus eliminating its payments.

Also, the home must be where you actually live — not a rental or Airbnb that you check on once a month.

2. A suitable, marketable property

If the condition of your home would scare off an appraiser or resale buyer, a reverse mortgage company won’t want it either.

The property must be in good repair with a minimum value of $200,000 to $300,000.

Location matters, and some lenders have location restrictions. For example:

• Equitable Bank lends in Alberta, British Columbia, Ontario and Quebec
• Bloom Finance lends in Alberta, B.C. and Ontario
• Home Trust is starting in Ontario only, but is expected to expand to most provinces by 2026
• HomeEquity Bank lends in all 10 provinces

And yes, if your town’s claim to fame is a blinking yellow light, you might not qualify. Some companies want a minimum population (e.g., 10,000 or 100,000-plus) before they’ll lend.

3. Ability to maintain your home

You may not have mortgage payments, but you still need to pay your property taxes, insure the place and keep it from resembling a fixer-upper on a reality show. The lender will make sure you can afford to do that.

Failing to pay property taxes or insurance, or to maintain the home, can lead to default.

Unless promptly cured, the lender can swoop in to foreclose faster than a hawk on a field mouse.

When not to get a reverse mortgage

The best strategy is to stash enough cash away for retirement so that your home doesn’t have to double as an ATM.

Yet, there are four specific times when a reverse mortgage is especially ill-advised:

1. You can qualify for and afford a home equity line of credit (HELOC) instead

A HELOC is essentially a giant credit card tied to your house. It lets you borrow as you need to, as opposed to taking a big lump-sum at the beginning that you may not need.

HELOCs are usually at least one percentage point cheaper rate-wise and offer the lowest possible interest-only payments. Albeit, HELOCs only come with floating rates, whereas reverse mortgages and regular mortgages offer fixed-rate options.

Manulife’s One HELOC is one of the best reverse mortgage substitutes because, unlike most HELOCs, it also doubles as a bank account. That means depositing income into the HELOC can effectively satisfy the monthly interest-only payments.

Manulife also has more flexible qualifying options than some HELOC providers.

Pro tip: Cap your HELOC limit at 75–80 per cent of what you’d qualify for with a reverse mortgage. That way, if all else fails, you can pay off the HELOC with a reverse mortgage if needed.

One catch with HELOCs: lenders can yank the credit line if they get cold feet or your finances nosedive. I’ve never heard of Manulife calling in its line of credit if the borrower is paying as agreed, but anything’s theoretically possible. Reverse mortgages don’t come with this risk.

While we’re on the topic of HELOCs, we should mention there’s one reverse mortgage lender that offers a HELOC-like option. The company is Bloom Finance.

Bloom’s Home Equity Prepaid Mastercard lets you draw funds when needed, with no readvance fees — unlike most reverse mortgage companies. Over a decade, that flexibility could save you thousands, but it depends on how you borrow and what the rates are at the time.

2. You don’t plan to be in your home long

The upfront costs of a reverse mortgage (e.g., closing costs, appraisal fees and interest) may outweigh the benefits, making other financial options more cost effective.

You may also face stiff prepayment penalties if you bail from a reverse mortgage before three to five years.

3. You can’t afford to or refuse to maintain your home

Skip basic upkeep, tax or insurance payments and it’s like sending your lender a formal invitation to call in your loan.

4. You want to leave a more significant inheritance and have other options

Compound interest doesn’t just take a bite — it goes full buffet on your home equity.

Depending on rates, appreciation and how much you borrow, the loan could vacuum up every dollar of equity within 20 to 25 years. And keep in mind, the average 65-year-old still lives for at least 20 more years — plenty of time for interest to turn a nest egg into an empty shell.

Reverse mortgage frequently asked questions (FAQs)

How much higher is the interest rate?

Once the black sheep of personal finance, reverse mortgages are far cheaper than in the old days, and much more mainstream.

You can see the latest reverse mortgage rates updated daily on this page. Canada’s best reverse mortgage rates are usually at least one to two percentage points above regular mortgage rates for a similar term. That’s the cost of easy qualification and the luxury of no payments.

Should I use a broker or go direct to the lender?

Always consult a broker who specializes in reverse mortgages and has worked with all four major providers. That way, you’re comparing more than just brochures — which matters since the lenders’ rates, fees and fine print vary.

Pro tip: Brokers get paid a commission. Ask the broker to explain how their commission differs among lenders and how it might affect their recommendation. That way you know if there might be conflicts of interest — and maybe even haggle your way to a small cash rebate.

What are the fees?

Plan on at least the following:

• Independent legal advice: $500 to $750
• Appraisal: $300 to $500
• Lender fee: $995 to $2495

Reverse mortgage lenders often run promos that can reduce fees substantially. Make sure you ask the lender or broker what is currently on offer.

Can I ask the lender to buy down my interest rate?

With most mortgage lenders, the loan salesperson can “buy down” (reduce) the interest rate by sacrificing some of their commission.

We’re unaware of any reverse mortgage lender that allows this.

How can I take my money?

You can take money out via:

• A lump sum
• Scheduled monthly instalments
• Unscheduled monthly instalments
• A credit card, in the case of the Bloom Home Equity Prepaid Mastercard

Instalments rack up less interest than lump-sum withdrawals.

Unscheduled advances generally entail a $50 fee, but not when using Bloom’s Mastercard.

How long does it take to get my money?

Reverse mortgages often close in as few as three to four weeks. That assumes your independent counsel deems a reverse mortgage suitable, and there are no snags with your property valuation.

Can I get out of it anytime?

If you have an open reverse mortgage, there is no penalty, but the rate is higher.

For closed versions, there may be a prepayment penalty ranging from three-months’ interest to five per cent of the approved loan amount, depending on how early the breakup happens. If you pay off the loan at the end of the term in five years, there is no penalty.

Some lenders show mercy if you’re heading to long-term care — splitting the penalty so your exit doesn’t sting quite as much. And if you pass away with the mortgage still in place, there’s no penalty — though I wouldn’t call that a “loophole” worth planning for.

Does a reverse mortgage affect my OAS/GIS eligibility in any way?

Nope. Reverse mortgage proceeds don’t count as income, so your income-tested government benefits — such as Old Age Security (OAS) or the Guaranteed Income Supplement (GIS) — are unaffected. In other words, no OAS or GIS clawbacks.

How will a reverse mortgage affect my heirs?

Reverse mortgage loans must be paid off before assets are divvied up by heirs. And the steeper the interest rate, the quicker that equity gets torched — leaving less behind for the next generation.

But hey, it’s the homeowners’ own hard-earned money, not a trust-fund starter kit, right kids?

Should I downsize instead?

Downsizing could be a better call if your goal is to leave the kids more than just property tax bills and your stamp collection. But keep in mind, selling and moving isn’t free. Get ready for:

• Up to five per cent real estate commissions
• Land transfer taxes on any new purchase
• Closing costs
• Moving costs
• Condo maintenance fees (if applicable)
• Miscellaneous

What if I die?

When the last borrower passes, the estate has to settle the loan before anyone inherits so much as a throw pillow.

What is the average age of a reverse mortgage user?

Somewhere around 71, say lenders.

Can reverse mortgage rates be negotiated?

In general, you should always shop around and it never hurts to try and play one lender against another. Equitable Bank has even started throwing down the gauntlet by advertising: “We’ll beat any reverse mortgage rate posted in Canada.” Home Trust, the latest competitor in the market, appears determined to aggressively challenge Equitable, its established rival.

Do deferred property taxes need to be paid off before getting a reverse mortgage?

Generally, yes.

Can I use a reverse mortgage to buy a home?

Yes, if you qualify.

How much home equity will I be left with?

That depends on the interest rate and home appreciation, among other things.

Say you borrow $200,000 on a $500,000 home, the home appreciates at two per cent annually, and your interest rate averages six per cent.

According to HomeEquity Bank’s calculator, you’d still have $90,567 left after 20 years — assuming nothing goes sideways with rates, valuations or reality.

In practice, the average reverse mortgage lasts only seven to 12 years.

What is the average remaining equity when the home is sold?

As an industry average, it’s somewhere around 50 per cent — kind of like splitting a pie with a very hungry banker.

The latest reverse mortgage developments

As of October 2025, a new entrant has tossed their hat in the ring: Home Trust. Long known as an alternative lender for people who didn’t fit with banks, Home Trust is vying for business with competitive rates and fair terms under the label “EquityAccess.”

The company will serve only Ontario to start, but will branch out to other provinces by 2026. Home Trust’s key advantage is renewal pricing. Unlike some rivals who charge renewers more than new customers, Home Trust skips renewal surcharges, avoiding what I like to call the “loyalty penalty.”

The company also lends up to 59 per cent of one’s home value, assuming the borrower is over 70 years old. Just keep in mind that borrowing more than 55 per cent entails a higher interest rate.

Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.

Read more from Rob McLister

Who’s afraid of the big bad variable rate mortgage?

How to qualify for a mortgage when your current income doesn’t cut it

How to avoid the financial misery that comes with too much mortgage

For mortgage seekers, a good broker is paramount. Here’s how to find one

Why the smart money is buying single-family homes

What 30-year amortizations mean for mortgage consumers

Why obsessing about paying off your mortgage early costs you money

If you’re tapping the parental ATM for a down payment, here’s how to do it right

For young people, the fastest route to home ownership runs through the trades

For the latest mortgage rate changes, check this page daily.

• The best mortgage rates in Canada right now
• Finding the best mortgage in a ho-hum rate environment

Last time the Bank of Canada decided on interest rates , market expectations of hikes later this year shot up, as traders zeroed in on one word — “consecutive.”

Governor Tiff Macklem’s mention of the possibility of “consecutive” rate increases in one scenario where oil prices climb higher prompted markets to up their bets to 2.5 hikes this year after the April meeting.

Since then softer economic data and tamer inflation have lowered those bets to 1.5 hikes, but most economists still think the market is overshooting the mark.

“Canada is in a technical recession , and the labour market remains soft with net job losses year to date, keeping the bar for hikes high, said Bank of America economist Carlos Capistran.

“With inflation expectations likely to remain well anchored … we expect the BoC to stay on hold and recommend continuing to fade market pricing of BoC hikes.”

The Bank of Canada’s next decision is this Wednesday and the central bank is widely expected to leave the rate unchanged at 2.25 per cent, its fifth consecutive hold. It’s on the path for the rest of the year where economists and markets diverge.

Most of Canada’s big banks expect the central bank to keep the rate steady throughout this year, including Bank of Montreal, CIBC, Toronto Dominion and Royal Bank of Canada.

Bank of Nova Scotia, however, is forecasting 50 basis points of hikes in the fourth quarter of 2026 and another in early 2027, bringing the rate to 3 per cent.

“We’re the only shop in Canada that called the market move toward pricing hikes in 2026 forecasts dating back to last November,” said Derek Holt, head of Scotiabank Capital Markets Economics, in his note this morning.

Royce Mendes, head of macro strategy for Desjardins Group, however, argues the market is mispriced, saying all signs point to a “classic demand shortfall in the economy.”

In Desjardins’ view the data show that Bank of Canada no longer needs to be worried about a tradeoff between high inflation and low growth, and should focus on what is needed if demand deteriorates further.

The risk of the upcoming Canada-United-States-Mexico-Agreement review is “under-appreciated,” said Mendes, as a negative outcome is the “single greatest risk to the Canadian economy.”

It now looks likely that the three countries will not agree to a 16-year extension by the July 1 deadline — which while not a disaster, will extend the uncertainty hanging over the economy.

With no move expected from the Bank of Canada Wednesday, observers will be watching policy makers’ language closely.

Mendes said the bank should refrain from reiterating the need for “consecutive” rate increases, calling the last instance a “communications misstep.”

“Traders should beware that the Bank of Canada has a history of misguiding markets,” he said.

But Bank of America said “the BoC is biased to the hawkish side” and sees a risk of the market repricing in hikes after the bank’s press conference on the decision.

BMO Capital Markets strategist Benjamin Reitzes expects the Bank of Canada to take a more balanced tone this time around.

“It’s challenging to rationalize threatening consecutive hikes again given how the macro backdrop has evolved,” he said.

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Where employed Canadians are working

More Canadians are returning to the office, as remote work continues to decline, Statistics Canada’s latest jobs data showed.

Canadians working outside the home rose to almost 79 per cent in May, up from 77 per cent in 2025 and 75 per cent in 2022.

Those working exclusively at home dropped a full percentage point from last year to 11 per cent and are now down 7 percentage points from May 2022, when almost 19 per cent of employed Canadians worked from home.

Hybrid work has stayed steady after rising from 6 per cent in May, 2022 to 10 per cent in May 2023.

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Defined-benefit (DB) plans have become revered as gold-plated pension perks, something reserved for the likes of public servants and a shrinking number of lucky private sector workers. But as stock market returns have soared in recent years, defined-contribution pensions (DC) have been staging a comeback. The Financial Post’s Garry Marr explains why DC plan holders are seeing their accounts grow, while more conservative defined benefit plans are left behind. Read more

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McLister on mortgages

Want to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.

Financial Post on YouTube

Visit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.

Today’s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff and Bloomberg.

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This week FP Video looks at what it takes to keep the pumps flowing at a local gas station in Alberta during a global energy crisis , whether the fortunes of Canada’s pipeline industry are at a turning point and why American citizens are flocking to Canadian real estate websites. Plus an economist fills us in on a possible labour crunch on the horizon as retirement numbers soar .

Running a gas station during an energy crisis

It might sound surprising, but this is not a good time for gas stations. When prices are high, it’s tougher to make a profit. So, how are they managing? Watch as FP Videos take you behind the counter at Gas King, a local station in Lethbridge, Alta., where fuel prices shape what people spend and how often they shop. Find out how this independent outfit keeps on truckin’.

Canada’s pipeline industry at a turning point?

Canada’s pipeline industry may be entering a new phase after years of delays and cancellations. South Bow’s proposed Prairie Connector line to the U.S., upgrades to Enbridge’s Mainline and possible Trans Mountain upgrades could add room for rising oil production. But industry insiders say timing will determine whether Canada avoids another pipeline crunch.

Americans’ interest in Canadian real estate is spiking

Phil Soper, president and chief executive at Royal LePage, talks to Financial Post’s Larysa Harapyn about why more Americans are scanning Canadian real estate sites during Donald Trump’s second term and how the real estate market is shaping up going into the summer.

Labour crunch looms for Canada

Nathan Janzen, assistant chief economist for Royal Bank of Canada, talks about the headwinds to come for the labour market as record numbers of Canadians retire.

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Canada’s unemployment rate fell to 6.6 per cent in May and the economy added 88,000 jobs , the first significant employment gain since November 2025.

The increase was driven by an addition of 154,000 full-time positions, according to data published by Statistics Canada on Friday. Part-time work declined, recording a loss of 66,000 positions.

The increase followed a net decline of 112,000 jobs over the first four months of the year, including a loss of 18,000 jobs in April that had nudged the unemployment rate up to 6.9 per cent.

Job gains were led by the construction industry, which added 27,000 jobs, as well as information, culture and recreation sector, which added 19,000 jobs. Transportation and warehousing saw gains of 19,000 jobs, while the accommodation and food services industry added 17,000 jobs.

May’s numbers defied economists’ expectations for a modest improvement at best.

“This is far beyond expectations,” said Sal Guatieri, a senior economist and director at Bank of Montreal Capital Markets. “We were expecting a very modest rebound in employment after three months of job losses out of the past four months.”

Guatieri said that while May’s job gains didn’t fully offset the losses to begin the year, they did make a “good dent” in the decline.

“It suggests that Canadian businesses might be adjusting to the tariffs and the recent spike in fuel costs,” he said. “It’s just one month of data, but it does suggest, tentatively, that Canadian businesses are making that adjustment, and it certainly suggests that Canada’s economy has a little more momentum and vitality than was previously thought.”

Claire Fan, a senior economist at the Royal Bank of Canada, called the results “a good surprise” but warned against reading too much into a single month’s data, noting that a slowdown in population growth may have distorted May’s numbers because it lowers the “breakeven employment” rate — the pace of job creation needed to prevent unemployment from rising. A RBC article in January said that, when taking into account that population growth is at a standstill and the aging population, Canada’s breakeven rate is slightly negative.

That said, she noted that the three-month average unemployment rate has been trending lower since the August and September 2025 peak, signs that the labour market is starting to stabilize.

The broad nature of the job growth was another positive sign. A lot of job growth over the past year has been driven by the health-care sector, and five industries outside of that sector posted higher job growth numbers in May.

“Again, we need to wait for June’s data to really confirm whether this is something that’s going to persist throughout the rest of the summer or the year, or if this is just some volatility in the data,” Fan noted.

She said RBC expect the unemployment rate to come down to around 6.3 per cent by the end of the year.

Both economists said the data will dampen concerns about a full-blown recession in Canada.

The C.D. Howe Institute’s Business Cycle Council, the authority on recessions in Canada, declared earlier Friday that it’s still too early to tell whether the economy is in a full-blown recession. Canada’s economic activity did not show pervasive decline and first-quarter decline was “of very low amplitude” compared to other recessions.

“We are seeing an upturn in activity now, as we saw with the May jobs report, and flash estimates for April’s GDP numbers did show a nice pop in economic activity. Our view is Canada will avoid a recession and will start to gain some momentum as the year progresses. We probably won’t see stronger activity, though, until the turn of the year, and then into next year,” Guatieri said.

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The higher-than-expected unemployment numbers may not be enough to pull the Bank of Canada off the sidelines, however.

Andrew Grantham, executive director and senior economist at CIBC Capital Markets, said in an emailed note to clients that employment is still down year-to-date because of weakness earlier in the year and May’s unemployment rate is still higher than the recent low observed in January (6.5 per cent), which can still put downward pressure on inflation.

“Because of that we still think that the Bank of Canada will stay on hold this year, and further evidence of tightening within the labour market and an acceleration in core inflation would be needed for us to change that view,” the note read.

• Email: ptran@postmedia.com