Prime Change

Tracy Head • June 18, 2024

On June 5 The Bank of Canada announced they were dropping their key policy rate. In practical terms this meant that prime rate dropped by a quarter per cent (.25 per cent).


I’ve had many conversations since the announcement about how this affects (or does not affect) my clients’ mortgage rates.

Fixed rates change based on many criteria; the key factor I watch is the overnight bond yields. When this figure drops, ideally fixed rate mortgage products will drop also.


Key to note that this means new mortgages may be offered lower rates. If you are already locked in to a fixed rate mortgage, your rate stays the same until your mortgage reaches its renewal date. 


If you are in a variable rate mortgage this will affect you in one of two ways.


If you have a static payment on your variable rate mortgage (the payment does not change based on changes to prime until there has been a dramatic increase to the prime rate) this change to prime rate means more of your payment will be going towards the principal of your mortgage and less to interest.


If your variable mortgage has an adjustable payment this means your payment should go down next month because you will be paying less interest.


For the last few months it has felt like many people have been waiting for this announcement. It has been interesting to see what has happened to the fixed rates offerings from lenders since the change to prime.


Coincidentally the overnight bond yields have been dropping for the last few weeks as well. 

We are seeing rate drops and specials from multiple lenders. 


I feel like this has created a flurry of activity with home purchases from clients that have been sitting on the sidelines waiting for positive news.


If you have been shopping and have a pre-approval or rate hold in place, I suggest you connect with your mortgage person to see if there is a better rate available for you.


Changing gears a bit:

If you are already a homeowner, make sure you claim your Home Owners Grant to ensure your property taxes are calculated correctly for this year.


If you purchased a home over the last year and your lender is collecting your property taxes, check the upper right corner of your property tax bill to confirm your lender is listed. If the lender’s name is not there, reach out to your lender directly to make sure they are set to pay your taxes appropriately. 



Sometimes with the first year there can be a disconnect. Its easier to be proactive and catch this before you get a surprise bill with a penalty for not paying your taxes on time.

Tracy Head

Mortgage Broker

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Mortgage Options

By Tracy Head • November 1, 2025
In past columns I’ve covered when no means no and when no means maybe there’s another option. There are many aspects of my work that I love. One is that I learn something new each and every day. No two clients are the same and no two applications are the same. Some are easier than others to put together. Another thing I love is that we have so many options to consider when working on our files. I do find immense satisfaction when I tackle a complicated file and find a great solution for my clients. I am working with an amazing young couple as they build their portfolio of rental properties. They are relatively young but both work incredibly hard and really have their ducks in a row. The plot twist they have is that they both transitioned from salaried positions to being self-employed over the last year. Their credit scores are both in the high 800s (900 is a perfect score), they are both making substantial income, and they have saved over $100,000 for their down payment.  Seems like a slam dunk right? Because they don’t have two years of filed tax returns as self-employed business people our options are a bit limited. There is a program we use in this situation but their scenario does not fit within the guidelines. Their dream home just came on the market so they are wanting to buy and convert their current home to a rental property. This particular home came up in the neighborhood they really want to be in, and homes don’t come up very often. It is immaculate and has a legal suite. They had originally approached their bank and been told it was a hard no. I work with their realtor fairly often and she suggested they give me a call. Within 24 hours we had the approval in place for them. We ended up taking the application to an alternative lender for a two-year term. The interest rate is about .5 per cent higher than a chartered back and there is a 1 per cent fee charged. We weighed out the pros and cons of going this route versus holding off until their next tax returns are filed before purchasing another property. After chatting with their financial advisor and accountant they felt it was worth the slightly higher interest rate to be able to buy the home now. I will say I love straightforward simple applications but in reality those are few and far between. Most of the applications I work on these days seem to have some sort of plot twist like this one so I am very grateful there are so many options available to help clients who may fall a little outside of the standard lending guidelines.

Marital Breakdown

By Tracy Head • October 18, 2025
One topic I haven’t tackled for a long time is marital breakdowns. When you are working your way through what is arguably one of the most difficult times of your adult life it’s important to know that you have options. There is a program available for refinancing your home specifically for spousal buyouts. Under this program we can refinance your home back up to 95 per cent of the value of the home and use the new funds to pay out your ex-partner and pay out marital debts (provided this is written into your separation agreement). Qualifying this to say that we can refinance to 95 per cent if the value of your home is under $500,000. If the value of your home is over $500,000 we need to ensure you have 5 per cent of the first $500,000 and 10 per cent of any value over the $500,000 left as equity in your home. It’s a small distinction but in the Okanagan the second calculation is the one I see the most. With recent changes to the First Time Home Buyer’s program we can now extend the amortization out as far as 30 years if needed to make the numbers work. It is important to note that this program is an insured program meaning that a premium is added to your mortgage so its important that you work with someone who is familiar with this program. You will require a finalized separation agreement to refinance to pay out the other party.  If you have significant equity in your home and we can make the numbers work a traditional refinance is also an option. In this case we can only increase your mortgage to 80 per cent of the value of your home but there is no default insurance premium required so this is usually the preferable option. A question to ask yourself is whether it makes sense to refinance your current home or to sell and buy a new home. The list of pros and cons will be different for each person, but one of the most important things to consider is whether or not you can afford the higher mortgage payment on your own to stay put. Also key to consider is whether or not you need the same space or whether downsizing might be another option. Do you have children that you want to keep in the same area and same school? Is your current home in a convenient location for work, school, and social activities? Or are you needing a fresh start somewhere new? If you find yourself in this situation and are considering your options with respect to refinancing your home I encourage you to reach out to a professional that can help you take a good hard look at your situation. Doing a bit of legwork upfront may help relieve at least one part of the mental load as you work your way through a separation or divorce.