The Bank of Canada has a big call to make this week, and it’s one that could ripple straight into Calgary’s housing market. On Wednesday, the central bank announces its latest interest rate decision and most signs point to a cut.

Markets Expect a Cut:

Financial markets are betting the BoC will lower its policy rate by 0.25% to 2.5%, ending a streak of three straight holds. While not a huge move, this kind of cut matters because it can translate into lower variable mortgage rates and potentially more competitive lending products from banks.

Inflation and the Economy: Why It Matters:

The Bank’s hand is being forced by mixed economic signals:

• Inflation: August’s consumer price index is expected at 2%, slightly higher than reported July’s 1.7% but still within the BoC’s bottom line. Food and energy costs have been driving it up, but relief may be on the way now that Canada has rolled back tariffs on U.S. grocery items.

• Jobs & Growth: Canada lost over 100,000 jobs in July and August, pushing unemployment to 7.1%. On top of that, GDP shrank in the second quarter, putting us on the edge of recession.

When the economy cools like this, lower rates are meant to stimulate spending and housing often feels the effects first.

What This Could Mean for Calgary’s Market:

Here’s how a rate cut could play out locally:

• Buyers: Even a small drop in rates can boost your borrowing power. With plenty of inventory on the market and interest rates edging lower, this is an ideal time to take advantage of the opportunities out there.

• Sellers: More active buyers in the market could bring about stronger demand. If you’re selling, especially in entry-level or mid-range price points in detached homes, the lower rates can help support activity.

• Investors: Softer borrowing costs make the numbers more attractive, which could spark renewed interest in the condo and townhome market.

Looking Ahead:

Economists expect this may not be the only cut:

• Oxford Economics predicts another quarter-point cut in October, bringing the rate down to 2.25%, the lower end of the “neutral” range.

• TD and Capital Economics both suggest the Bank is getting close to the bottom, but some easing is still on the table.

If that plays out, it could mean a slightly more supportive environment for real estate through the fall.

Conclusion:

The Bank of Canada is trying to maintain a balance, giving the economy some support without cutting too aggressively and risking a reversal later. For the real estate market, a small moves on rates can make a real difference for todays buyers.

Bottom line: For buyers, this is a great chance to secure more affordable financing and take advantage of today’s market conditions. For sellers, improving borrowing conditions could potentially bring more motivated buyers into play, but staying competitive will still be the key to a successful sale.

Let’s be honest, selling a home can feel like a rollercoaster. From the moment that “For Sale” sign goes up, the questions start swirling: What if it doesn’t sell fast enough? What if we don’t get the price we want? What if the deal falls through?

Totally normal feelings. Selling a home isn’t just about a house, it’s about your moving on to the next step in life. But here’s the good news: with the right approach (and the right agent in your corner), a lot of those stresses can be managed or even eliminated.

In this post, we’ll walk through some of the most common stress points sellers face, and more importantly, what can be done to make the process smoother and less stressful.

Selling on a Deadline:

Maybe you’re relocating for work, maybe you’ve already bought your next place, or maybe life just threw you a curveball. Whatever the reason, most sellers have a timeline in the back of their mind. And when things don’t move as quickly as planned, the stress can really start to build.

What helps:

• Know the average time it takes homes to sell in your area (one week of no offers doesn’t mean panic if the average is two months).

• Price it right, an overpriced home just sits.

• Stay flexible with showings. The more eyeballs, the faster the offers.

Lining Up Selling and Buying at the Same Time:

This one stresses out almost everyone. Sell too fast and you’ve got nowhere to live. Sell too slow and you’re juggling two mortgages.

What helps:

• Work with the same agent on both sides (selling and buying). Coordination is everything.

• Have a backup plan, short-term rentals, storage, or even staying with family for a bit. Not fun, but way better than scrambling at the last minute.

Picking the Right Price:

Pricing your home can feel like walking a tightrope, set it too high and buyers might pass you by, set it too low and you risk leaving money on the table. At the end of the day, price is the biggest factor in how quickly your home will sell.

What helps:

• Look at recent sales in your neighbourhood (not just listings, what actually sold).

• Get professional advice from your agent or even an appraiser if you want an unbiased opinion.

• Stay flexible, if buyers aren’t biting after a few weeks, it might be time to adjust.

Worrying About the Sale Price:

Most sellers have a bottom line in mind when selling their home. When offers come in under that, it can be disappointing.

What helps:

• Lean on your agent’s market knowledge, they’ll help you know what’s realistic.

• Don’t get discouraged by a low first offer. It’s often just the start of negotiations.

Choosing the Right Agent:

The truth? The wrong agent can make selling a nightmare.

What helps:

• Ask friends/family for referrals.

• Meet with a few agents before deciding, don’t just go with the first one.

• Pay attention to communication. You want someone who keeps you in the loop and actually listens.

Picking the Right Offer:

It’s not always about the highest dollar amount. Terms & conditions matter.

What helps:

• Look at conditions (inspection, financing, sale of buyer’s home, etc.). Fewer = smoother.

• Consider financing strength, cash or pre-approved buyers are less risky.

• Timing is huge. Flexible closing dates can sometimes beat a higher price.

Deals Falling Through:

The sale is not over until the keys are handed over. Financing issues, inspection surprises, or cold feet can kill a deal during the condition period.

What helps:

• Your agent should vet buyers properly, pre-approval is stronger than pre-qualification.

• Consider doing a pre-inspection to avoid surprises.

• Have a backup plan (other interested buyers or being ready to relist quickly).

Prepping the Home:

Many sellers go overboard here. You don’t need to renovate the entire house.

What helps:

• Focus on repairs that affect safety or what may come up in an inspections first.

• Clean, declutter, and freshen up paint, it goes a long way.

• Ask your agent what’s actually worth doing before you sink money into upgrades.

Showings & Keeping the Place Clean:

Constant showings mean constant cleaning, and that gets old fast.

What helps:

• Keep a simple daily cleaning routine so you’re always “show-ready.”

• Hide clutter with baskets or bins you can tuck away fast.

• Consider professional cleaning or landscaping to take some of the pressure off.

Security & Showings:

It can feel a little strange having strangers walk through your home and honestly, a bit vulnerable with your life on display. That feeling is completely normal.

What helps:

• Lock away valuables.

• Rely on your agent to monitor tours and open houses.

• Depersonalize/stage, it makes the home less vulnerable and more appealing to buyers.

Conclusion:

Selling your home might never be completely stress-free, but it also doesn’t have to feel overwhelming. With the right preparation, strategy, and agent, the process can be a whole lot smoother and way more predictable.

At the end of the day, it’s really just one step toward your next chapter. If you’re thinking about selling, I’d love to help to go over the latest market trends, and put together a tailored strategy to price your home right from day one.

Shoot me a message anytime, let’s make your sale as smooth (and successful) as possible.

If you’ve ever looked up home prices in Calgary and wondered why every site gives you a different number, you’re not alone.

One website says the average home price is $804,000, another shows a median price of $720,000, and the Calgary Real Estate Board (CREB) reports a benchmark price of $760,500.

So which one’s right?

Here’s the thing: they’re all right, but they’re telling you different stories about the same market. Understanding these differences can help you avoid costly mistakes when buying, selling, or investing in Calgary real estate.

Quick Guide to Home Price Metrics

Keep this cheat sheet handy the next time you’re browsing listings or checking a market report:

1. Benchmark Price → The “typical” home with standard features (best for tracking trends).

2. Median Price → The middle price when all sales are lined up (good for realistic budgets).

3. Average Price → All sales added up and divided (broad overview, but easily skewed by luxury homes).

When to use each:

• Benchmark → Market trends

• Median → Budget planning

• Average → Big-picture overview

Why These Numbers Matter:

Calgary’s housing market moves quickly. Prices change not just year-to-year, but season-to-season and even between neighbourhoods.

Using the wrong number is like using the wrong map, you could end up looking at homes way outside your budget or miss opportunities in your price range.

Buyers, sellers, realtors, and even policymakers rely on these metrics, but for different reasons. Let’s break them down.

Benchmark Price: The Most Reliable Metric:

Think of the benchmark price as the cost of a “standard” Calgary home.

CREB calculates it using the MLS® Home Price Index (HPI), which looks at homes with similar features: bedrooms, square footage, lot size, neighbourhood, and age, and tracks how much that “typical” home would cost today.

Why it works: It filters out extremes like $3M luxury estates or teardown properties.

Example: In February 2025, Calgary’s detached home benchmark price was $760,500, up 5.08% from the year before. That’s a solid indicator of where the overall market is heading.

Best used for: Understanding market trends over time.

Median Price: The Middle Ground:

The median price is the easiest to picture. Line up every home sale from cheapest to most expensive—the middle one is the median.

Why it matters: It avoids being skewed by a handful of luxury sales.

Example: In February 2025, the median price of detached homes was $720,000, while the average was $804,439. That’s an $84,000 gap, showing how expensive sales pulled the average up.

Best used for: Setting a realistic budget when house hunting.

Average Price: The Simplest (But Trickiest):

The average price is exactly what it sounds like, add up all sales and divide by the number of sales.

The problem? A few million-dollar sales can drag the number way up, even if most homes sold for much less.

Example: In February 2025, Calgary’s detached average was $804,439, but half the homes actually sold for less than $720,000 (the median).

Best used for: Big-picture overviews and total market value, but not personal budgeting.

Calgary Market Examples: February 2025

Here’s how these numbers looked across property types:

Detached Homes

• Benchmark: $760,500 (+5.08% YoY)

• Median: $720,000 (+1.41% YoY)

• Average: $804,439 (+3.50% YoY)

Apartments/Condos

• Benchmark: $334,200 (+3.95% YoY)

• Median: $330,000 (+4.76% YoY)

• Average: $353,334 (+6.33% YoY)

Semi-Detached Homes

• Benchmark: $683,500 (+6.90% YoY)

• Median: $640,000 (+7.56% YoY)

• Average: $719,393 (+7.92% YoY)

Notice how detached and semi-detached homes show bigger gaps between median and average (luxury sales skew the numbers), while condos are more consistent.

What This Means for You:

For Buyers: Don’t set your budget by the average price. Look at the median for a realistic sense of affordability, and use the benchmark to see whether prices are trending up or down.

For Sellers: Benchmark pricing helps you position your home. If your property has upgrades or extra features, price above the benchmark. If it needs work, you may need to price below it.

For Investors: Pay attention to all three. A rising benchmark signals market strength, while shifts between median and average can highlight which segments (luxury vs. mid-range) are driving sales.

Where to Find These Numbers

• CREB - Monthly market reports, neighbourhood breakdowns, and historical data.

• CREA - National comparisons and forecasts.

• Realtors - Access to MLS® sales data and context for what these numbers mean for your situation.

• City/Province - Housing data, economic trends, and development plans.

Conclusion:

No single number tells the whole story. The smartest buyers, sellers, and investors use all three metrics together:

• Benchmark = Market trends

• Median = Budgeting

• Average = Overall market health

When benchmark and median rise but the average is flat, it suggests luxury sales are slowing while the general market stays strong. If the average rises much faster than the median, luxury homes may be driving the surge.

Numbers are powerful, but only when you know how to read them.

If you’re ready to dig into what these trends mean for your goals in Calgary’s market, reach out to a local real estate professional who can put the data into context and help you make the smartest move.

Buying a home is one of the biggest financial decisions you’ll ever make. Whether you’re a first-time buyer or have purchased before, the process can be exciting but also overwhelming. The Calgary market is competitive, and it’s easy to make mistakes that cost time, money, or even your dream home.

Here are the top 10 mistakes buyers should avoid when purchasing a home in Calgary:

1. Not Getting Pre-Approved for a Mortgage:

One of the biggest missteps is starting your home search without pre-approval.
Why it matters: Pre-approval gives you a clear budget, saves you time, and signals to sellers that you’re serious. Without it, you risk falling for homes you can’t afford or losing out when financing falls through.

2. Skipping a Professional Home Inspection:

In a hot market, it’s tempting to make a “clean” offer. But skipping an inspection can cost you big later.
Why it matters: Inspections reveal hidden issues - like structural, plumbing, or electrical problems so you can negotiate repairs or rethink the purchase. It’s a small upfront cost for peace of mind.

3. Overlooking the Neighbourhood:

Too often, buyers focus only on the house and forget the surroundings.
Why it matters: The neighbourhood can impact your lifestyle as much as the home itself. Think about schools, commute, amenities, and community feel. Visit at different times of day to get the full picture.

4. Letting Emotions Drive the Decision:

It’s easy to get swept away by the “perfect” home.
Why it matters: Emotional buying can lead to overpaying or ignoring red flags. Stay objective, lean on your realtor’s advice, and don’t stretch beyond your financial comfort zone.

5. Forgetting About Additional Costs:

The purchase price isn’t the only cost.
Why it matters: Budget for closing costs, property taxes, insurance, utilities, maintenance, and moving expenses. Planning ahead prevents financial stress once you move in.

6. Making Major Financial Changes Before Closing:

Avoid big purchases, new car, or credit card applications until after possession.
Why it matters: These changes can lower your credit score or affect mortgage approval, putting your purchase at risk.

7. Using All Your Savings for the Down Payment:

While a bigger down payment helps, don’t drain your accounts.
Why it matters: You’ll need cash for moving costs, furniture, repairs, and unexpected expenses. Keep an emergency cushion.

8. Not Shopping Around for a Mortgage:

Many buyers stick with the first lender they talk to.
Why it matters: Comparing rates and terms can save you thousands over the life of your loan. Explore your options before committing.

9. Ignoring Resale Value:

Your dream home today may not be easy to sell tomorrow.
Why it matters: Location, layout, and future developments affect resale value. Choose a home that works for you now but also appeals to future buyers.

10. Holding Out for the “Perfect” House:

Waiting for a unicorn can mean missing out on great opportunities.
Why it matters: No home checks every single box. Focus on what matters most and be flexible on the rest.

Conclusion:

Buying a home in Calgary is an exciting journey, but avoiding these common mistakes will set you up for success. With the right preparation, mortgage pre-approval, inspections, budgeting, and guidance, you can make confident, informed decisions.

If you’re ready to start your search, let’s connect - I’d love to help you find the right home in Calgary’s competitive market.

Refinancing your mortgage might sound complicated, but at its core, it’s simple: you replace your current home loan with a new one that has better terms.

Many homeowners refinance to take advantage of lower interest rates, adjust their monthly payments, or access the equity they’ve built up in their homes. Done right, it can save you serious money and give you more control over your financial future.

Quick Tips About Refinancing:

• Refinancing means swapping your old mortgage for a new one with better terms.

• Most people refinance to lower monthly payments, access home equity, or pay off their loan faster.

• You can also use it to combine debts into one simple payment.

• Watch out for fees, appraisals, and prepayment penalties, which can impact your savings.

What Exactly Is Mortgage Refinancing?

Think of refinancing like trading in your car - you keep the same house, but you get a better loan.

This can mean:

• Lower monthly payments

• Access to your home’s equity (cash-out refinancing)

• Changing your loan length (shorter term = less interest overall; longer term = lower monthly payments)

Renewal vs. Refinancing: What’s the Difference?

This is where a lot of homeowners get confused.

• Renewal: When your mortgage term ends (usually every 1-5 years), you sign a new agreement to continue paying off your balance. It’s usually quick and penalty-free.

• Refinancing: You replace your mortgage with a brand-new one, often with different terms, rates, or amounts. You can do this anytime, but it usually involves fees and sometimes penalties.

Bottom line: Renewing is about keeping things going, while refinancing is about making a change.

Why Home Equity Matters:

Home equity is simply the difference between your home’s value and what you still owe on your mortgage.

Example:

• Home value: $500,000

• Mortgage balance: $300,000

• Your equity: $200,000

When refinancing, most lenders require you to keep at least 20% equity in your home. That leftover equity is your financial cushion.

Types of Refinancing:

Different goals call for different refinancing strategies:

• Rate-and-Term Refinance: Swap your loan for a better rate or term. Good for lowering payments or paying off your mortgage faster.

• Cash-Out Refinance: Borrow more than you owe and take the difference in cash. Useful for renovations, debt repayment, or big expenses.

• Debt Consolidation Refinance: Roll high-interest debts (like credit cards) into your mortgage. One payment, usually at a much lower interest rate.

Refinancing to Lower Interest Rates

Even a small rate drop can make a big difference.

Example:
On a $500,000 loan, dropping from 6% to 5% saves about $291/month.

But you need to factor in:

• Closing costs (appraisal, legal, lender fees)

• Prepayment penalties (especially if you break your mortgage early)

A good rule of thumb: refinancing usually makes sense if you can lower your rate by at least 2% and plan to stay in your home long enough to recoup the costs.

Cash-Out Refinancing:

Want access to cash without selling your home? Cash-out refinancing could be the answer.

Example:

• Home value: $500,000

• Current mortgage: $300,000

• New refinance loan: $400,000

• Cash in your pocket: $100,000

• It’s cheaper than a personal loan or credit card, but comes with risks:

• Higher loan balance = bigger monthly payments

• If home values fall, you could end up owing more than your house is worth

• Best used strategically - for investments in your home, education, or consolidating debt.

Refinancing to Consolidate Debt:

Mortgage rates are often far lower than credit card or personal loan rates. By refinancing, you can roll high-interest debt into your mortgage.

Example:

• $20,000 in credit card debt at 20%

• $300,000 mortgage at 5%

• After refinancing to $320,000, your new single payment could save you $200+ each month.

Just make sure you don’t fall back into the cycle of running up new debt afterward.

Costs of Refinancing:

Refinancing isn’t free. Expect:

• Legal fees: $750-$1,250

• Appraisal: $300-$600

• Mortgage discharge fee: $200-$350

• Prepayment penalties: depends on your lender and contract

Run the numbers carefully, calculate your break-even point (how long it takes for your savings to outweigh your costs).

Conclusion:

Refinancing can be a smart financial move, whether you want to save money, pay down debt, or free up cash for other goals. But it’s not always the right choice, costs and penalties can eat into your savings if you’re not careful.

The key is to understand your equity, weigh the fees, and know your long-term goals. And remember: refinancing might sound simple, but mortgages are a big financial commitment.

Always consult with a licensed mortgage or home loan professional before making a decision.

If you’ve been keeping an eye on the real estate market lately, you’ve probably noticed the shift. it’s not quite the same fast-paced, multiple-offer frenzy we saw a year or two ago. The reality is, right now is actually a pretty great time to buy a home… but it’s a tougher time to sell.

Let’s break down why.

July Numbers - Benchmark Prices:

• Total Residential: $582,900 (↓ 3.9% YoY)

• Detached: $761,800 (↓ 0.8% YoY)

• Semi-Detached: $697,500 (↓ 1.4% YoY)

• Row: $446,200 (↓ 3.9% YoY)

• Apartment: $329,600 (↓ 4.8% YoY)

• Sales: 2,099 (↓ 11.6% YoY)

• New Listings: 3,911 (↑ 8.5% YoY)

• Months of Supply: Apartments are sitting at almost 4mo, while detached and semi-detached hover around 2.5-3mo.

Why It’s a Good Time to Buy:

More Choice, Less Pressure
Buyers have a bigger selection of homes to choose from than they did during the ultra-competitive years. That means less “rush to offer” and more time to actually compare, negotiate, and find the right property.

Room to Negotiate
While prices in some areas are holding steady, sellers are more open to negotiating on price, possession dates, and even including extras.

Stabilizing Interest Rates
Rates aren’t at historic lows, but they’re not spiking like they were. Buyers who were waiting for some stability are finally getting it, and there’s also the potential for rate cuts later this year, which could make things even more attractive.

Why It’s Tougher to Sell:

Buyers Have More Power
With more inventory on the market, buyers can afford to be pickier. That means homes that aren’t priced right or don’t show well tend to sit longer.

Longer Days on Market
Gone are the days of selling in 24 hours with five offers. Properties are taking longer to move, which can be stressful for sellers with deadlines or tight timelines. On average the last few months, properties can sit on the market for up to 30+ days.

Price Adjustments Are Common
These days, sellers need to be realistic about pricing right from the start and sometimes that means adjusting downward if the home isn’t getting much traction. I know it’s tough when you remember your neighbour sold last year for $50,000 more over ask, but that was a completely different market than the one we’re in now.

Conclusion:

If you’re buying right now, you have more leverage than you’ve had in years, use it to your advantage. If you’re selling, success comes down to strategy: proper pricing, standout marketing, and making your home look its absolute best.

The market is always moving in cycles. Right now, it’s a buyer-friendly moment, but that can (and will) shift again. The key is to understand where things stand today and make your move accordingly.

If your home’s been sitting on the market with little to no action, it might be time to face a tough reality: the price could be too high and the interest has become to low.

Nobody wants to lower their asking price—but sometimes, it’s exactly what’s needed to get things moving. In today’s market, smart pricing is everything. Knowing when (and how) to make a price adjustment can be the difference between a smooth sale and a listing that just sits there.

So… how long should a home be on the market before you start thinking about a price drop? Let’s break it down.

Selling a Home in Calgary? You’re Still in a Good Spot

If you're looking to sell in Calgary, the good news is you're still in a relatively strong market. We’ve seen steady price growth over the last few years, mostly thanks to high buyer demand, low inventory, and a solid local economy.

That said, the market's always shifting. While there’s still not a ton of inventory, things like interest rate changes, economic uncertainty, and seasonal slowdowns have made things more balanced. For sellers, that just means keeping expectations in check is more important than ever.

Is Your Home Priced to Sell?

One of the most common pitfalls sellers fall into is overpricing.

You might love your home (understandably) and have seen neighbours cash out at big numbers—but the market sets the value, not emotions or past sales. And today’s buyers? They’re savvy. They’ve done their homework, scrolled the listings, and they know what’s worth what.

Pricing your home to sell doesn’t mean giving it away. It means positioning it competitively so it stands out and gets strong interest while still aiming for a great return.

Why Pricing Right Matters—Especially Early On:

The first 30 days on the market are your golden window. That’s when your home gets the most attention—online, in buyer alerts, and from agents looking for new options for their clients.

If your home doesn’t get any showings in the first two weeks—or people come through but don’t make offers—it’s usually a sign that the price isn’t hitting right.

Some sellers try to “test the market” with a high price, thinking buyers will just negotiate. But most of the time, that backfires. Overpriced listings get skipped over, and once a home goes stale, it’s hard to spark new interest—even after a price drop.

The better move? Price it right from the jump. That’s what creates buzz, traffic, and (often) stronger offers.

When Should You Rethink the Price?

If your home isn’t getting much love in the first 2 to 3 weeks, it’s time to take a closer look at the price.

Here’s a simple rule of thumb:

• No showings in the first week? You’re probably priced too high.

• Tons of showings but no offers? People are interested, but they’re not seeing enough value at your current price.

In either case, making an early adjustment—ideally within the first month—can give your listing a fresh boost. Done right, it can bring in new interest and even revive attention from buyers who may have passed the first time around.

Dropping the Price Doesn’t Mean Giving Up:

Making a price change doesn’t have to feel like you’re losing. A smart adjustment—backed by showing feedback, recent comparable sales, and good advice—can actually help you get back on track.

With the right timing and strategy, a price reduction can get your home back in front of serious buyers and help you close at a number you’re happy with.

Conclusion:

Calgary is still a strong market for sellers, but smart pricing is everything. If your home’s been sitting without much traction, don’t wait too long to reassess. The sooner you make the right move, the better your chances of attracting serious buyers—and getting the price you’re after.

Thinking about selling? I’d be happy to help. I’ll provide a free home evaluation, walk you through current market trends, and build a personalized strategy to price your home right from day one.

Shoot me a message anytime—let’s make your sale a smooth and successful one.

Whether you’re buying your first home or your fifth, the mortgage process can feel like a lot to take in. But here’s the thing: getting a mortgage doesn’t have to be complicated—especially if you take the time to get pre-approved before you start shopping.

In this post, let’s break down what mortgages and pre-approvals actually are, how they work and why getting pre-approved is the first move you can make when thinking about real estate.

What’s a Mortgage, Really?

A mortgage is simply a loan from a lender (usually a bank, credit union, or mortgage broker) that helps you buy a home. Most homebuyers need a mortgage unless they’re buying a property outright in cash (which sadly isn’t most of us).

You’ll pay back the loan over time—typically 25 or 30 years—with interest. Your payments will include:

• Principal: the amount you borrowed

• Interest: the cost of borrowing that money

• Property taxes and insurance may be rolled in too, depending on your lender

What Is a Mortgage Pre-Approval?

A mortgage pre-approval is kind of like getting a “green light” from a lender. It means a lender has looked at your finances—like your income, debt, credit score, and savings—and decided how much they’re likely willing to lend you.

You'll typically receive:

• A maximum purchase price

• An estimated monthly payment

• A locked-in interest rate (valid for 3 months)

Important: A pre-approval isn’t a guarantee. But it is a strong indicator of your budget and a big advantage when you’re ready to make an offer.

Why Should You Get Pre-Approved?

Here’s why you don’t want to skip this step:

1. You’ll know your budget. No guessing. No heartbreak falling in love with a home you can’t afford.

2. You’ll look serious to sellers. In competitive markets, a pre-approval letter can make your offer stand out.

3. You’ll spot red flags early. If your credit score or debt level is an issue, it’s better to know upfront so you can make a plan.

4. You can lock in your rate. If rates are climbing, pre-approval protects you from short-term increases while you shop.

Insured vs. Uninsured Mortgages: What’s the Difference?

This is a key concept most buyers aren’t familiar with—but it can affect your interest rate, the size of your down payment, and even which lenders will work with you.

Insured Mortgages

An insured mortgage means your loan is backed by mortgage default insurance. This type of mortgage is required if:

• Your down payment is less than 20%

• You’re buying a home under $1.5 million

The insurance protects the lender (not you) in case you default on the loan. The cost is added to your mortgage and paid off over time.

Pros:

• Lower interest rates

• Smaller down payment needed (as low as 5%)

Cons:

• You pay for mortgage insurance

• Insurance not available on homes over $1.5M

Uninsured Mortgages

An uninsured mortgage applies when:

• Your down payment is 20% or more

• You’re buying a home worth over $1.5 million

• You’re buying an investment property

These typically come with slightly higher interest rates and stricter qualification rules.

The Mortgage Stress Test: What You Need to Know

Whether your mortgage is insured or not, all borrowers in Canada must pass the mortgage stress test. It’s basically a way for lenders to make sure you could still afford your payments if interest rates were to rise.

Here’s how it works:

Lenders qualify you using the higher of:

• The Bank of Canada’s benchmark rate (currently 5.25%), or

• Your actual contract rate plus 2%

So even if your lender offers you a 4.89% mortgage, they’ll check whether you can afford payments at 6.89%.

Why this matters:

• It affects how much you can borrow

• It protects you from getting in over your head if rates go up

• It applies to everyone—not just first-time buyers

This is one of the main reasons people are sometimes pre-approved for less than they expected—so it's important to factor in the stress test when budgeting.

What’s new?

• You can now switch lenders at renewal without redoing the stress test

• High debt-to-income borrowers (over 4.5x your income)? OSFI’s (Office of the Superintendent of Financial Institutions) capping how many uninsured loans banks can give out. So you might have fewer options if you’re over-leveraged

What You Need for a Pre-Approval in Canada

Getting pre-approved is usually pretty quick and easy, getting the documents may take some time as you’ll need to provide:

• Proof of income (pay stubs, T4s, job letter, etc.)

• Details on your debts and monthly payments

• Info about your down payment (savings, RRSP, gift from family)

• Government-issued ID

• Consent for a credit check

Some lenders offer online pre-approvals that take just minutes. Others might want a phone call or in-person meeting.

Pro Tip: Work With a Mortgage Broker

Mortgage brokers work with multiple lenders and can help you shop for the best rates and terms. They’re especially helpful if:

• You’re self-employed

• You’ve had past credit issues

• You’re a newcomer to Canada

• You want to compare lenders without doing all the legwork yourself

Best of all? In most cases, their services are free—the lender pays them once your mortgage funds.

Final Thoughts: Don’t Shop Without One

In short: a pre-approval isn’t just helpful—it’s essential in today’s market. It gives you clarity, confidence, and a competitive edge when it’s time to write an offer.

And understanding the difference between insured vs. uninsured mortgages—and how the stress test affects your approval—is key to avoiding surprises down the line.

If you need a solid mortgage broker to walk you through the process or help get you pre-approved, I can recommend my preferred mortgage broker to help get you started!