The Liberal Effect on Home Ownership & Bank of Canada Rate remains the same

Kelly Hudson • October 22, 2015

 

The Bank of Canada will maintain its target for the overnight rate at 1/2%. In explaining its  decision to keep its overnight rate at 0.5 per cent , the bank noted that inflation and economic activity was largely unfolding as predicted, even as low oil prices continue to weigh on the economy.
It said the country’s economy is bouncing back from the technical recession that kicked off 2015.

The rebound, the bank added, is supported by the long-awaited “signs of strength” in non-resource sectors, thanks to solid growth in the United States. “Economic momentum is rebuilding,” the report said.

DLC Chief Economist Dr. Sherry Cooper “I am not suggesting that mortgage rates will rise rapidly… I expect mortgage rates to edge up only gradually.” For excellent insight read  Canadian Interest Rates have Bottomed and Housing has Peaked

Liberal leader Justin Trudeau has repeatedly pledged help for Canada’s middle class.

Here’s what he’s promised to do as Prime Minister of Canada as it relates to household balance sheets:

1. Balancing the budget is not a priority until 2019. Trudeau is expected to go on a spending spree suggesting a greater supply of government debt and potentially higher long-term yields to come, which could mean at slightly higher fixed mortgage rates than we’d otherwise see. 

2. No cut in Bank of Canada prime rate: More spending by Ottawa puts less pressure on governor Stephen Poloz to stimulate the economy with rate cuts. The implied probability of a rate hike by next October has almost doubled, from 8% yesterday to 15% as we speak. 3. Wider RRSP Access: The Liberals say they’ll open access to the RRSP  Home Buyers’ Plan  particularly for homebuyers coping with significant life changes (divorce, death of a spouse, a sick or elderly family member, etc.). More access to down payment funds will prop up housing sales and home ownership slightly, and support home prices. 

4. More “Affordability”: The Liberal platform includes a review of housing policy in high-priced markets. The new government will “consider all policy tools that could keep home ownership within reach.” What that means, we’ll have to wait and see. It could definitely be positive for renters and income property investors, given the Liberals have promised to “direct CMHC…to provide financing to support the construction” of new rental housing. 

5. First-timer Support: Trudeau’s government will add more flexible programs for first-time homebuyers. This could mean any number of things, potentially even higher amortization limits for new buyers.

As always, I am available at any time to discuss, plan, help, and listen to your questions, concerns, and feedback. And  please  forward any of my emails on to anyone who you know would be interested in receiving it, because your referrals are what keep me in business!

Thanks for reading!
Kelly

Kelly Hudson

Mortgage Expert

Mortgage Architects

Mobile 604-312-5009  

Kelly@KellyHudsonMortgages.com

www.KellyHudsonMortgages.com

Kelly Hudson
MORTGAGE ARCHITECTS
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Reverse Mortgages in Canada: The Pros and Cons

By Kelly Hudson • February 18, 2026
If you’re 55 or older and own your home, chances are you’ve heard about reverse mortgages. Sometimes they’re described as a “retirement lifesaver.” Other times they sound risky or confusing. The truth? They’re neither magical nor terrible. They’re simply a financial tool — and like any tool, they work well in some situations and not so well in others – EDUCATION is the key! Let’s break it down in plain English. So… What Is a Reverse Mortgage? A reverse mortgage allows you to borrow money against the value of your home — without making monthly mortgage payments. Instead of you paying the lender every month, the interest gets added to the balance. The loan is typically repaid when: The home is sold You move out permanently Or you pass away In Canada, reverse mortgages are currently offered by: HomeEquity Bank (CHIP Reverse Mortgage) Equitable Bank Bloom Financial You still own your home and your name stays on title. That part often surprises people. How It Works (Simple Version) To qualify: You must be 55 or older You must own your home (you can still have a regular mortgage — it just needs to be paid out) You can usually borrow up to about 55% of your home’s value (the older you are, the more you may qualify for) You don’t make monthly payments. But you must continue to: Pay property taxes Keep home insurance in place Maintain the home The money you receive is tax-free. It can come as: A lump sum Monthly advances Or a combination of both That flexibility is one reason many retirees like this option. Why Do People Consider Reverse Mortgages? Most of the homeowners I speak with aren’t looking for luxury spending money. They’re trying to solve real life situations: Covering rising living costs Paying off debt before retirement Managing health or care expenses Staying in their home longer Helping adult children with a down payment For many Canadians, their house is their largest asset — but it doesn’t create monthly income. A reverse mortgage turns some of that home equity into usable cash. The Pros (The Reasons People Like Them) 1. No Monthly Mortgage Payments This is the big one. If you’re living on CPP and OAS, removing a monthly mortgage payment can dramatically reduce stress. Cash flow improves immediately. 2. You Can Stay in Your Home Most people I meet don’t want to move. They love their neighborhood. Their friends are nearby. Family visits often. A reverse mortgage can allow you to age in place instead of selling before you’re ready. 3. The Money Is Tax-Free Because it’s borrowed money — not income — it does not affect: Old Age Security (OAS) Guaranteed Income Supplement (GIS) That’s a major advantage compared to withdrawing from investments. There are no rules about spending. Some clients use the funds to stay in place – health care at home. Some clients renovate. Some travel. Some gift funds to children. Some simply create a safety cushion. It’s your equity – you decide. 5. You Keep Ownership The bank does not own your home. As long as you live in your home, maintain it, insure it, and pay property taxes — you own your home and can stay. 6. No Negative Equity Guarantee In Canada, reverse mortgages include protection so that you (or your estate) will never owe more than the home is worth — even if property values decline. That protection matters.

BC Property Assessment vs. Home Appraisal (Updated for 2026)

By Kelly Hundson • January 15, 2026
What Is BC Assessment? Every January, British Columbia homeowners receive their annual Property Assessment Notice . BC Assessment is a provincial Crown corporation responsible for valuing all real estate in British Columbia for property tax purposes. Each year, BC Assessment provides an estimate of a property’s fair market value as of July 1 of the previous year . 👉 To view the most recent assessment for any property, visit the BC Assessment website and search by address. Important things to understand about BC Assessments Timing matters. Your 2026 assessment reflects an estimated market value as of July 1, 2025, not today. Markets change quickly. In active or volatile markets (like Greater Vancouver and the Fraser Valley), values can shift significantly in a matter of months. Mass appraisal methods are used. BC Assessment relies on algorithms and broad market data rather than a detailed, in-person inspection of your specific home. Because of this, an assessed value can differ — sometimes substantially — from: a lender-ordered mortgage appraisal, or a private real estate appraisal completed for buying or selling. BC real estate context (2026) As we move through 2026, BC housing markets continue to be influenced by: interest-rate expectations and changes by the Bank of Canada, affordability pressures, regional supply constraints, and local economic conditions. This means BC Assessment values should be used only as a starting point , not as a precise indicator of what a property will sell for or what a lender will accept as value. Bottom line: Do not rely on BC Assessment for the exact value of a property you’re planning to sell, purchase or refinance.