17 Dec

Why January Is Peak Season for Second Mortgages in Canada – What You Should Know

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Posted by: Ash Khan

Every January, the Canadian mortgage landscape shifts, and one trend that stands out is a significant increase in second mortgage activity. Whether you’re a homeowner considering borrowing against your equity, planning renovations, consolidating debt, or funding a new investment, January often presents strong opportunities to explore second mortgage options.

Understanding the seasonal dynamics behind this trend can help you time your financial decisions strategically and maximize your borrowing power in the year ahead.

What Is a Second Mortgage – and Why It Matters?

A second mortgage, also known as a second lien, allows homeowners to borrow additional funds against the equity in their property while retaining their primary mortgage. This financing option is often used for:

* Home renovations and upgrades
* Debt consolidation
* Investment property purchases
* Large one-time expenses
* Emergency financial needs
Second mortgages provide flexibility without selling your home and can be an efficient way to access your home’s value.

Why January Sees a Surge in Second Mortgage Applications

1. Fresh Financial Goals for the New Year
January marks a time many Canadians set new financial goals, such as:
* Renovating kitchens or basements
* Paying off high-interest credit cards
* Starting new ventures
* Investing in rental properties
With goals top of mind, homeowners look for ways to fund them — and a second mortgage is often a go-to solution.

2. Holiday Spending and Winter Expenses
The fall and winter months can bring unexpected financial strain. Between holidays, travel, and seasonal costs, many households find themselves looking for additional funds in January to reset their budgets.

A second mortgage can provide the liquidity needed to cover expenses without disrupting long-term savings.

3. Tax Planning and Year-End Strategy
Tax season also plays a role. For individuals planning deductions or investment strategies before tax filings, a second mortgage taken in January ensures funds are available early in the year. This timing helps with financial planning and efficient tax management.

4. Increased Home Equity After Market Growth
In markets where home prices appreciated over the previous year, homeowners often have more equity available by January. Seasonal price increases and accumulated equity from mortgage payments make January a logical time to tap into that value.

How Second Mortgages Work in Canada
Unlike primary mortgages — which are secured first — a second mortgage sits behind the first lien. This means:
* Interest rates may be higher than your primary mortgage
* Terms can be shorter
* Default risk for the lender is greater, so eligibility requirements may differ
Despite this, many lenders offer competitive products designed specifically for homeowners seeking mid-term funding.

Benefits of Choosing a Second Mortgage in January
✔ Quick Access to Cash
With equity already established, funds can be disbursed rapidly.

✔ Flexible Use of Funds
You can use the money for almost any purpose — renovations, debt consolidation, education, or investment.

✔ Potential Tax Advantages
Depending on your use of funds, there may be tax benefits — especially for investment purposes (speak with a tax professional for specifics).

✔ Strategic Financial Planning
Starting the year with clear goals and access to funds positions you for better budgeting throughout the year.

Is a Second Mortgage Right for You?
A second mortgage is a powerful tool — but it’s not right for everyone. You should consider:
* Your current debt levels
* Your long-term financial goals
* Your income stability
* Future interest rate expectations
Working with a mortgage professional can help you understand whether a second mortgage fits your situation and how to structure it for maximum benefit.

Tips to Prepare Before Applying
To improve your chances of approval and secure favorable terms:

Review Your Credit Score
Strong credit can lead to lower interest rates.

Calculate Your Equity
Equity = current market value – outstanding mortgage balance.

Compare Lender Options
Different lenders offer varied terms, rates, and conditions.

Plan Your Use of Funds
Have a clear goal — whether renovation, investment, or consolidation.

January Isn’t Just a Month — It’s a Strategy
Tapping into a second mortgage in January isn’t just about timing — it’s about planning. With fresh financial goals, equity growth, and a new year ahead, January offers a unique opportunity for homeowners to leverage their property intelligently.

Whether you’re renovating your dream kitchen or consolidating debt, understanding market trends and borrowing strategically can make all the difference.

If you’re thinking about a second mortgage or want help reviewing your options, I’m here to provide personalized guidance every step of the way.

📞 Call or DM me to explore your second mortgage opportunities.
— Ash Khan, Mortgage Broker & Realtor

1 Dec

Canada’s 2026 Housing Market Forecast: What Buyers & Sellers Should Expect

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Posted by: Ash Khan

As we move closer to 2026, Canada’s housing market is preparing for another shift, and this year’s RE/MAX forecast highlights major trends that buyers, sellers, and investors can’t afford to ignore.
With affordability challenges, rate expectations, and shifting supply levels, understanding the 2026 outlook is key to making smart real estate decisions.

Here’s a clear breakdown of what the upcoming year could look like.

1. Prices Expected to Stabilize. Not Crash
According to the latest forecast, many Canadian markets may experience price stabilization rather than major drops.
After years of turbulence, the market appears to be finding balance as:
* interest rates level off
* demand slowly returns
* more listings enter the market
While some regions may see slight price declines, most major cities, including the GTA, are expected to maintain stable or modestly rising values.

What this means:
If you’re waiting for a dramatic price crash, 2026 likely won’t deliver it.

2. GTA Market: More Inventory, More Opportunity
RE/MAX data suggests that more listings will enter the market across the Greater Toronto Area, easing the competition buyers have experienced in recent years.
With more supply and steady demand, the GTA may shift closer to a balanced market.

Good news for buyers:
* fewer bidding wars
* more negotiating power
* more time to make decisions
* Good news for sellers:
* stable pricing
* strong demand for well-prepared homes

3. Affordability Depends on Rates, and 2026 May Bring Clarity
One of the biggest questions is interest rates.
While 2024–2025 brought several shifts, experts predict rate stability or gradual reductions into 2026.

If rates ease even slightly, it could improve:
* monthly mortgage payments
* buyer qualification amounts
* overall affordability
But buyers should still expect lenders to maintain strict qualification rules, especially with stress test requirements.

4. First-Time Homebuyers Will Re-Enter the Market
After being priced out for years, many first-time buyers may find 2026 a more encouraging entry point due to:
* improved inventory
* stable pricing
* possible rate relief
With savings and down-payment incentives gaining momentum, this group may help drive early 2026 activity.

5. Sellers Must Be Strategic, Not Passive
The RE/MAX forecast notes that 2026 will reward prepared sellers, not passive ones.
Homes will sell, but only if they:
* are priced correctly
* are well-presented
* offer genuine value to buyers
Gone are the days when anything listed would automatically spark a bidding war.
Professional staging, strong marketing, and accurate pricing will be more important than ever.

6. Investors Are Returning, Slowly but Strategically
After stepping back during rate hikes, investors are beginning to explore opportunities in:
* pre-construction
* multi-family properties
* secondary units
* long-term rentals
With population growth expected to remain strong, 2026 could be a favourable year for strategic investments, especially in markets with lower entry costs.

7. Regional Markets Will See Big Differences
The forecast shows high regional variation, meaning the market in places like Toronto, Vancouver, Calgary, Atlantic Canada, and the Prairies will move at very different speeds.
Buyers and sellers must analyze local trends instead of national averages.

2026 Will Reward Informed Decisions
Whether you’re buying or selling, 2026 will favor people who act with good guidance, proper planning, and clear financial strategy.
The market isn’t crashing, it’s normalizing.
And with the right support, it could be the ideal time to make your move.

Need personalized guidance for 2026?
I help buyers and sellers across the GTA make confident, informed decisions with:
✔ Expert mortgage advice
✔ Accurate market insights
✔ Negotiation support
✔ Personalized strategies

📩 Message me anytime to discuss your plan for 2026.
— Ash Khan, Mortgage Broker & Realtor

19 Nov

Canada’s Housing Starts Drop 17%: What It Means for Buyers, Rates & 2025 Market Trends

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Posted by: Ash Khan

According to the latest report from CMHC (Canada Mortgage and Housing Corporation), the annual pace of housing starts in October fell 17%, marking one of the most notable slowdowns in 2024–2025. With high construction costs, labour shortages, and shifting economic conditions, this decline signals an important moment for homebuyers, investors, and mortgage seekers across Canada.

As a mortgage advisor serving buyers across Ontario & Canada, I break down what this drop really means and how it can impact your affordability, interest rates, and overall home-buying strategy.

Why Did Housing Starts Drop by 17%?
Several factors contributed to the slowdown in October:

✔ Higher construction costs
Lumber, labour, and development fees continue to rise, slowing down new builds.

✔ Elevated interest rates
Developers face higher borrowing costs, causing delays and cancellations.

✔ Labour shortages
Limited skilled trades are stretching project timelines.

✔ Economic uncertainty
Developers are cautious about launching large-scale projects until demand stabilizes.
While a drop in housing starts may seem like bad news, there are important insights here for buyers planning to enter the market.

How This Affects Homebuyers in 2024–2025
1. Lower Supply Can Increase Competition
With fewer new homes entering the market, existing inventory becomes more valuable. Buyers may see:
* More competitive bidding in high-demand cities
* Stable or rising prices in the resale market
* Tight supply in condo and townhouse categories

2. Potential Pressure on Renters
Less housing construction means slower rental supply growth. This could push rents higher in major markets like Toronto, Mississauga, Brampton, and Kitchener.

3. A Stronger Shift Toward Alternative Lending
With affordability challenges growing, many Canadians are turning to:
* Alternative lenders
* Private mortgages
* Flexible qualification options
* Equity-based financing
This becomes especially important for:
* Self-employed buyers
* Newcomers to Canada
* Those with unique income situations
* Borrowers impacted by higher interest rates
If banks say no, alternative lending often provides a path forward.

4. Possible Rate Adjustments in 2025
A slowdown in construction usually aligns with broader economic cooling. This may push major financial institutions and the Bank of Canada to consider rate reductions or stabilization going into mid-2025.
For buyers waiting for better opportunities, this could be an encouraging sign.

Is It Still a Good Time to Buy a Home?
Absolutely, but strategy matters more than ever.
Here’s what I recommend for buyers in today’s market:

✓ Get pre-approved early
Knowing your numbers gives you a major advantage when inventory is tight.

✓ Consider alternative lending
Flexible solutions can help you qualify even when banks decline.

✓ Explore equity-based options
Especially useful for investments, renovations, and refinancing.

✓ Work with an experienced mortgage advisor
A strong guidance plan can help you navigate changing market conditions with confidence.

The 17% drop in housing starts highlights ongoing supply challenges across Canada. While this slows new home availability, it also opens opportunities for buyers who plan strategically with expert mortgage guidance.
Whether you’re a first-time buyer, investor, or refinancing your home, staying informed helps you make the right move in a shifting market.

Need Personalized Mortgage Advice?
I help buyers across Canada secure the right mortgage bank, alternative, or private, based on their real financial situation.
📩 Visit: https://ashkhan.ca
📝 Read More Blogs: https://ashkhan.ca/blog/
📞 Get Expert Guidance: Tailored solutions for your home-buying plan.

14 Oct

Why You Should Think Twice Before Letting a Bank Adviser Handle Your Mortgage

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Posted by: Ash Khan

When it comes to your mortgage, one of the largest financial commitments many Canadians make, choosing who manages your file matters enormously. A recent opinion in Canadian Mortgage Trends shares a cautionary tale: a couple had a strong mortgage file, pre-approved by a broker, but when they handed it over to a local bank branch adviser, it got declined.

In this post, we’ll explore why handing control to a bank adviser can be risky, how bank policy and interpretations affect approvals, and what you, as a buyer or homeowner, should do to protect your mortgage outcome.

The Story That Speaks Volumes

In the article, the couple had done everything right: solid income, good credit, a broker had pre-approved them.
But when they visited their local branch and let the branch financial adviser take over, things went sideways. The branch adviser submitted the file, it was declined based on “debt service ratios over limits,” and when the broker later asked to resubmit, the bank refused.

What changed? One key difference: the branch adviser misinterpreted income documentation and applied stricter internal policies rather than leveraging creative structuring that the broker would have used. Once the file was declined formally at the bank level, policy prevented resubmission.

The lesson: not every mortgage adviser is equally equipped. A general branch staffer may lack deep mortgage underwriting knowledge or the leeway to restructure income interpretation. As a result, even strong borrowers can get rejected.

Risks When You Let a Bank Adviser Take Over

  • Less Flexibility in Income Interpretation
    Brokers often use methods like averaging income over two years or combining multiple sources. Bank branch staff tend to stick rigidly to standard formulas, leaving no room for nuance.
  • No Resubmission After Decline
    Once a bank formally declines a file (especially after escalation), their policy may block any further attempts, even if corrections or clarifications could satisfy the requirements.
  • Limited Product Access
    Branch advisers might push only in-house mortgage products, ignoring better rates or programs available through external lenders that a broker would access.
  • Lower Negotiating Power
    Because branch staff may not control underwriting or have discretionary authority, they can’t negotiate exceptions or argue borderline cases as effectively.
  • Lost Time & Opportunity
    A declined mortgage after switching to the branch can mean missed homes, lost negotiating windows, or needing to restart the mortgage application process — all of which cost you time and money.

What to Do Instead: Smart Mortgage Strategy Steps

✅ Stay with a Mortgage Broker You Trust
Choose an independent mortgage broker (like Ash Khan) who specializes in mortgages. They understand nuances across lenders, underwriting policies, and exceptions.

✅ Keep Communication Clear
If you start with a broker, maintain involvement. Don’t hand over total control to a branch. Ask for updates and clarify each document interpretation.

✅ Pre-Approval vs. Final Approval
Get a solid pre-approval with your broker. That gives you confidence before entering a purchase. Then, when your file is submitted, verify what the bank actually sees and flag any changes immediately.

✅ Compare Offers Broadly
Don’t let a bank adviser limit your options. Brokers can shop across multiple lenders, including credit unions, alternative lenders, and private lenders, to find better terms.

✅ Document Early & Accurately
Make sure your income, expenses, debts, and assets are clearly documented. Brokers often help interpret these in the strongest way; branch staff might discard explanations beyond what the raw numbers convey.

Why This Matters Most Now

In 2025, mortgage conditions and interest rate environments are volatile. Lenders are returning to stricter underwriting after periods of loosening. Relying on someone who doesn’t specialize in mortgages could cost you access to lower rates or approval altogether.

If you’re a first-time home buyer or refinancing your mortgage, this is not the moment to rely on a trust-based handshake with a bank adviser. You need specialized insight.

At Ash Khan / Dominion Lending, our mission is to guide clients confidently, applying deep knowledge, lender networks, and strategy to secure mortgage approvals that banks alone might reject.

Ash Khan Thoughts
When it comes to your mortgage, don’t risk handing control to a bank adviser who may lack the specialized insight your file needs. A strong file submitted under conservative, rigid rules can be declined unnecessarily. Choose expert brokerage, stay engaged in the process, and demand clarity and advocacy.

If you’re buying your first home or renewing your mortgage, let’s talk before you hand anything over to a branch. I’ll help you structure your file, compare options, and protect your chances of approval.

9 Oct

When Inflation, Trade Policy & External Shocks Collide: What It Means for Canadian Mortgages

Mortgage Tips

Posted by: Ash Khan

In today’s globally interconnected economy, Canada’s financial stability is constantly tested by forces beyond its borders: surging inflation, shifting trade policies, and unpredictable external shocks. As these macroeconomic pressures mount, Canadian homebuyers and mortgage holders must be prepared to adapt. In this blog, we break down how these forces influence mortgage rates, buyer behavior, and how you can best position your mortgage strategy in 2025.

Understanding the Trio: Inflation, Trade Policy & External Shocks
1. Inflation’s Grip on Mortgage Rates
Inflation in Canada has been a persistent challenge lately. When inflation runs hot, the Bank of Canada is often forced to respond by raising its benchmark interest rate. Higher central bank rates raise borrowing costs across the financial system — ultimately pushing mortgage rates higher. For prospective homeowners, this means the cost of borrowing increases, making monthly payments heftier and affordability narrower.

2. Trade Policy Ripples
Canada’s economy is closely tied to global trade — especially with the U.S., China, and emerging markets. Changes in import tariffs, export restrictions, or supply chain disruptions can spark price volatility for essential goods. That feeds back into inflation and forces monetary policy hand. When trade policy tightens, input costs rise, squeezing margins, and increasing pressure on central banks to act.

3. External Shocks
External shocks could be anything from commodity price collapses, energy crises, geopolitical tensions, or global financial instability. These shocks add uncertainty, making investors seek safer assets, increasing yield rates, and — you guessed it — pushing mortgage rates upward. Risk premiums rise, and lenders become more cautious, filtering into stricter mortgage qualification thresholds.

What This Means for Canadian Homebuyers & Mortgage Strategy
🏠 1. Timing Matters More Than Ever
When inflation is rising or trade tensions escalate, mortgage rates often lag behind but soon catch up. Savvy buyers who lock in competitive interest rates early — especially if pre-approved — can insulate themselves against upward rate swings. Don’t wait until rates climb; acting early often pays off.

🏦 2. Prioritize Flexible Mortgage Products
In such volatile times, flexibility in your mortgage matters. Opt for mortgage products that offer:
* Prepayment privileges
* Portability (ability to move your mortgage if you move)
* Shorter fixed-term options or hybrid products combining fixed + variable rates
This gives you room to pivot if economic conditions shift.

💰 3. Refinance with Caution & Strategy
If inflation cools and rates dip, refinancing becomes more appealing. But you must always do the math: weigh your break-fee/penalty costs against long-term savings. Many Canadians overlook this. A mortgage broker can run side-by-side comparisons to assess whether refinancing now is worthwhile.

💼 4. Watch Your Debt & Cash Flow
In inflationary times, costs creep up: groceries, utilities, maintenance. If you’re already leveraging debt, an interest rate increase could push you into stress. Keep your debt levels in check, maintain good credit, and ensure your income buffer is strong.

🔍 5. Leverage Professional Guidance
You don’t need to be a macroeconomics expert to benefit — you just need a trusted advisor who is. A mortgage broker monitoring inflation trends, trade shifts, and external risk can recommend when to lock rates, when to float, and when to refinance. That’s where Ash Khan’s experience becomes invaluable.

Example Scenario: Inflation Surge + Trade Disruption
Imagine: global oil prices spike due to geopolitical tensions. Canada, being an energy exporter, benefits somewhat — but input costs (transportation, manufacturing) also rise sharply. Inflation accelerates. The Bank of Canada responds by nudging rates higher. Mortgage lenders raise rates accordingly. Homebuyers who locked in rates earlier are protected; those waiting will see higher payments.
In such a scenario, homeowners may want to refinance only if rates dip meaningfully and the break costs are low.

When inflation, shifting trade policies, and external shocks converge, the mortgage landscape becomes more complex — but also ripe with opportunity. With careful strategy, timely locks, and flexibility, Canadian homebuyers and mortgage owners can seize an advantage even in uncertainty.

If you’re navigating homebuying, refinancing, or just want to future-proof your mortgage strategy, reach out to Ash Khan. Together, we’ll build a mortgage plan rooted in insight, resilience, and your long-term financial goals.