The Bank of Canada raised its policy rate by 0.25 percentage points today, bringing it to 2.50%. If you have a mortgage or a line of credit, you may be wondering how the decision will affect you.

If you have a variable-rate mortgage, your rate will rise if your lender increases its prime rate. Depending on how your mortgage is set up, that could mean a higher regular payment. If you have a fixed-payment variable-rate mortgage, your payment may initially stay the same, with more going toward interest and less toward principal. If your mortgage reaches its trigger rate, however, your lender may require you to increase your payment.

Interest rates on home equity lines of credit (HELOCs) and other lines of credit tied to prime will also rise when lenders increase their prime rates.

If you have a fixed-rate mortgage, your rate and payment won’t change during your current term. Rates offered on new fixed mortgages can still move, although they don’t automatically follow changes to the Bank’s policy rate.

I know a rate increase can raise questions, especially if you’re planning to renew or make a move. If you’d like to talk through your situation and what options may be available, please reach out. I’m happy to help.

- Paul Macara
paul@macaramortgages.com

If you’ve been thinking about buying a home but decided to wait, this fall may be a good time to take another look at the market.

More homes are coming onto the market nationally, prices have been relatively stable and sales activity remains softer than it was a year ago. That combination could give buyers a bit more breathing room than they’ve had during some of the more competitive periods of recent years.

According to the Canadian Real Estate Association, national home sales declined 0.7% from July and were 6.9% lower than in August 2025. New listings, meanwhile, increased 3.3% month over month.

There were 4.8 months of inventory nationally in August, while the MLS Home Price Index was unchanged from July and down 3% from a year earlier.

Of course, real estate is always local, and conditions can look very different from one market, neighbourhood or property type to another. But if you stepped back because there wasn’t enough choice, prices felt too high or you simply weren’t comfortable making a move, it may be worth checking in again.

A good time to rerun the numbers

Even if you’re not ready to start making offers, there’s value in knowing where you stand today.

Mortgage rates have changed since you last looked, and so may your income, savings, down payment or monthly expenses. A fresh look at the numbers can give you a much clearer idea of what you can comfortably afford now.

That doesn’t necessarily mean borrowing the maximum amount you qualify for. In fact, one of the most useful parts of the process is looking at a few different purchase prices and seeing what those payments would mean for your monthly budget.

It’s also important to factor in the costs that come with owning a home beyond the mortgage payment, including property taxes, insurance, utilities, condo fees where applicable and ongoing maintenance.

The advantage of having more listings available is that you may have more time to compare your options rather than feeling pressured to jump at the first suitable property you see.

And if the right home does come along, having your financing reviewed ahead of time can put you in a much better position to act with confidence.

If you’ve been sitting on the sidelines, there’s no need to rush back in. But this fall may be a good opportunity to revisit your plans, update your numbers and see whether the market looks any different from the last time you checked.

I’m always happy to help you run through the numbers, look at different scenarios and get a clearer sense of what may be possible for you today.

Paul Macara
Mortgage Broker
(250) 857-4741
paul@macaramortgages.com

Moving is a big change, even when you’re excited about where you’re going. For kids, it can mean leaving behind a familiar bedroom, a favourite park, or the route they know by heart on the way to daycare.

If your family is planning a move in Greater Victoria, a little preparation can help your kids feel part of it.

Talk about what will stay the same

A new address doesn’t mean every part of their world is changing. Talk about the routines you’ll keep, whether that’s Saturday pancakes, bedtime stories, or seeing the same friends and family. It gives kids something familiar to hold onto while everything else feels new.

Let them take part in small decisions

They may not get to choose the house, but they can choose which toys to pack in their own bag or where a favourite picture will go in their new room. Small choices can make the move feel less like something happening to them.

Keep a few essentials close

Pack a bag for each child with pajamas, a favourite stuffed animal, a book, snacks, and anything they’ll want on the first night. You’ll be glad you don’t have to search through boxes at bedtime.

Get to know the new area together

Once you’ve moved, take a walk around the neighbourhood. Find a playground, pick a place for a treat, or try the route to school or daycare together. Whether you’re moving across Victoria or settling into Langford, those little outings can help an unfamiliar place start to feel like theirs.

Give everyone time to settle in

You can love your new home and still miss the old one. Kids might be excited one day and upset the next. There’s no need to rush them into feeling at home right away.

A move is about more than finding enough bedrooms or the right backyard. It’s about finding a place where your family can build its everyday life. And often, it’s the small, ordinary moments after move-in that make a new house feel like home.

Whether you are a friend of someone going through a separation, or the person navigating the separation yourself, there is something valuable here for you. A separation brings no shortage of difficult decisions, and one of the biggest is what to do with the family home. Selling and dividing the proceeds may be the right answer, but it is not the only one. If one spouse wants to stay, a spousal buyout may make it possible to purchase the other person’s share and place the home and mortgage in the remaining spouse’s name.

To the friend who knows someone separating

You may be the first person they turn to for a listening ear or practical advice. Sharing clear information about options like a spousal buyout can reduce overwhelm and help them see that keeping the family home is sometimes achievable. Pointing them toward experienced guidance early can make a meaningful difference at a stressful time.

To the person going through a separation

You do not have to figure this out alone. Experienced brokers and agents work with these situations regularly and can walk you through the numbers, the paperwork, and the realistic possibilities so you know what options exist. There are solutions available, and having the right support can bring a measure of certainty when so much else feels uncertain.

More than a standard refinance

In a conventional refinance, homeowners are generally limited to borrowing up to 80% of their home’s value. A qualifying spousal buyout may instead be treated as a purchase transaction, potentially allowing financing above that limit through an insured mortgage.

For example, on a home valued at $600,000:

• A conventional refinance would generally be limited to $480,000, or 80% of the home’s value.
  

• A qualifying spousal buyout could potentially provide up to $565,000 before the mortgage-insurance premium.
  

• That could make up to $85,000 in additional financing available to complete the buyout or address eligible joint debts included in the separation agreement.
  

For illustration, at a mortgage rate of 4.50% and a 25-year amortization, the monthly payment would be approximately $2,657 under the conventional refinance limit, compared with about $3,252 if the maximum spousal-buyout amount and mortgage-insurance premium were financed.

These figures are for illustration only, as the amount available and monthly payment will depend on the home’s appraised value, the required buyout, the existing mortgage, applicable insurance premiums and the rate available when the financing is arranged.

The funds are generally used to pay out the existing mortgage and the departing spouse’s agreed share of the equity. Depending on the lender and mortgage insurer, certain jointly held debts addressed in the separation agreement may also be included.

What lenders will consider

The spouse keeping the home must still qualify for the new mortgage based on their income, credit, other debts and the applicable mortgage stress test.

Child or spousal support received may help with qualification when it is properly documented and expected to continue. Some lenders may use 100% of qualifying support income, while others apply different limits or documentation requirements. Support payments being made must also be included when the lender assesses the borrower’s obligations.

Lenders will typically ask for:

•  A signed separation agreement setting out the division of the property, debts and any support obligations;

• Documentation supporting the transfer and agreed buyout amount;
  

• An appraisal confirming the home’s current value; and
  

• The legal transfer of the departing spouse’s interest in the property.
  

A signed separation agreement can also be important if either spouse plans to purchase another home. A signed separation agreement can also be important if either spouse plans to purchase another home. Requirements will vary by lender and province, and a signed agreement documenting the borrower’s financial obligations may be needed before completing financing connected to a separation..

There may also be mortgage-insurance premiums, legal fees, appraisal costs and, depending on the province and circumstances, land-transfer or registration costs. Any penalty for breaking the existing mortgage must also be included in the calculation.

This may sound complex, but you don’t have to navigate it alone. I have the knowledge and resources to guide you through the financing process, explain what documentation is needed and help keep the transaction moving at each stage.

Start the conversation early

If you or someone you know is going through a separation, reach out before finalizing the agreement or making decisions about the property. I can confidentially review the estimated buyout, qualification requirements and potential monthly payments so you have a clearer picture of what may be possible.

Paul Macara
Mortgage Broker
(250) 857-4741
paul@macaramortgages.com