Welcome to the April issue of my monthly newsletter!

General Stacey Shepherd 8 Apr

Welcome to the April issue of my monthly newsletter!

You may already know that April’s birthstone is a diamond – but did you know that 80% of mined diamonds are used for industrial purposes like cutting, drilling and grinding? It’s a good thing we’re producing man-made diamonds for these processes, because natural diamonds take over a billion years to form. From deep within earth’s crust, they were pushed to the surface by volcanoes 40-55 million years ago.

Diamond mining began in Canada in 1991 in the Northwest Territories. Since then, Canada has become the 3rd biggest producer of diamonds worldwide, accounting for 13-14% of supply. Since those humble northern beginnings, diamond mining has expanded to 7 producing mines as of early 2026. And we’re not done yet! There’s currently a mineral exploration project showing promise for fancy coloured diamonds in Nunavut, plus one more unexpected location for an exploratory project. Can you guess what province it’s in?
What’s Blooming in Real Estate: Spring Market Insights
If you’re looking for a preview of what spring has in store for the housing market in Canada, you’re in the right place. Here’s everything buyers, sellers, investors, refinancers, and everyone else thinking about a change in their housing situation needs to know.
Rates: Most economists, plus the Bank of Canada itself, have confirmed they believe the policy rate is at the bottom for this rate cycle. For mortgages, that means you’re unlikely to see further rate decreases, so it’s a good time to buy or refinance for a 3-to-5-year term. For those with or looking at a variable rate, there is currently a healthy discount, but over the next two years you’re likely to see a series of increases.

Down Payment News: Nova Scotia unveiled a new program for home buyers, reducing the minimum down payment to only 2%. Credit unions are offering the consumer mortgage products, and the provincial government is providing lender insurance on the mortgages. Other provinces are taking note, although we’re yet to see any other program announced so far.

Canadian Real Estate Association: CREA announced a decline in home sales to start the year, but suggested it was weather related rather than a market downturn. The main reason they believe the market is poised for an uptick is the pent-up demand from buyers 25-40 years old. It’s the biggest home buying cohort in Canadian history, and the buyers have been shut out for the past 3-4 years due to affordability and market conditions. But now rates are at their low point, and 75-85% of the group still want to be home owners. Timing is right for action.

Canadian Mortgage and Housing Corporation: CMHC’s 2026 housing report came out, predicting near-flat data across new starts (thanks to construction costs and existing inventory), sales (affordability and carrying costs are still factors), and prices (supply and demand are near equal). Housing formation is delayed thanks to all the uncertainty in the market. But perhaps most of all, the economic uncertainty thanks to tariffs, a looming CUSMA renegotiation, and the general volatility of the US economic policy is impacting the Canadian housing market negatively. We’re seeing less activity overall, weak supply and demand, and a flat spring market in 2026.

US Influence: We know the tariff situation with the US is far from resolved. Most recently, the US Supreme Court struck down the original tariffs, but Trump near immediately implemented blanket new ones using one of many legal workarounds available. Also of note is the July 1 deadline for a CUSMA review, which will redraw trade policy between the three countries. Finally, a new Chair of the US Federal Reserve will be confirmed in May. Trump has nominated Kevin Warsh, who has a history of supporting higher interest rates to control inflation. Independence of the organization is high priority for many, although Trump wants rates lowered and is unsurprisingly creating new ways to influence monetary policy. There’s a lot to watch south of the border.
Old Traditions, New Creations: Classic Crafts to Do Indoors
Crafts are a chance to get off our phones and computers and either relax into a new hobby or connect with others over a creative endeavour. Enter analog arts – crafting’s 2026 reinvention. With a new name and a renewed popularity, an art project is not only fun but also keeps you (or the kids) entertained on any day, rain or shine. Plus, many of these ideas can be
upcycling projects, or you can get the supplies from a thrift store, so you’re keeping the earth in mind as you create!

Embroidery: You literally only need a needle and thread for this one! Dig around in your closet and find a pair of jeans or a sweatshirt that has fallen out of your regular rotation and upcycle it with some custom embroidery. Flowers are an easy starting point, or get a hot glue gun to draw some lettering and stitch over the cooled glue for a nice 3D embroidered letter effect. If you’re lacking creativity and are okay with some planning ahead, you can order embroidery kits or stitch books online as well. Plus, there are no shortage of video tutorials to get you started!

Felting: Perhaps the easiest of all the crafts, all you need here is a felting needle and some wool. Plus, it requires little concentration and even helps with stress relief! Use a cookie cutter to make the loose wool into a shape, then just stab away until it merges into a more solid structure. To make it useful, create a catnip toy by felting a bottom later, filling the middle with catnip, and felting another layer on top. Really focus on the edges if you’re going that route!

Collage: Gather up whatever you have at your house, like magazines, stickers, ticket stubs, maps, wrapping paper, ribbons, books you’re done reading, flyers, or any other flat scraps. If you want to start small, get some Bristol board and cut out a bookmark for your first collage. And if you love the art, expand into a full junk journal and make a new page whenever you want! Collages are also a great way to make a vision board, or the 2026 version, a bingo card. After you arrange and overlap the scraps how you want them, use roll on glue dots to hold things in place, or mod podge for something that lasts longer and seals better.

Crochet: As the most complicated of the crafts here, a tutorial with pictures or video is in order. Here’s one option, but you can find tons more on YouTube or by doing a quick search on nearly any platform. You’ll need yarn and at least one crochet hook, and you’ll want to be sure they pair together. Start with a basic chain, and build up to a scarf or a cuff for those old jeans you dug out to embroider.

Bedazzling: The newest craft in this lineup will take some patience and attention to detail. For it you’ll need flat-backed gems or rhinestones (a lot more of them than you might imagine, and a couple sizes), bedazzling tweezers or a wax pencil to pick up the gems, glue (Gem-tac for fabric, E6000 for hard surfaces), and something you’d like to bedazzle (clothes, a mug, a hat, a book, whatever!). Map out your surface area to bedazzle, including any words, or use a stencil if you have a shape in mind and aren’t a great freehand artist. Work in small sections, either a circular area about 3cm wide or a shorter and longer section if you’re going in straight lines. Apply the glue to the area and let it begin to get tacky for a couple minutes before you start placing the gems. Use an offset or honeycomb type pattern to get the rhinestones as close to each other as possible. Once you’re done, consider sealing the project to make it last longer!

If you do give any of these a go, I’d love to see your creations!
Economic Insights from Dr. Sherry Cooper
First-Time Homebuyers: It’s Time to Get Off the Fence

The Bank of Canada and the U.S. Federal Reserve both held interest rates steady on March 18. Weakening job markets are competing for attention against rising oil prices driven by the war in Iran. 
Both Governor Macklem and Chairman Powell acknowledged that inflation will likely rise, but said they would “look through” the price pressures given the uncertainty around how long the conflict will last.

Home prices kept falling in February (the latest data available), extending the longest price decline on record. According to Mortgage Loan News (MLN), CREA’s benchmark home price has now dropped for 15 consecutive months.

Prices are now down over 20% from their pandemic peak in Q2 2022, when the overnight rate sat at just 0.25%. After adjusting for inflation, the real decline in home prices is roughly 30%—an unprecedented drop.

The 5-year average price change has turned negative (–3.7%) for the first time since 1999. If you have been waiting for prices to fall further, this is the window. As MLN puts it, “the average Canadian who bought a home in February 2021—near the start of the pandemic frenzy—is now underwater on a nominal basis.” That means many homeowners owe more than their home is currently worth, which also affects their ability to refinance.

Trump’s Latest Salvo to Impose Tariffs  

The Trump administration made waves this week with a new move that could eventually lead to tariffs on Canadian goods currently protected by the Canada-U.S.-Mexico free trade agreement (CUSMA).

The U.S. Trade Representative (USTR) launched Section 301 investigations into 60 countries—including Canada and Mexico—to examine whether they are failing to block imports made with forced labour.

Washington trade experts almost universally view this as a pretext. The real goal, they say, is to replace the tariffs the U.S. Supreme Court struck down in February under IEEPA (the International Emergency Economic Powers Act), before the stopgap Section 122 duties expire on July 24, 2026.

Clark Packard of the Cato Institute called Canada’s inclusion in the list of sixty targeted countries “unbelievably shocking” and called the Section 301 process a “show trial” in which the USTR acts as “detective, prosecutor, judge, and jury.” Inu Manak of the Council on Foreign Relations said the probe “has nothing to do with forced labour.” Andrew Hale of Advancing American Freedom accused the administration of acting “in bad faith” by compressing a 12-month process into five months.

This raises two questions: Will the administration succeed in imposing new tariffs? And will those tariffs hit goods currently protected under CUSMA?

New tariffs under Section 301 are almost certain. Section 301 gives the USTR wide-ranging power to act on its own. Unlike IEEPA, this law has withstood legal challenges for decades—it was the basis for Trump’s first-term tariffs on China, which the courts upheld. The forced-labour framing is convenient because it is nearly impossible for any country to prove that no goods made with forced labour enter its borders.

The five-month timeline is aggressive—these investigations normally take about a year, and running sixty of them at once is untested. Still, the law does not set a strict minimum. Legal challenges are likely, but the administration will probably secure tariff authority before the courts step in.

That said, several factors make it unlikely that tariffs will be applied to CUSMA-protected goods:

  • It’s more useful as a threat. The CUSMA review officially begins in July 2026. The threat of pulling the trade-agreement exemption gives the U.S. leverage in those negotiations. Actually doing it would devastate North American supply chains—especially in the auto sector, where Canada and Mexico are top exporters to the U.S.
  • It would hurt America, too. Blanket tariffs on Canadian goods would disrupt U.S. manufacturing that depends on Canadian energy, aluminum, and critical minerals.
  • Politics favours restraint. With U.S. midterm elections in November 2026 and inflation already a top voter concern, broad tariffs that push prices higher would be politically costly for Republicans.
  • History suggests exemptions will continue. Even under IEEPA, the administration exempted CUSMA-compliant goods. The replacement Section 122 tariffs did the same.

The most likely outcome: Section 301 is used to impose targeted tariffs on specific Canadian sectors—manufacturing, textiles, and possibly autos—while CUSMA-compliant goods remain broadly exempt. Negotiations will be tense, especially if Canada resists concessions on dairy (supply management), softwood lumber, or defence spending during the summer review.

The “forced labour” pretext hands the Trump administration a powerful card. Whether they play it against the entire CUSMA framework depends on how talks with PM Carney unfold this summer. As Manak advises Ottawa: be patient and avoid major concessions before the midterms—the political landscape could shift significantly following the vote.
If you’ve gotten this far and are wondering about that exploratory diamond project – it’s called the Star-Orion South Diamond Project and it’s in Saskatchewan! The mines are projected to hold over 70 million carats of diamonds which will be extracted over the 34-year lifetime of the mines.

In other news this month, April 22 is Earth Day, so now is the time to think of something you could do for the planet. A few ideas: a neighbourhood cleanup, opting not to drive your car for the day, or even planting a tree.

Here’s to some nicer weather around the corner and I hope to see you back here in May!

General Stacey Shepherd 4 Mar

Welcome to the March issue of my monthly newsletter!

March is peak maple syrup time here in Canada – when the sap starts to flow from tapped trees into sugar houses across Quebec (where 90% of Canada’s liquid gold is produced). Maple syrup not only tastes great but also has zinc, magnesium, B2, calcium, potassium and even antioxidants. It’s unrefined and unprocessed and offers a lower glycemic index compared to refined sugars. So head on out to a sugar shack (or grocery store) and indulge in a piece of healthy Canadian heritage!
Fraud Awareness: Essential Info for Today’s Digital World
March is fraud awareness month, a great reminder that no matter who you are, scams are lurking right around the corner (or in the next email, call or post!). 2026 will undoubtably throw more sneaky, compelling, and downright dastardly scams than ever. So, we’re going to look at how and why fraud scams work, spotlight the techniques scammers use, give you tips on how to recognize a scam, and teach you what you can do to protect yourself.
Why do scams work? 

Here are my 4 E’s of an effective scam:

  1. Ego: Some people think they are too smart to fall prey. Their overconfidence says they don’t need to be cautious and that exposes them to unnecessary risk.
  2. Evolution: Scams are diverse and sophisticated – it’s not a Nigerian Prince asking you to share his millions anymore! The constant changing and diversification of scams is fuelled by new technology, making it harder to spot a fake.
  3. Education: A lack of awareness means you’re a step behind a fraudster, and you’re unlikely to recognize the newest and greatest plots.
  4. Exposure: We’re online a LOT, constantly seeing fake ads, sharing our email addresses to get discount codes, commenting on social media posts – you name it. We constantly expose ourselves to predators.

Techniques Scammers Rely On

The first strategy scammers use is emotional manipulation. They’ll create uncomfortable feelings like fear or urgency to get you to act quickly. They’ll also go the sympathy and goodwill route to appeal to your good nature and empathetic side so you help them.

The second strategy scammers use is cognitive bias. It’s our predisposition to a certain mindset that would make you more willing to comply. A few examples:

  • Optimism Bias: You don’t automatically suspect a scam
  • Truth Bias: You assume people are telling the truth
  • Authority Bias: You trust and comply with authority figures (like police or government)

The third strategy scammers use is influence. They’ll compliment you or pretend to have similar likes so they build a relationship with you. They’ll act as experts or authorities so that you trust them. And, they’ll commit to it, starting slow and building over time and increasing their requests.

How Did Scammers Get So Good?

They practice. They aren’t afraid to fail. They don’t take no as an answer. And, perhaps most importantly, they embrace technology. It catches victims unaware and drastically improves their reach and persuasiveness. Here are their fanciest tools.

  1. AI: AI makes it easy for scammers to create professional-looking websites, social media content, online ads, fake photos, persuasive emails and texts, and so much more.
  2. The Dark Web: Scammers can buy nearly any data they want, plus fake identities, malware tools, stolen credit card numbers, ransomware, a fake escrow service or even hire hackers.
  3. Deepfakes: Fake videos that clone real people and real voices are easy to create with free or cheap specialized software. These fake videos can promote products, laud fake charities or causes needing donations, even endorse ponzi schemes and pump-and-dump investments.
  4. Spoofing software: Fraudsters can mimic legitimate phone numbers, emails, or websites and even trick you into thinking you’re dealing with a real person you know.

Red Flags 

Scammers aren’t just straight up asking for your SIN and banking info anymore. Here are some common themes to watch for:

  • Urgency, including limited time offers or requests to act now
  • Threats, like an account will be closed, you’ll be arrested, or a fine is forthcoming
  • Uncommon payment forms, like wanting gift cards, cryptocurrency, or Venmo transfers
  • Secrecy, warning you not to tell friends or family or alert law enforcement
  • Poor quality, like spelling errors, weird links, or other telltale signs AI has been hard at work
  • Reciprocity, as in you get hired but you pay for your own training, or you won a prize but you have to pay to receive it

How to Avoid Falling for Scams 

If you don’t want to be blindsided by a scam, the first step is to know that scams exist. Staying current on the latest schemes will go a long way. Be skeptical about almost everything online! Installing ScamShield, call blocking or anti-virus software can help prevent a scam artist from contacting you. Multi-factor authentication is a great way to stop scammers from accessing your online accounts.

If you get faced with a scam, take a step back and think about the legitimacy of the situation. Call a trusted friend or loved one and run the situation by them. Just hearing it out loud might make you come to your senses! Practice saying no. Disconnect from the situation and reach out to the company independently (like the CRA, bank, cell phone company or store) to confirm the request or offer is real. Finally, monitor your accounts for any unauthorized activity if you think you might have given away too much information.

Conclusion

If you’d like to learn more, the FCT fraud insights centre is a great place to start. Or, get your information in video form in Mastercard’s Anatomy of a Scam docuseries. Hopefully shining a spotlight on these tactics keeps your safety top of mind. Or as Bert and Gert would say, “Stay Alert, Stay Safe”!
Home Décor Trends to Elevate Your Space
Minimalism is dead.

In 2026 we’ve moved on, adding colour, vibrancy, new features and personality galore into our homes.

Here are the biggest trends you can keep your eyes (and budget) set on this year:
Grandma Chic: If your birth year starts with 19, you’ll probably feel nostalgic about this trend. Things like florals, ruffles and pleated skirts are back on couches and chairs. Lamp shades, antique clocks, China cabinets and anything else you saw in your grandma’s house in the 80’s is back in style. Your entire house doesn’t need grandma’s approval, but it’s time to proudly and stylishly display any heirlooms she passed down.

Dark Design: Terracotta, dark green, chocolate brown, darker woods… the stylish home has plenty of these colours in 2026. If you want to try it, consider painting your existing cabinetry, adding a chair or couch in a moody shade, or even choosing an area rug that does double duty in style and function while it hides the fact you haven’t vacuumed this week (or month).

Feeling Blue: Blue may not be the Pantone colour of 2026 – but it’s everything in fashion, design, social media content, makeup, even dining. Any shade will do, from icy to electric. It’s super easy to add to your home with things like furniture, dishes, artwork, rugs, or even knickknacks (those are back too… keep reading).

Bidets: Thanks to the explosion in bidet popularity, it’s easy to find an attachment, toilet seat, sprayer or entirely new toilet to bring the bidet lifestyle into your home. Plus, they reduce toilet paper use, saving your home plumbing and the environment! They’re fairly easy to install yourself so if you’re keen on trying one, a trip to your local hardware store is probably all you need.

Walls Are the Art: Wallpaper is back, baby! There are infinite cool patterns and colours to choose from, including some really interesting and personal choices. And don’t forget the fifth wall to every room – the ceiling! Paint it or wallpaper it too, adding drama, interest, and even heights to the space.

Personal Storytelling: This unique approach is about telling your own story, piece by piece. Any room can feel welcoming because nothing is too precious or perfectly styled. It won’t happen overnight though. It’s a rebellion against fast fashion and staged decorating, as you collect everything over your lifetime rather than in one trip to Pottery Barn. Display your travel souvenirs, favourite knickknacks, unique furniture and thrifted gems and enjoy sharing a memory or telling an origin story of your favourite treasures to your guests.

What’s Out

If you’re looking to thoughtfully declutter as you modernize or redecorate your home, here are the top three things to part with.

  • Fake plants. And its cousin, the 2000’s oversized vase with dried wheat.
  • Mass produced wall art. That print of le chat noir or Campbell soup are heading for retirement (or the attic for when they come back in style).
  • Word art. We don’t live laugh or love this look anymore.

I’d love to hear what interior decorating styles and trends you have going on – and if you’re looking at any of these trends to update your existing style. If your home needs a bigger upgrade than just some new design elements, I can always help you sort through the financing options. Call text or email me anytime!
Economic Insights from Dr. Sherry Cooper
Last month, the US Supreme Court issued a verdict on the tariff lawsuit. The ruling invalidates a large portion of the tariffs that Trump implemented in 2025.

However, there are other ways that he can introduce import taxes. Here’s a chart showing some of the other means these tariffs could be put back on the table:
Realistically, most affected tariffs will likely be reinstated by other means – and a temporary blanket 10% tariff already has. Trump has already ordered a raft of trade investigations that should allow him to enact more permanent tariffs, too.

While this could be good news for Canada, in the immediate future, it only increases uncertainty, further dampening consumer and business confidence and increasing the likelihood that spending decisions, whether for housing or business fixed investment, will be postponed.
This Sunday, March 8 is International Women’s Day! It’s the 115th anniversary of the celebration of women’s achievements, raising awareness about discrimination, and furthering gender parity. It’s an inclusive day to celebrate all the women in your life.

My parting words for this month are “think green”! March is the month for all things green; from the dye in your St Patrick’s Day beer to the sprouts you’re hoping to see in your garden soon enough. Plus, who doesn’t want the calming effects, reduced stress, and increased creativity that the colour brings!

Have a great month and I look forward to seeing you back here in April.

The Canadian Economy Shrinks by 0.6% in Q4, Owing to a Decline in Business Inventories

General Stacey Shepherd 2 Mar

The Canadian Economy Shrinks by 0.6% in Q4, Owing to a Decline in Business Inventories
Statistics Canada reported this morning that the Canadian economy contracted by 0.6% at a seasonally adjusted annual rate, a significant reversal from the 2.4% expansion posted in Q3. The weaker growth rate reflected a steep decline in business inventories, which was partially offset by increases in household spending, exports, and government capital spending.

Economists surveyed by Bloomberg were expecting a 0.2% annualized decline over the last three months of 2025, while the Bank of Canada projected flat growth.

As US tariffs weighed on Canadian exports for much of the year, real GDP increased by 1.7% in 2025, marking the slowest annual growth since the economy contracted in 2020 owing to the COVID pandemic. Lower exports, particularly to the United States, were the main contributor to the slower rise in GDP in 2025.

A preliminary estimate suggests real GDP remained unchanged in January, after increasing by 0.2% in December, slightly stronger than economists’ estimate of 0.1%.

Exports rose 1.5% in the fourth quarter, after increasing 0.9% in the third quarter. The growth in the fourth quarter was led by higher exports of unwrought gold and of unwrought aluminum and aluminum alloys. Despite the increases in the latter half of the year, exports fell 1.7% in 2025, as shipments to the United States did not fully recover following the drop in the second quarter.

Imports edged up 0.3% in the fourth quarter, as higher imports of computers, clothing and footwear, and metal ores were largely offset by lower imports of pharmaceutical and medicinal products. For the year, imports were down 0.4% in 2025, driven by the 2.9% decline in the third quarter.
The better-than-expected Q3 gain will not be sustained in Q4, as Statistics Canada’s advance estimate for October showed industrial gross domestic product fell at a -0.3% monthly pace.

The current overnight policy rate of 2.25% remains stimulative, but until the likely outcome of trade negotiations with the US is resolved, Canada’s economy will be on shaky ground. It is unclear whether the Canada-US-Mexico free trade agreement will be extended beyond this year. If not, Canada will be in for a significant trade policy redo as it seeks replacement markets for its exports.

Household spending rose 0.4% in the fourth quarter after declining 0.2% in the third quarter. Higher expenditures on rent and financial services in the fourth quarter were partially offset by lower spending on new passenger vehicles and alcoholic beverages, as overall expenditures on goods declined for a second consecutive quarter.

On an annual basis, household final consumption expenditure was up 2.3% in 2025, keeping pace with the 2.2% growth in each of the previous two years. The rise in 2025 was led by increased household spending on financial services and rent.

Total capital investment rose 0.8% in the fourth quarter, driven by increased government investment in weapons systems. In contrast, business capital investment edged down 0.1% in the fourth quarter, as both residential and non-residential investment decreased. These declines were moderated by increased business investment in machinery and equipment, primarily computers (+19.6%) and intellectual property products, namely software (+0.7%).

Annually, total capital investment increased 1.4% in 2025, led by higher government investment in weapons systems (+45.9%) and engineering structures (+6.7%). Business investment rose 0.3% in 2025, as higher residential construction (+1.0%) and non-residential construction (+1.6%) were largely offset by weaker investment in machinery and equipment (-3.5%). The year 2025 was the third consecutive year in which government capital investment contributed more to GDP growth than business capital expenditures.

Business residential investment declined in the fourth quarter, led by decreased ownership transfer costs (-2.4%), a measure of resale market activity, and lower renovations (-1.3%). New construction (-0.5%) also declined in the fourth quarter due to lower work put in place for single- and apartment units.

Higher business residential investment in 2025 represented the first annual increase since 2021, as increased new construction (+1.0%) and renovations (+2.7%) more than offset the decline in ownership transfer costs (-3.4%).

Bottom Line

While weaker-than-expected Q4 GDP figures might normally trigger an easing move by the Bank of Canada, the Governing Council has made it very clear that it remains concerned about inflation. Tariff uncertainty is especially high now that the Supreme Court has found the Trump administration misused the International Emergency Economic Powers Act (IEEPA) to impose sweeping, open-ended tariffs — striking down the legal foundation for a central pillar of the administration’s trade strategy.

The decision removes the fastest way to impose broad country-level duties, but it does not end the tariff debate. Other statutory authorities remain in play, and businesses and trading partners are left to assess what comes next.

The ruling also lands amid sustained political pressure around affordability, which may shape how aggressively trade tools are redeployed. Even if tariff rates decline, businesses must now assess whether alternative authorities will be used to reimpose them. For the real economy, restoring stability may matter as much as reducing tariffs themselves.
Dr. Sherry Cooper
Chief Economist, Dominion Lending Centres
drsherrycooper@dominionlending.ca

Welcome to the February issue of my monthly newsletter!

General Stacey Shepherd 3 Feb

February, the month best known for Superbowl, groundhogs, Mardi Gras, and adding an extra day to our calendars every fourth year. But did you know there was once (and only once in the past 2000+ years) a February 30th?

From 1582-1752, most of the world was migrating from the Julian calendar to the Gregorian calendar. The longer a country waited to change over, the more time you needed to add or subtract from your calendar. In 1712, Sweden was making their move – and implemented a one-time-only February 30th to make the transition. Imagine being born on a day that never happened again for the rest of your life?!

Reverse Mortgages: A Modern Tool for Retirement Planning

Visualize this: It’s 1986. You’re an accountant in Vancouver. You’re seeing seniors living longer, healthier and more self-sufficient lives than ever. But they don’t have enough cash to pay their day-to-day expenses.

You want to help them. So, you create a financial product that lets them access home equity without giving up ownership.
You call it… the Canadian Home Income Plan, and lovingly refer to it as a CHIP. Your product – a reverse mortgage – gives seniors a way to stay in their homes, access the equity without selling, and have complete flexibility and control over the funds. It has a slow start, but over the next decade it catches on across Canada.

Fast forward to 2026 and the reverse mortgage has evolved into a useful tool for so many Canadians. We’ve seen a 40% increase in usage of reverse mortgages in the past 3 years alone! There are several reasons for this, including skyrocketing property values, inflation driving up the cost of living, people living longer and healthier after retirement, and a whopping 71% of those over 75 still owning homes. So, older Canadians are opting to supplement their income with home equity to maintain or improve their standard of living in retirement.

What are the Basics of a Reverse Mortgage?

A reverse mortgage is available exclusively to homeowners aged 55 and older; all applicants must meet that minimum age. You can access anywhere between 15-55% of the value of your home, with your age and the location playing the biggest roles in the amount.

With a reverse mortgage, you can take out money in four different ways:

  1. Use it like a line of credit
  2. Take out a lump sum of cash at any time
  3. Arrange regular ongoing monthly payments
  4. Use a combination of options 2 and 3 above

Also of note is that you must live in the home, maintain the property, and ensure property taxes and insurance are both paid and current. You can get up to 3 reverse mortgages and even qualify for one on multi-unit properties (up to 6 units).

What are the Benefits?  

A reverse mortgage doesn’t depend on your credit score or your income for qualification. In fact, you don’t need to have any income at all! You also maintain complete ownership of your home and continue to live in it and build equity.

Another set of benefits are that the funds aren’t considered income, so they’re not taxed and don’t impact any pension or benefits you qualify for. You can even use this as part of your tax strategy (do consult a financial planner about this though).

What Can I Use a Reverse Mortgage for? 

These funds are extremely flexible, so you can use them for nearly anything. A few common ways Canadians use them are:

  • Home renovations or upgrades
  • Helping family (like a gifted down payment, a living inheritance, or a paying for a wedding)
  • Buying another property
  • Paying off higher interest debts
  • Funding your lifestyle, a vacation, or other expenses

What Will a Reverse Mortgage Cost?  

There are two types of costs you’ll encounter with a reverse mortgage.

First, like any mortgage, you’ll be charged interest. The rates are typically 1-2% higher than a regular mortgage, but you have the same flexibility with fixed or variable rates in various terms.

Second, you’ll have upfront costs to fund the reverse mortgage. You’ll need to get independent legal advice, an appraisal on your home, and you’ll most likely pay a lender or setup fee. Those three items will typically cost $1500 – $3000. You might be able to negotiate the rate or even find a promotion that waives the setup fee, so using a mortgage professional to shop around could save you money.

How do I Get Out of a Reverse Mortgage? 

Much like a regular mortgage, you can pay off the amount owing in full at the end of the term without penalty. You can also make regular payments to bring down the balance. Lenders may also impose early repayment fees depending on the terms and conditions.

Alternatively, if you sell the property, you repay the amount in full at the time of sale. In the case of death, your reverse mortgage must also be repaid in full, before your estate is disbursed.

Are Reverse Mortgages Regulated? 

Yes. The industry is regulated by the Office of the Superintendent of Financial Institutions (OSFI). They’re considered a non-recourse loan, meaning you’ll never have to repay more than the property is worth or sold for. You often see this feature advertised by lenders as a ‘no negative equity guarantee’, but know that’s a legal requirement here in Canada.

Are Reverse Mortgages a Scam?  

No. They’re a legitimate and useful way for people to access home equity without selling their home. They’ve been approved and endorsed by the Canadian Association of Retired Persons (CARP), and members can even qualify for a $250 fee rebate upon funding. Plus, the Ontario Teachers Pension Plan invests in one of the main reverse mortgage companies.

However, like any financial product, the reverse mortgage market sees its share of scams. Be sure to use a licensed and experienced mortgage professional to avoid them. Look out for anyone one asking you to sign over the title to your home (never do this), or contractors offering to do the paperwork and get funding for you to fund upgrades or renovations. Those are big red flags!

Are there Alternatives to a Reverse Mortgage?

You always have options! A Home Equity Line of Credit (or HELOC) lets you take out equity and offers up to 80% of the value of your home (although you need income to qualify). You could also sell your home and downsize, rent, or move into another type of residence. No matter what route you go, you’ll want to look at the total cost of each option to help you make the best decision.

What Are the Next Steps to Getting a Reverse Mortgage? 

I’d love to help you explore your options. There are several Canadian financial companies that offer reverse mortgages in 2026, each with different fees, requirements and features. I would be happy to compare them and help you pick the best choice for your unique situation. Let’s set up a call to discuss.
Economic Insights from Dr. Sherry Cooper

Amid significant shifts in global trade dynamics, Canada is redefining its position on the world stage. While the United States continues to make headlines with its assertive trade policies, other nations—Canada included—are forging ahead, adapting and expanding their international relationships.
Last week, Prime Minister Mark Carney’s visit to Beijing marked the first Canadian prime ministerial trip to China since 2017, culminating in a landmark trade agreement. Canada lowered its tariff on Chinese electric vehicles, while China reciprocated by reducing tariffs on Canadian canola seed. Carney emphasized the importance of renewing and strengthening the Canada-China partnership, asserting that these efforts signal a move toward a new global order, with Canadian exporters increasingly seeking opportunities beyond the US market.

Impact on Economic Sectors

The prevailing uncertainty surrounding trade—driven by tariffs and shifting alliances—has contributed to a decline in housing market activity, particularly in Ontario and British Columbia. In contrast, Quebec’s housing market remains more robust, although tariffs on aluminum and lumber have dampened broader economic activity in the province and across Atlantic Canada.

Despite widespread concern about these developments, Canada’s outlook for broadening trading partnerships is stronger than many anticipate. The country possesses substantial competitive advantages that position it well to meet international demand over the next decade.

Canada’s Competitive Advantages

Canada’s strengths lie in its rich natural resources, including oil and gas, uranium, critical minerals, food and agriproducts, fresh water, and Arctic access. These endowments provide a solid foundation for trade diversification.

Historically, 75% of Canadian exports have gone to the US, with agreements like CUSMA offering tariff protections for many Canadian goods. However, recent developments and strategic initiatives are opening new opportunities, especially in the energy and agri-food sectors, where Canada’s geography, resource reserves, and trade agreements align with growing demand from Europe and Asia.

Cross-Cutting Advantages

Resource Endowments

Canada is a leading global supplier of scarce commodities, including crude oil, natural gas, potash, canola, and other agri-food products. Its status as the world’s largest producer of potash is crucial to the US fertilizer supply, and there is significant potential to expand exports to major importers like Brazil, India, and China.

Trade Architecture

Canada benefits from a robust network of trade agreements, including CETA with the EU and CPTPP with Asia-Pacific economies. These agreements lower barriers for exports to Europe and Asia, offering advantages over non-preferential competitors. The country’s trade strategy now aims for a 50% increase in overseas (non-US) exports, a goal already being met ahead of schedule in some sectors.

Reputation and Standards

Canada’s reputation as a politically stable, rules-based, and relatively low-carbon supplier is increasingly valued by global buyers prioritizing security of supply, especially in energy and food. This reputational premium is particularly important for European and Indo-Pacific customers seeking to mitigate risks posed by Russia and certain Middle Eastern suppliers.

Sectoral Opportunities

Oil and Gas: West Coast Egress to Asia

The Trans Mountain Expansion (TMX) and LNG Canada projects have significantly increased Canada’s pipeline and liquefaction capacity, providing direct access to Pacific markets. Since 2017, TMX has enabled a 130% rise in energy exports to overseas destinations, with LNG shipments reaching Japan, South Korea, China, and Malaysia. Chinese purchases of Canadian oil have reached all-time highs.

For North Asian markets, Canadian Pacific Coast LNG shipments are much faster than those from the US Gulf Coast, cutting approximately 20 days off voyages to South Korea. This geographic advantage, combined with Canada’s vast gas reserves and political stability, makes it a structurally competitive supplier to Asian gas markets.

Following the Ukraine conflict, Europe and Asia have strong incentives to diversify their energy sources away from Russia. Canada’s new export infrastructure directly supports this demand, with the global LNG market expected to remain tight through the mid-2020s, offering a window for new Canadian supply to secure long-term contracts.

Metals, Steel, Aluminum, and Autos: Input Strength vs. Finished Goods

Canada’s primary advantages are in upstream metals and minerals, such as iron ore and critical minerals, rather than in finished steel and automotive products. Metal and non-metallic mineral exports have grown rapidly—up about 74% since 2017—driven by gold and other metals.

For steel, aluminum, and auto parts, Canada’s ability to market low-carbon content and secure supply is a key differentiator, especially in jurisdictions tightening carbon and supply-chain regulations. While Canada’s participation in multiple free trade agreements provides tariff preferences in Europe and Asia, the integration and scale of the North American auto platform continue to present challenges for diversification in finished goods.

Agriculture: Canola, Potash, and Food Products

Canada plays a central role in global canola and potash markets and faces strong demand from large agricultural economies outside the US. The country supplies roughly 85–90% of US potash imports but is positioned to pivot toward growing markets such as Brazil, India, and China if US trade becomes less attractive.

China is a major buyer of Canadian raw canola seed and has greater processing capacity than other markets. Canada’s access to Asian and European trade channels further supports diversification. According to Farm Credit Canada, approximately $12 billion CAD in food and beverage exports could be redirected from the US to other markets or to domestic buyers, highlighting significant potential for reallocation.

Canada’s surplus potash supply helps keep domestic fertilizer costs low, allowing grain and oilseed exports to remain competitively priced in third markets. Combined with high standards for food safety and sustainability, Canada presents a compelling value proposition in premium and bulk agri-food markets.

Hydropower and Virtual Water

In the near term, “water exports” are primarily realized through hydroelectric power from resource-rich provinces, rather than bulk water shipments. These hydro resources support green power exports, particularly to the northeastern US, and may contribute to future cross-border electricity grids.

As climate risks grow, Canada’s abundance of water and arable land creates long-term advantages in producing water-intensive goods such as grains, oilseeds, forestry products, and certain metals—positioning the country to supply water-stressed regions globally.

Policy and Political Economy

Canada’s federal strategy now explicitly positions trade diversification as central to risk management and economic resilience. Dedicated tools and financing, including Export Development Canada and trade commissioner services, are helping exporters access non-US markets. Combined with private-sector investments in logistics and port capacity, these efforts continue to reduce the costs and barriers associated with reorienting exports.

Conclusion

Canada’s structural advantages enable a gradual reduction in marginal dependence on the US, particularly in energy, agri-food, and some metals and advanced manufacturing sectors. However, full substitution in autos and certain processed goods remains unrealistic and inefficient due to the deep integration of the North American market. Overall, Canada’s expanding network of trading partners and robust resource base position it well for a resilient economic future.

As these successes mount, Canadian consumer and business confidence will rise, re-igniting pent-up demand in housing. As we move through this transition year, optimism will mount, and reduced housing prices, combined with lower mortgage rates, will return housing activity to more normal levels in the hardest-hit provinces of Ontario and British Columbia.

That’s it for February!

A reminder that Wednesday February 25 is pink shirt day, which aims to raise awareness of bullying in schools, workplaces, homes, and online. Learn more about the cause on their website.

From the bottom of my heart, wishing you a great month ahead and hope to see you back here in March.

Interest Rate Hike from the Bank of Canada

General Stacey Shepherd 2 Mar

This article is from Dr Sherry Cooper about the Bank of Canada interest rate hike.

Bank of Canada Starts Hiking Rates, Signalling More To Come

The Governing Council of the Bank of Canada raised the overnight policy rate target by a quarter percentage point in a widely expected move and signalled that more hikes would be coming. This is the first rate hike since 2018. In a cautious stance, the Bank announced it was continuing the reinvestment phase, keeping its overall Government of Canada bonds holdings on its balance sheet roughly stable.

The Bank’s press release highlighted the major new source of uncertainty provided by the unprovoked invasion of Ukraine by Russia and suggested that it is a new source of substantial inflation pressure. Prices for oil, metals, wheat and other grains have skyrocketed recently. Moreover, this geopolitical distention negatively impacts confidence worldwide and adds new supply disruptions that dampen growth. “Financial market volatility has increased. The situation remains fluid, and we are following events closely.”

The Bank commented that economies have emerged from the impact of the Omicron variant more quickly than expected. Demand is robust, particularly in the US.

“Economic growth in Canada was very strong in the fourth quarter of last year at 6.7%. This is stronger than the Bank’s projection and confirms its view that economic slack has been absorbed. Both exports and imports have picked up, consistent with solid global demand. In January, Canada’s labour market recovery suffered a setback due to the Omicron variant, with temporary layoffs in service sectors and elevated employee absenteeism. However, the rebound from Omicron now appears to be well in train: household spending is proving resilient and should strengthen further with the lifting of public health restrictions. Housing market activity is more elevated, adding further pressure to house prices. Overall, first-quarter growth is now looking more solid than previously projected.”

Canadian CPI inflation has risen to 5.1%, as expected in January, well below the 7.5% level posted in the US.” Price increases have become more pervasive, and measures of core inflation have all risen. Poor harvests and higher transportation costs have pushed up food prices. The invasion of Ukraine is putting further upward pressure on prices for both energy and food-related commodities. All told, inflation is now expected to be higher in the near term than projected in January. Persistently elevated inflation increases the risk that longer-run inflation expectations could drift upwards. The Bank will use its monetary policy tools to return inflation to the 2% target and keep inflation expectations well-anchored.”

The final paragraph of the Bank’s press release speaks with great clarity: “The policy rate is the Bank’s primary monetary policy instrument. As the economy continues to expand and inflation pressures remain elevated, the Governing Council expects interest rates will need to rise further. The Governing Council will also be considering when to end the reinvestment phase and allow its holdings of Government of Canada bonds to begin to shrink. The resulting quantitative tightening (QT) would complement the policy interest rate increases. The timing and pace of further increases in the policy rate, and the start of QT, will be guided by the Bank’s ongoing assessment of the economy and its commitment to achieving the 2% inflation target.”

Bottom Line

The Bank of Canada has made a clear statement regarding the outlook for a normalization of interest rates. We expect a series of rate hikes over the next year. Expect another 25 basis point increase following the next meeting on April 13. The increased uncertainty and volatility arising from the war in Ukraine is front of mind worldwide. Still, it will not deter central banks from tightening monetary policy to forestall an embedded rise in inflation expectations.

The Bank of Canada has postponed Quantitative Tightening, for now, a prudent move in the face of geopolitical uncertainty.

Credit Scores

General Stacey Shepherd 16 Feb

Credit Score, do you know what your credit score is? This score is a large piece of your mortgage application. Good credit scores are 680-900. I look at credit every day and can give you tips to increase your credit score in a few months.
Sometimes paying down a credit card will increase your score drastically. It is really important to make sure your cards do not go over limit or even 50% of your limit. If your card is a limit of $5000 you should not put more than $2500. Pay your bills on time every month.
The two companies lenders use to check your credit are Equifax and Transunion.

Check out Equifax’s site on What is a good Credit Score;
https://www.consumer.equifax.ca/personal/education/credit-score/what-is-a-good-credit-score/

Mortgage Rates

General Stacey Shepherd 25 Jan

Let’s lock in your mortgage rate today! Mortgage rates are increasing. I can have a lender hold a rate for you for 120 days. If rates decrease in that time I can get you the lower rate. I make it easy for you.