How many residential mortgages can I have?

The number of mortgages you can have is unlimited. Rather, people are constrained by their capacity to manage several mortgages or their financial status. First and second mortgages are two mortgages that are typically held concurrently on a same property.

What is a second mortgage Canada?

Second mortgage is a second loan or funding you take on your residential property. Interest rates on second mortgages are usually higher than first mortgages and you need to pay both your mortgages at the same time.

What is a conventional mortgage Canada?

A conventional mortgage in Canada is a loan where the down payment is at least 20% of the property's purchase price. This means that the loan amount is 80% or less of the property's value.

How long can you mortgage a home in Canada?

In Canada, you can mortgage a home for 25 years. If you are a first-time buyer or purchasing a new build you can mortgage it for 30 years. These rules took effect on December 15, 2024.

Can I buy a home with less than a 20% down payment?

The minimum amount you need for your down payment depends on the purchase price of the home. If your down payment is less than 20% of the price of your home, you'll typically need to buy mortgage loan insurance. If you're self-employed or have a poor credit history, your lender may require a larger down payment.

Should I choose a fixed rate or variable rate mortgage?

Interest rates either rise or fall. But a study suggests that homeowners with a variable mortgage fair better than a fixed rate one.

26 Sep Bank of Canada Cuts Rate to 2.5%: What It Means for Surrey & Abbotsford Homeowners and Buyers

Posted at 13:45h in Mortgage Interest Rate by Satbir Bhullar

On September 17, 2025, the Bank of Canada lowered its policy interest rate by 25 basis points, bringing it to 2.5%. This marks the latest adjustment in the Bank’s ongoing effort to balance inflation control with slowing economic growth.

For homeowners and buyers in Surrey, Abbotsford, and the Fraser Valley, this decision carries direct implications. Whether you’re renewing, refinancing, or entering the market for the first time, the rate cut shapes both affordability and strategy.

This blog breaks down what the cut means, how it affects fixed and variable mortgages, and what local buyers should consider heading into late 2025 and 2026.

Why Did the Bank of Canada Cut Rates?

The Bank’s decision was driven by a combination of global and domestic factors:

Trade Pressures: US tariffs have weakened Canada’s exports, which fell 27% in Q2 2025.
Economic Growth: GDP contracted by 1.5% in Q2, while business investment also slowed.
Labour Market: Employment losses in trade-sensitive sectors pushed unemployment to 7.1% in August.
Inflation: Headline CPI fell to 1.9% in August, below target, though core inflation remains near 3%.

By cutting rates, the Bank of Canada is signaling a desire to support growth while keeping inflation anchored near 2%.

Impact on Mortgage Borrowers

Fixed-Rate Mortgages

Bond yields are falling, which means fixed mortgage rates are already trending lower.
Current 5-year fixed mortgages are being offered in the 4.2%–4.6% range, the most competitive levels since 2022.
Many borrowers in Surrey and Abbotsford are considering shorter terms (2–3 years) to stay flexible in case rates fall further in 2026.

Variable-Rate Mortgages

Variable rates will decline slightly with the BoC’s 25 bps cut, but remain higher than fixed.
Current variable rates sit around 4.9%–5.2%, making them less attractive today.
However, some buyers may choose variable terms in anticipation of more cuts in 2026.

See is a variable-rate mortgage the right type for you?.

Renewals: What to Expect

For homeowners renewing in 2025, the environment looks less severe than the “renewal shock” seen in 2023–24.

Borrowers moving off ultra-low 2020–2021 mortgages (1.5–2.0%) still face higher payments, but the gap is shrinking.
In Surrey, many are opting for 2–3 year fixed renewals to wait for potential future cuts.
In Abbotsford, families are considering refinancing to extend amortizations or access equity for other expenses.

Explore mortgage renewal shock in 2025.

Housing Market Outlook: Surrey & Abbotsford

Surrey

Condos and townhomes near SkyTrain expansion corridors remain competitive, with multiple offers returning.
Detached homes are selling slower, but affordability is pushing families toward multi-generational mortgages or co-ownership models.

Related: co-ownership mortgages in BC.

Abbotsford

Detached sales are steady but negotiable.
Townhomes remain in demand due to affordability compared to Metro Vancouver.
Agricultural properties are attracting financing interest, often through refinancing + equity take-outs.

Fraser Valley Overall

Inventory is up about 10% year-over-year, giving buyers more options.
Benchmark prices have stabilized since summer, supported by lower borrowing costs.

More here: What today’s mortgage trends mean for buyers in Surrey & Abbotsford.

Financing Strategies for Buyers and Homeowners

With the Bank of Canada lowering its policy rate to 2.5%, Surrey and Abbotsford households have opportunities to rethink their mortgage strategies. But every choice depends on individual financial circumstances, risk tolerance, and long-term plans.

1. Choose Shorter Fixed Terms

While 5-year fixed rates are competitive, many borrowers are leaning toward 2- or 3-year fixed terms. These provide stability in the near term but allow flexibility if rates fall further in 2026.

2. Consider Blended Mortgage Solutions

Some lenders offer blended rates, combining your existing rate with today’s lower rates. This can help homeowners avoid penalties while still lowering payments.

See refinancing your mortgage: how to do it.

3. Leverage Home Equity Wisely

With property values stable in Surrey and Abbotsford, homeowners may use home equity loans for renovations, debt consolidation, or business investment.
Explore home equity loans in BC.

4. Multi-Generational and Co-Ownership Options

Pooling resources across family members allows buyers to qualify for larger mortgages. This strategy is increasingly popular in Abbotsford detached homes and Surrey townhomes.
Related: multi-generational mortgage strategies.

How a Mortgage Broker Adds Value

Navigating a shifting rate environment can be complex. A broker like Satbir Bhullar Mortgages helps buyers and homeowners by:

Accessing Multiple Lenders: Not all lenders adjust rates equally or at the same time.
Customizing Solutions: From short fixed terms to equity take-outs, strategies are tailored to the household.
Mitigating Risk: Brokers structure applications to protect borrowers from unnecessary fees or penalties.
Planning Ahead: Guidance for refinancing or renewing at strategic points.

For first-time buyers, a broker’s role is especially valuable in securing pre-approvals and mapping affordability. 👉 See tips to get easy first-time home buyer mortgage approval.

Outlook for 2026

The next 12–18 months will continue to test Canada’s housing and mortgage market, but opportunities are emerging.

Rates: Markets expect one additional cut by early 2026, potentially bringing the BoC rate to 2.25% if inflation continues to moderate.
Surrey Market: With SkyTrain expansion and ongoing population growth, condos and townhomes will remain in high demand. Prices are likely to stabilize or rise modestly.
Abbotsford Market: Detached homes with basement suites or larger lots remain attractive to families seeking multi-generational living or rental income.
Fraser Valley Buyers: Those waiting on the sidelines for deeper rate cuts may find themselves competing in a busier 2026 market.

FAQs

How much will my mortgage payments drop after the 25 bps cut?

For every $100,000 of mortgage balance, payments on a variable mortgage may decrease by roughly $13–$15 per month, depending on amortization.

Should I switch from fixed to variable now?

Not necessarily. Fixed rates are already lower than variable. Many borrowers choose short fixed terms to balance stability and flexibility.

Is now a good time to refinance in Abbotsford or Surrey?

Yes, if you need to extend amortization, consolidate debt, or access equity. But penalties for breaking your mortgage should be weighed carefully.

See 5 amazing benefits of refinancing your mortgage.

Will Surrey and Abbotsford housing prices drop if rates fall further?

Unlikely. Lower rates typically increase demand. With limited inventory, especially for townhomes and condos, prices could stabilize or climb.

Can newcomers to Canada access these lower rates?

Yes, many lenders offer competitive newcomer programs with proof of income and down payment. 👉 Learn more: mortgage options for newcomers in Canada.

Conclusion

The Bank of Canada’s decision to cut its policy rate to 2.5% is welcome news for homeowners and buyers in Surrey, Abbotsford, and across the Fraser Valley. Fixed mortgage rates are drifting lower, variable rates have eased slightly, and renewal shocks are less severe than in the past two years.

Still, challenges remain: affordability pressures, employment uncertainty, and the lingering effects of global trade tensions. For buyers and homeowners alike, careful strategy and planning are essential.

That’s where the guidance of Satbir Bhullar Mortgages makes the difference. Whether you’re renewing, refinancing, or stepping into the market for the first time, expert advice ensures you take full advantage of today’s shifting rate environment — while planning ahead for 2026.

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