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.

17 Jul How to Navigate BC’s Mortgage Market in a Soft Landing Economy: A Guide for Homeowners and Buyers

Posted at 13:22h in Home Purchase Mortgage in Abbotsford by Satbir Bhullar

British Columbia’s mortgage landscape in mid-2025 is being reshaped by a rare economic backdrop: a “soft landing.” As the Bank of Canada holds its policy rate at 2.75% following a June cut, many are asking what this means for mortgage decisions. For homebuyers and homeowners in Surrey, Abbotsford, and surrounding areas, it’s a moment to rethink strategy—whether buying, renewing, or refinancing.

This guide explains what a soft landing really means, how it’s influencing fixed and variable mortgage rates, and what BC residents should consider for the remainder of the year.

What is a Soft Landing, and Why Does it Matter?

A “soft landing” is an economic term describing a slowdown that avoids a recession. In Canada’s case, the economy is cooling—growth is modest, inflation is easing, and unemployment is rising slightly—but without crashing.

For mortgage markets, this is significant. It signals:

Easing inflation pressures: Allowing interest rates to potentially fall.
Stabilizing home prices: Encouraging buyer activity, especially among first-time buyers.
Improved affordability outlook: Particularly in suburban regions like Surrey and Abbotsford.

How Mortgage Rates Are Responding in Mid-2025

As bond yields fall, we’re seeing a gradual decline in fixed mortgage rates. Five-year fixed rates, in particular, are trending lower, offering relief to borrowers who locked in at higher rates during 2023–2024.

Fixed Rates: Have dropped by 25–40 basis points since April.
Variable Rates: Still depend on BoC’s policy rate, which remains at 2.75% as of June 2025.

Borrowers who are currently house hunting or facing renewal are in a much more flexible rate environment compared to just a year ago.

For a deep dive into this trend, read:
How Lower Bond Yields Are Reshaping Fixed Mortgage Rates in BC

Why Buyers in Surrey and Abbotsford Should Act Strategically

For many would-be buyers, the question isn’t just “can I afford a mortgage?” but “is now the right time?” A soft landing makes the answer more nuanced.

Here’s what to consider:

Locking a Rate Before Market Tightens

As we approach the next BoC rate announcement on July 30, borrowers could benefit from locking a fixed rate while lenders adjust slowly to market trends.

More Inventory = More Choices

Local listings in Abbotsford and Fraser Valley have increased since spring. Paired with stabilizing prices, this gives buyers stronger negotiating power.

First-Time Buyers: Expanded Options

Thanks to the recent GST exemption and longer amortization options, first-time buyers can now qualify more easily.

Explore details in:
The Ultimate Guide to First-Time Home Buyer Mortgages in BC

How Homeowners Can Take Advantage of the Current Market

While new buyers weigh their entry, homeowners have their own opportunities to consider:

Mortgage Renewal

If your mortgage is up for renewal in 2025, this is a window to secure better terms than in recent years—especially if you’re coming off a fixed rate above 5%.

Mortgage Refinance

Lower fixed rates and rising home values in suburban BC could open the door for debt consolidation or home equity access.

Learn more:
The Complete Guide to Mortgage Refinancing in BC

What to Expect Through the Rest of 2025

While uncertainty remains, here’s what analysts and lenders are expecting in the coming months:

Another rate cut? Possible in Q3 or Q4 if inflation continues to trend down.
Mortgage rates may soften further but not dramatically.
More stable home prices in BC, especially in outer suburbs.
Tighter mortgage stress testing may remain in place despite easing rates.

For updated regional insights:
What Today’s Mortgage Trends Mean for Buyers and Homeowners in Surrey and Abbotsford

How Real Estate Trends Are Supporting a Softer Mortgage Climate

Over the past six months, one of the most noticeable shifts in the BC housing market has been an increase in available inventory, especially in suburban zones. That’s good news for buyers—but sellers and current homeowners can benefit too.

A Balanced Market Is Emerging

Unlike the hyper-competitive markets seen during the pandemic years, Surrey and Abbotsford are moving toward more balanced conditions:

Price growth is steady, not volatile.
Home inspection clauses and negotiation windows are back.
Bidding wars are cooling, giving buyers breathing room.

These trends are supporting the re-entry of buyers who were priced out in 2022–2023, especially those with strong credit and stable incomes.

You may also find this useful:
5 Tips to Get the Best Home Purchase Mortgage Rates in Surrey

Smart Refinancing Plays for Homeowners

If you’ve held a mortgage at a higher rate or are looking to consolidate debt, now may be an opportune time to refinance before rates fall further—because lenders are still cautious and may not offer generous terms if market volatility resumes.

Consider a Refinance If You:

Took a 5-year fixed mortgage in 2021–22 at 4.5%+
Have equity you’d like to access for renovations or investments
Need to consolidate higher-interest debt (credit cards, personal loans)

What About Variable vs Fixed Rates Going Forward?

With the Bank of Canada’s policy rate holding at 2.75% and another cut potentially on the horizon later in 2025, variable-rate mortgages are looking more appealing again. But whether to go variable or fixed depends on:

Your risk tolerance
Your time horizon
Whether you expect to move or break your mortgage early

Learn more in:
Is Variable Rate Mortgage the Right Mortgage Type for You?

Home Equity: A Flexible Tool in 2025

With BC home prices holding steady, homeowners may be able to unlock equity to finance:

Secondary home purchases
Home upgrades
Business expansions

A home equity loan or line of credit (HELOC) offers flexibility, especially in a lower-rate environment. However, make sure your borrowing strategy aligns with long-term affordability.

Helpful Resource:
Home Equity Loans in BC: What They Are, How They Work, and When to Use Them

FAQs: Mortgage Planning in a 2.75% Rate Environment

Will the Bank of Canada cut rates again in 2025?

Many economists expect one more rate cut, possibly in Q3 or Q4, depending on inflation and job market softness. However, cuts may be limited as the Bank wants to avoid reigniting inflation.

Is now a good time to renew my mortgage early?

Yes, especially if you’re currently locked in at a rate above 5%. Lenders may offer early renewal incentives or blended rates that are lower than your current contract.

Learn more:
The Complete Guide to Mortgage Renewal in Abbotsford, Surrey & Nearby Areas

Are first-time buyers getting more support in 2025?

Yes. Recent federal housing policy changes—including GST exemptions and extended amortization—are improving access, especially for new builds.

Should I wait to buy in hopes rates will fall further?

Waiting may come with trade-offs. While rates could decline modestly, competition and prices may increase if too many buyers enter at once. Timing the market is risky—consider buying when it fits your long-term financial goals.

Final Takeaway: Strategy Over Timing

Whether you’re a homeowner or buyer in Surrey, Abbotsford, or nearby areas, 2025 presents an opportunity to make strategic mortgage decisions, not rushed ones. This soft-landing environment won’t last forever, and the best path forward involves planning, not speculation.

Need help finding the right mortgage strategy for your situation?
Start here: satbirbhullar.ca or Contact Us

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