Housing prices across Canada remain prohibitively high for many would-be homebuyers, and one expert says that’s partly due to Canadian seniors holding on to their homes longer than they did in the past, exacerbating a nationwide supply shortage.

“I think a lot of seniors today don’t have a better option,” Rishard Rameez, CEO and co-founder of real estate platform Zown, told BNN Bloomberg in an interview on Tuesday.

“There should be some sort of a need to move into a new home, but seniors don’t want to move into a condo where they have to use the elevators and all that. They still want to have a nice backyard where they can host family… but we don’t have those kinds of homes available for seniors.”

A 2023 Canada Mortgage and Housing Corp. report found that the proportion of Canadians older than 75 who are cashing out of the housing market fell steadily between 1991 and 2021.

“A lot of seniors actually decide to stay and age in the same place. Today, about five per cent of seniors sell their homes, compared to 13 per cent for the rest of the general population,” Rameez said.

There are also few policies in place that incentivize seniors to sell their homes in search of a better option, he explained, adding that this causes a reduction in turnover and puts pressure on real estate markets across the country.

And while inventories remain strained, younger Canadians face a “double squeeze” when the cost of renting is factored in, he argued.

“On average, young Canadians pay almost 50 per cent of their net income in rent… so it’s almost impossible for these younger Canadians to save,” Rameez said.

“Without turnover, there’s less options for people to buy from, hence these investors are able to jack up the rental prices and now Canadians are stuck paying these (high) rental prices.”

He noted that the average age of a first-time home buyer in Canada is now over 35 years of age.

“It used to be twenties, it used to be early thirties, now it’s beyond 35. Imagine someone having to pay rent for that many years before becoming a homeowner,” said Rameez.

He said Canada’s policymakers need to be looking at alternative ways to assist young Canadians in purchasing their first property, as homeownership remains a goal for many people in the country, despite the challenges it comes with.

“That’s the Canadian dream; to own your home and build a family,” Rameez said. “These aren’t just homes, these are places where people will build memories and kids will take their first steps.”

With files from The Canadian Press

Written by Jordan Fleguel

Interview of Rishard Rameez, CEO of Zown on BNN Bloomberg

Borrowers are caught in a mortgage rate market that changes by the week, with little sign of stability ahead.

With every passing week, the Bank of Canada faces conflicting economic signals, leaving Canadians guessing about its next move and triggering rapid changes in mortgage rates.

After several weeks with the lowest 5-year fixed rates holding above 4%, several lenders are now offering options in the high-3% range, generally for high-ratio borrowers.

“There was a two-month period where there were lots of rates available in the three’s … and then suddenly, everything headed for the fours over about a two-week period,” says Ron Butler of Butler Mortgage. “Then bond yields took a roughly 25 basis-point reduction, and now we’re back in this very aggressive state.”

Butler notes that while not every lender has followed suit, a number are again pricing select terms below 4% in the past few days, a trend that could just as easily swing back.

“Every single news item to do with interest rates, both here and in the United States, can trigger a change in bond yields and rates,” Butler says. “What we urge people to understand is that it is that volatile; rates can all go back into the fours very soon.”

Conflicting economic signals

The current volatility isn’t driven solely by the trade war and uncertainty over long-term policy, though both play a role.

According to rate expert Ryan Sims of TMG, the market is still trying to figure out how past changes to trade policies and leadership regimes are affecting both Canada and the United States.

“We’ve got two opposing forces right now and the bond market is reacting to every single report,” he says. “You’ve got inflation in Canada slowly creeping up bit by bit, but then you’ve also got the horrible jobs numbers we saw last week.”

High inflation typically pushes the Bank of Canada to raise rates, while weak employment and a slowing economy point to cuts. What’s unusual now is that both forces are appearing at once, Sims says.

Further complicating the matter is the American economic picture, which directly influences Canada’s 5-year bond yield, and with it, fixed mortgages. Though there are some cracks starting to form, the U.S. economy appears to be outpacing expectations.

“Whether you agree with the current administration or not, the data is coming in strong — employment is healthy, GDP is growing at a good clip, inflation is fairly malignant right now — so I don’t think you’ll get the rate cut from the U.S. Fed that everyone was banking on this year,” Sims explains. “It’s a lot harder for the Bank of Canada to cut when the U.S. Fed isn’t cutting.”

Even as the Bank of Canada shows little inclination to cut its policy rate, which drives the prime rate and variable borrowing costs, Canada’s big banks have been lowering mortgage rates after earlier hikes to win over renewers in a slow market.

“They’re being very competitive on rates, and it makes sense, because they’re going to gain some market share, they’ve now got that customer they can cross-solicit to open a bank account, an investment account, a credit card, what have you,” Sims says. “As we approach [their fiscal year-end on] October 31, you’re going to see a lot of banks wanting to pick up market share and pick up really good risk profiles, because it helps their averages out.”

Sims therefore advises clients to use this competitiveness to their advantage. “I’m telling clients to call their bank and say, ‘I’m working with a broker, I’m actively shopping, give me the best possible deal you can; you get one opportunity,’” he says.

The best options for borrowers right now

With the market shifting every few weeks and little clarity on its longer-term direction, experts advise borrowers to base decisions on their own risk profiles.

“I prefer the variable, and the only reason is because I have a free option to lock in at any point in time should I want to do that,” Sims says. “If I see that inflation is not letting down and I need to lock in, I can do that, but if I lock in now and rates plummet, I’m facing high [prepayment] penalties.”

The variable option, Sims adds, could offer more flexibility if Canadians face widespread job losses or economic stress in the coming years, challenges that may be tougher under a fixed mortgage.

However, Robert McLister, a mortgage strategist at MortgageLogic.news, cautions that only those prepared to monitor the markets closely and act quickly should consider a variable rate in today’s environment.

“Unless you’re bulletproof financially and need shorter-term penalty flexibility, go easy on variables,” he advises. “If you model out their performance using today’s rates and forward rate projections, their performance edge is limited for most people. Add in the real dangers of inflation and Ottawa’s fiscal mismanagement, and their appeal shrinks further.”

Instead, McLister recommends a fixed-rate mortgage of three or five years for most, or a hybrid option for those with a little bit more appetite for risk.

“Get a sufficiently long rate hold if you’re home shopping or refinancing,” he adds. “The point is: don’t bet the ranch on much more [interest rate] relief from here.”

Written by Jared Lindzon

for Canadian Mortgage Trends

From tax implications to AML compliance, here’s what borrowers need to know before turning digital wealth into a mortgage.

Crypto mortgages are becoming a hot topic in Canada, but there’s still a lot of confusion around how they work. For Canadians with significant holdings in Bitcoin, Ethereum, or other digital assets, the idea of using that wealth toward homeownership is appealing. However, turning crypto into a viable down payment, or leveraging it as collateral, isn’t as simple as it sounds. Between tax implications, lender skepticism, and regulatory requirements, the path from digital wallet to mortgage approval requires careful planning and documentation.

Case studies: when crypto becomes a mortgage down payment

1) Recently, Brian Hogben of Mission 35 Mortgages worked with a client who had already converted cryptocurrency into Canadian dollars. The funds had been sitting in a bank account for over 90 days, typically enough to meet lender documentation standards.

The challenge was finding a lender, and more importantly, an underwriter, who understood crypto. Several major banks refused to proceed, despite the funds being seasoned and in fiat. Progress finally came through Bank of Montreal, which Brian explained has a specialized underwriting team familiar with crypto-related transactions.

After tracing the fund origins and confirming they were compliant with anti-money laundering (AML) standards, BMO approved the mortgage. It was a breakthrough, but it also highlighted how new and misunderstood crypto remains in the mortgage space.

2) A few years ago we ran into the exact same thing with clients purchasing a home in the Greater Toronto Area. They found us only one week before their closing date as their bank had withdrawn their mortgage approval. The reason was because the down payment was largely coming from digital wallets containing their crypto funds.

The only available solution was a private first mortgage, which we placed with Vault Mortgages. Everything went well, in spite of the tight timeline, and the buyers avoided losing their $250,000 deposit.

Interestingly, when they wanted to refinance within six months, they ran into the exact same problem. The banks still wanted to verify their down payment for the original purchase.

What is a crypto mortgage and how does it work?

Crypto mortgages typically fall into one of two categories:

• Crypto-funded mortgage: You sell your crypto, convert it to Canadian dollars, and use those funds as your down payment. This is more common but comes with tax consequences.
• Crypto-backed mortgage: You pledge your crypto as collateral without selling it. This may help you avoid triggering capital gains tax, but requires a lender capable of assessing and managing that risk.

How crypto-collateralized loans work

If you want to access liquidity without selling your crypto, a crypto-backed loan is another option. Here’s how it works:

1. Deposit crypto as collateral

You transfer your crypto to a platform, where it is held in a secure wallet or smart contract. Platforms such as YouHodler and Ledn support this model.

2. Loan-to-value (LTV) ratio

You can typically borrow between 30% and 70% of your crypto’s value. For example, pledging $10,000 worth of Bitcoin may get you a $5,000 loan.

3. Disbursement

Loans are issued in fiat (e.g., CAD, USD) or stablecoins. Most do not require a credit check and can be approved quickly.

4. Repayment and interest

Terms vary. Some platforms offer flexible repayment options; others require fixed schedules. Once the loan and interest are repaid, your crypto is returned.

5. Liquidation risk

If the value of your crypto drops and your LTV exceeds a certain threshold, you may be required to add collateral. Otherwise, your crypto may be liquidated.

6. No taxable event

Since you are borrowing, not selling, there is no capital gains tax event. This can be beneficial from a tax-planning perspective.

A simpler, safer alternative: using crypto ETFs for mortgage planning

For a more straightforward path, consider using crypto ETFs instead of direct crypto holdings. ETFs allow you to gain exposure to digital assets without managing wallets, keys, or exchange accounts.

Held through mainstream brokerages, including in TFSAs and RRSPs, crypto ETFs are easier for lenders to understand and verify, avoiding the friction that often comes with direct crypto assets.

Leading crypto ETFs in Canada

These are some of the top crypto ETFs available to Canadian investors:

• BTCC (Purpose Bitcoin ETF): The first Canadian Bitcoin ETF, with CAD and USD options and a carbon-neutral version
• BTCQ (3iQ CoinShares Bitcoin ETF): Physically-backed BTC, held in cold storage
• FBTC (Fidelity Advantage Bitcoin ETF): Designed for registered accounts
• ETHH and ETHX (Purpose and CI Galaxy Ethereum ETFs): Offer direct ETH exposure, with or without staking
• IBIT (iShares Bitcoin ETF): Managed by BlackRock, a major global asset manager

Several ETFs now include additional exposure to AI stocks or newer crypto assets like Solana, expanding diversification options within this space.

Naturally, our readers should NOT assume this to be investment advice. Ask your licensed financial adviser for their opinion before proceeding please.

Can I use crypto as a down payment?

Yes, but there are strict conditions:

• You must convert the crypto to Canadian dollars
• Maintain a documented paper trail of the sale and deposit
• Be prepared to explain the origin of your funds for AML compliance

Many lenders will still be hesitant. Working with a mortgage professional familiar with these requirements and a lender that understands crypto is essential.

Is it legal and safe in Canada?

Yes, but regulatory guidance is evolving. Lenders must comply with OSFI and FINTRAC standards, which include thorough AML and source-of-funds verification.

OSFI is expected to implement new digital asset rules in 2025, which may influence how Canadian financial institutions handle crypto-collateralized products.

Key risks to consider

• Price volatility: A drop in crypto value can lead to margin calls or liquidation
• Lender restrictions: Many banks still reject crypto-related funds
• Platform risk: Some crypto lenders have gone bankrupt
• No deposit insurance: Crypto held as collateral is not insured by CDIC
• Compliance complexity: Documentation, tax reporting, and regulatory scrutiny can be significant

Who offers crypto-backed loans?

The following platforms offer crypto-backed lending services:

• Ledn (Canada-based)
• APX Lending (Canada-focused)
• Binance
• Coinbase
• Crypto.com
• YouHodler
• SALT Lending
• Aave and Compound (DeFi protocols)

For Canadians, I am told Ledn and APX Lending provide the most relevant regulatory alignment.

How does CRA treat crypto in mortgage scenarios?

Under CRA guidelines, cryptocurrency is treated as a commodity. Selling it to fund a down payment is a taxable event, and any capital gains must be reported.

However, borrowing against your crypto is not a disposition and does not trigger capital gains taxes, at least under current rules. Regardless, thorough documentation is critical.

Our advice

Crypto-backed mortgages and crypto-collateralized loans offer new possibilities, but they’re not ideal for everyone. If you’re a crypto holder considering homeownership in Canada:

• Convert your crypto to Canadian dollars early, and let it season for at least 90 days
• Alternatively, accumulate your crypto wealth in Exchange Traded Funds
• Document everything: sales, transfers, deposits, and sources of funds
• Work with professionals who understand both traditional lending and crypto
• Be ready to meet rigorous compliance and verification requirements

Canada’s mortgage landscape is still catching up to the digital asset world. Planning ahead is key to avoiding delays or declined applications.

Written by Ross Taylor

Mortgage Strategies