If you’re in the market for a mortgage this spring, you’ve probably noticed fixed rates are continuing to trend lower.
That’s thanks in large part to falling bond yields, which drive fixed-rate pricing, and a fresh wave of spring competition among lenders.
In the past week alone, some banks and monolines have cut 3- and 5-year fixed mortgage rates by 10 to 20 basis points.
“The spring market starts now,” mortgage analyst Ron Butler recently told Canadian Mortgage Trends, pointing to what’s typically the busiest—and most competitive—season in the mortgage cycle. With many high-ratio fixed rates now dipping below 4% for the first time in months, Butler says the pricing war is well underway.
According to rate expert Ryan Sims, big banks are especially keen to compete right now after a sluggish start to the year for mortgage originations. That’s translating into sharper fixed-rate offers.
But it’s a different story for variable rates. While the Bank of Canada’s overnight rate dropped another 25 basis points earlier this month, lenders are quietly reducing their variable-rate discounts off prime—effectively making new variable-rate mortgages more expensive.
It’s a trend that hasn’t gone unnoticed by brokers and borrowers alike.
As more borrowers look to variable products in anticipation of further BoC cuts—as reflected in the latest big bank rate forecasts—lenders are adjusting pricing to limit their exposure.
Trimming VRM discounts helps rebalance their loan mix and offset the rising cost of hedging, explains Sims.
“When the proportion of variable-rate mortgages grows too large, lenders need to protect themselves by hedging—and that protection comes at a cost,” Sims said. “Hedging is like insurance. The price goes up when everyone wants it, and in a falling rate environment, that demand spikes across the board.”
Newton acquires 50% stake in Fastkey
Newton Connectivity Systems has acquired a 50% ownership stake in Fastkey Technology Ltd., fintech company known for its secure CRA document retrieval service and growing suite of financial screening tools.
The partnership brings Newton’s Velocity platform closer to full integration with Fastkey’s income verification service, which pulls key documents—such as Notices of Assessment and tax slips—directly from the Canada Revenue Agency. The solution has been gaining traction among brokers looking to streamline approvals and reduce income fraud risk.
“Investing in Fastkey brings Newton-Velocity closer to our desired outcome for
sustainable, long term access to critical employment and income confirmation
from CRA for both our Mortgage Broker and Lender customers,” said Geoff Willis, CEO of Newton.
Fastkey’s CRA Service helps brokers and lenders verify income directly through official CRA channels—reducing the risk of forged documents and income-related fraud. The company also offers tools for biometric ID verification, AML and PEP screening, criminal record checks, title searches, and more.
“This partnership will help us accelerate the development of our solutions and ensure that mortgage brokers across Canada have the most powerful financial screening tools at their fingertips,” said Shane Nercessian, CEO of Fastkey.
Servus CU grows to $29.4B in assets following connectFirst merger
Alberta-based Servus Credit Union—now operating under the combined banner with connectFirst—reported strong Q1 financials in its first full quarter as a combined entity.
As of Q1:
- Assets under management rose to $38.4 billion, up $800 million from the prior quarter
- Normalized income before taxes and patronage came in at $44 million, after adjusting for $23.9 million in one-time merger-related items
- Total loans reached $24.7 billion
- Provision for credit losses was $22.1 million
The credit union says its scale and stability post-merger position it to better support members during economic uncertainty.
“Our focus now is on integrating our operations so we can better serve our members and communities,” said CEO Ian Burns.
Alberta’s economy is showing signs of growth thanks to oil production and population gains, though unemployment and cost-of-living concerns remain.
Survey: 82% of Canadians face surprise costs in homebuying journey
A new Angus Reid study commissioned by online real estate brokerage Zown finds that the homebuying process continues to catch Canadians off guard—and affordability pressures are prompting many to shift their plans.
Key findings:
- 82% of Canadians encountered unexpected costs when exploring homeownership, including realtor fees, closing costs, and property taxes.
- 26% of Canadians plan to buy a home in the next two years—but 80% of them have reconsidered their desired location due to affordability.
- 57% of Canadians trying to save for a down payment say high living costs are the biggest barrier—not interest rates or housing prices.
- 36% are unaware of available financial resources like down payment assistance, and 25% of future buyers lack confidence in navigating the process.
The survey also shows strong demand for education and support, especially from younger buyers. Gen Z is the most likely to see homeownership as a lifetime goal (84%), yet the least familiar with the tools available to help them get there.
Mortgage arrears continue to rise
Canada’s national mortgage arrears rate rose to 0.22% in December, with 10,959 mortgages three or more months overdue, according to the Canadian Bankers Association (CBA).
That’s up slightly from 0.21% in November and above the pandemic low of 0.14% in 2022, though the rate remains low by historical standards.
Saskatchewan continues to report the highest arrears rate at 0.60% (up from 0.59% in November), followed by Manitoba at 0.32% (unchanged) and Alberta at 0.30% (up from 0.29%). The lowest rates were recorded in Quebec and British Columbia, both at 0.18%. Ontario’s arrears rate edged up to 0.19%, while the Atlantic region stood at 0.28%.
BCFSA disciplines 23 individuals tied to unregistered mortgage broker activity
The BC Financial Services Authority has issued five new consent orders following a multi-year investigation into unregistered mortgage broker Jay Kanth Chaudhary.
The orders are part of a broader crackdown involving 23 individuals linked to Chaudhary’s scheme to facilitate non-compliant mortgage activity in B.C.
Recent disciplinary actions include licence cancellations and penalties of up to $75,000 for several real estate licensees and one mortgage broker. Chaudhary was previously issued an urgent cease-and-desist order in 2019.
BCFSA has since unredacted related regulatory actions and issued a consumer fact sheet highlighting the importance of working with registered mortgage professionals.
Mortgage snippets
- Consumer confidence dips to 2025 low: Canadian consumer confidence dipped to a 2025 low last week, with the Bloomberg Nanos Confidence Index falling to 47.43, down from 48.38 last week and below the 2025 average of 49.21.
The Expectations Index dropped to 41.01, reflecting growing pessimism about the economy and real estate. The Pocketbook Index, which gauges personal finances and job security, slipped to 53.84 from 55.03.
Quebec posted the highest confidence at 48.66, while Ontario ranked lowest at 45.80. Renters reported stronger confidence than homeowners, whose score fell sharply to 47.08 from 51.14 the previous week.
Just 10.05% of Canadians expect the economy to improve, and sentiment toward real estate fell to 36.21, its lowest level in over a year.
- Most homeowners confident in managing mortgages—CIBC poll: Despite economic uncertainty, a new CIBC poll finds the majority of Canadian mortgage holders feel confident in their ability to manage payments and household budgets. Among variable-rate borrowers, 64% report little to no impact on their standard of living, as do 59% of those expecting higher renewal rates.
Top concerns include inflation (94%), economic conditions (89%), and interest rates (85%). To stay on track, many are cutting discretionary spending (57%), shopping for better rates (42%), or making lump sum payments (19%). Most upcoming renewers plan to lock in fixed rates (64%).
- Doormat rebrands to Ownright, raises $4.5M: Ontario-based real estate law firm Doormat has rebranded as Ownright and closed a $4.5-million seed round led by Alate and Relay Ventures, bringing its total funding to $6.5 million. The company says the rebrand reflects its mission to deliver a smarter, more transparent legal experience for homebuyers and sellers.
Ownright has facilitated over $750 million in transactions and offers services like property closings, mortgage refinancing, and status certificate reviews through its digital-first platform. It aims to surpass $1 billion in transaction volume by the end of 2025.
Next Steps: Mortgage industry career moves
“Next Steps” is a feature in our Mortgage Digests that highlights notable job changes and career advancements within the mortgage industry. If you have a job update to share, we welcome your submissions to keep the community in the loop.
Leadership updates at CMI: Todd Poberznick Promoted, Joe Flor Joins as VP, Mortgage Sales
CMI Financial Group has announced two key leadership changes as the company continues to expand its presence in the private mortgage market.
Todd Poberznick has been promoted to Senior Vice President, National Sales and Strategic Relationships. In this new role, he will focus on expanding CMI’s reach through new channels and strengthening strategic relationships.
Since joining CMI, Poberznick has played a pivotal role in driving growth, expanding distribution, and forging relationships with brokerages and banks. During his tenure, mortgage originations increased by 300% between 2020 and 2024. With over 40 years of experience in financial management, mortgage product development, broker relations, and sales, he remains a key figure in the industry.
Joe Flor has joined CMI as Vice President, Mortgage Sales, overseeing the company’s Sales function. In this role, he will lead the Sales team and manage day-to-day operations to strengthen broker partnerships and drive continued growth.
Flor brings more than 20 years of experience in financial services, having held leadership positions at Scotiabank, Wells Fargo Financial, Glasslake Funding, and Equitable Bank. He has an extensive background in national sales program development, relationship management, and strategic growth.
CMI says these leadership changes reflect a commitment to strengthening the company’s national presence and enhancing its partnerships within the industry.
Kelly Neuber joins Highclere Capital as Chief Marketing Officer
Industry veteran Kelly Neuber has joined Highclere Capital as Chief Marketing Officer, bringing over two decades of mortgage industry marketing experience to the firm.
Her resume includes senior marketing roles at Invis – Mortgage Intelligence, Mortgage Architects, and Mortgage Intelligence.
Highclere, which launched in 2023, has been steadily expanding its team as it looks to scale its broker-focused private lending platform.
Neuber joins as Highclere prepares to roll out its broker-only lending platform, which will be powered by capital markets funding and a tech-forward adjudication model. As co-founder Paul Grewal recently told Canadian Mortgage Trends, “Our goal is to support mortgage brokers to win and succeed”—a message Neuber will now help amplify.
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Last modified: March 25, 2025