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Welcome to the Better Mortgage Select monthly newsletter – May 2026 edition.

 

Brought to you by Daniel Patton, Michael Zanzini, Lorenzo Podda, and our President, Dave Butler.

As we head deeper into 2026, not much has materially changed since our last newsletter, with respect to the overall interest rate landscape — and in many ways, that consistency is telling us exactly where the Canadian economy currently sits.


Headline inflation, as expected, has moved up to 2.8%, sitting a little uncomfortably above the Bank of Canada’s 2% target. However, one of the more encouraging developments has been the continued improvement in core inflation — which had previously remained stubbornly above 3% during much of 2024 and 2025.


Today, most core inflation measures are now sitting in the low-2% range.


That’s important because core inflation is one of the Bank of Canada’s preferred gauges when assessing whether inflation pressures are becoming deeply embedded in the economy. Seeing it move back toward target is certainly a positive sign for Canadians hoping for future interest rate relief down the road.


At the same time, unemployment remains elevated at 6.9%, while GDP growth continues to look sluggish.


In other words:

  • Inflation remains too high for the Bank of Canada to comfortably cut rates
  • Economic growth and employment remain too weak for the Bank of Canada to comfortably raise them

And that’s exactly why we continue to sit in what is effectively a “status quo” interest rate environment.


As it stands today, both the scheduled June and July Bank of Canada meetings are trending heavily toward rate holds.


The variable rate market remains relatively stable.


The fixed rate market, however, is where we continue to see the pressure.


Bond yields remain elevated, and while the banks have been trying to remain competitive during what is traditionally the busiest mortgage season of the year, there is certainly pressure for fixed rates to move higher.


And yet, despite slower purchase activity across Canada, something very interesting is happening:

Refinance activity is rising sharply.

Why?


Because Canadians are beginning to accept a new reality:


The era of 1.99% and 2.49% mortgages is gone — at least for the foreseeable future.


And that realization is causing many families to finally sit down and reassess their overall financial picture.


Remember — we are now almost halfway through 2026.


Most homeowners who were still benefiting from ultra-low pandemic-era mortgage rates have now renewed, or are about to renew, into today’s interest rate environment — which realistically means rates around 4% or higher.


And that changes everything.


Debt that once felt manageable at ultra-low mortgage rates can suddenly become much heavier when:

  • Mortgage payments increase
  • Property taxes rise
  • Insurance costs climb
  • Everyday living expenses remain elevated
  • And unsecured debt quietly accumulates in the background

What starts as “just carrying a balance for a while” can slowly become a major monthly drain.


A family running even a modest monthly deficit on credit cards or unsecured debt can quickly find themselves carrying tens of thousands of dollars in balances within just a few years — and at today’s interest rates, those interest payments alone can become crippling.


That’s why refinancing is becoming one of the biggest trends we are seeing in 2026.


Not because Canadians are being reckless.


But because Canadians are finally adapting to the new financial reality.

   

The Math is Simple

If you are paying 12%, 18%, or 22% interest on unsecured debt while sitting on equity in your home, it simply does not make financial sense to continue carrying that debt at those rates.


Today, many homeowners can refinance or restructure debt into:

  • Mortgage financing in the 4% range
  • Home Equity Lines of Credit around 4.95%

That can dramatically improve monthly cash flow and help families regain control over their finances.


In many cases, we are helping clients:

  • Eliminate large monthly credit card obligations
  • Lower overall monthly payments substantially
  • Reorganize debt into more manageable structures
  • Improve cash flow immediately
  • And reduce financial stress heading into the second half of 2026

We are even seeing situations where clients are carrying vehicle payments of $600–$800/month with relatively small remaining balances — and simply restructuring that debt creates immediate monthly breathing room.


And importantly:


Refinancing should not be viewed as a negative.


In many cases, it is simply smart financial management.


In fact, what we are seeing today reminds us very much of the early and mid-2000s — when many Canadians who had survived the difficult high-rate environment of the late 80s and early 90s began using refinancing strategically to stabilize and improve their long-term financial position.


History doesn’t repeat perfectly — but it often rhymes.


And right now, the Canadians who are proactively reassessing their finances are putting themselves in far stronger positions for the years ahead.


That’s why for the month of June, BM Select is opening up complimentary 30-minute Financial Review Zoom Meetings for our clients.


During these meetings, we’ll sit down together and review:

  • Current mortgage structure
  • Monthly cash flow
  • Existing debts and obligations
  • Refinance opportunities
  • Payment restructuring options
  • And areas where we may be able to improve your overall financial position immediately

Sometimes even small adjustments can create meaningful monthly savings.

If you would like to book a review and simply explore your options, reply to this email with the subject:“Financial Review”


And one of our mortgage experts will personally reach out to schedule your consultation.

     

Right now, through our BM Select Investor Edge program, we have more than 150 active BUILD-UP approvals in the construction phase.


That means over a hundred real estate investors — just like you — are currently in the process of adding legal rental units to properties they already own.


When construction is complete, these investors will:

  • Collect significantly more monthly rental income
  • Increase the value of their properties substantially
  • Improve long-term cash flow
  • And in many cases, complete the project with little to no out-of-pocket capital

Yes — for many BUILD-UP clients, the construction costs ultimately end up fully financed.


That’s what makes this program such a game changer.


If you are a real estate investor and haven’t yet explored the BM Select BUILD-UP program, you are potentially overlooking one of the most powerful financing opportunities available in today’s market.


The old style of real estate investing — buy, hold, wait, and hope appreciation does all the work — has changed.


Today’s successful investors are creating value.


They are adding units.
They are increasing rents.
They are improving cash flow.
They are optimizing underperforming properties.

And they are using financing strategically to do it.


With most residential properties now effectively pre-zoned for up to four units, adding rental units has never been more accessible.


And BUILD-UP was specifically designed to help investors take advantage of that opportunity.


This is not traditional construction financing.


BUILD-UP finances based on the FUTURE value of the property after the units are added — something that traditional lenders have historically struggled to offer effectively.


That difference changes everything.


The math speaks for itself.

Want to see how BUILD-UP works in real-life situations? Check out our digital booklet: Click Here

OR, watch the video below to learn more:

   

If you own investment properties — or are even considering becoming a real estate investor — you owe it to yourself to understand how this program works.


Because while many investors are sitting still waiting for the market to improve, others are actively building equity, increasing cash flow, and positioning themselves for the next real estate cycle.


When you’re ready:


Email us at info@bmselect.ca and let’s start optimizing your portfolio today.

     

Our mortgage experts were a busy group this month, let’s see what they were up to…


Our Vice President, Daniel Patton, and Director of Operations, Lorenzo Podda, recently stopped by the Rock Star Real Estate office to connect with agents and talk about how affordability is making a comeback in today’s market. The guys also talked about our BM Select Build-Up program and multi-family conversion opportunities — strategies that continue to shape the future of real estate.  Thanks to Tom, Nick and Nigel for having us in!

   
     

Sr. Mortgage Agent, Michael Zanzini kept things interesting on the Our Neighborhood Realty / Royal LePage monthly sales meeting on Zoom.  He went over the current mortgage interest rate landscape and shared some great feedback from a client that they all had recently closed a tough deal for.

   
   
     

Daniel was back at it again, hosting an in-person First-Time Homebuyer event with Michael St. Jean Realty. The event brought together aspiring homeowners for an evening of great conversation, food, and valuable insights into today’s housing market.


Thanks to Michael, Ericka, Ravi and Liam for co hosting the event!

   
     

Michael was then off to host an in-person event with the agents at Our Neighborhood Realty / Royal LePage, using Cinco De Mayo as a great excuse to eat some tacos and chat mortgages and real estate.

     

Daniel was then catching up with old friend and realtor Sofia Poshni, from RE/MAX Escarpment. With over 10 years of experience in real estate, Sofia and Dan enjoyed some great conversation over coffee at a cozy café in Oakville while catching up on life, the market, and everything happening in real estate today.

     

Finally, Daniel met up with Herman Chan, of Crimson Financial, and Carol Duong, of Baker Real Estate, at a recent investor event. They spent time diving into commercial and multi-unit financing strategies.  Herman, as always, was an incredible host—bringing the right people together and creating opportunities for meaningful connections. Truly grateful for the opportunity to work with likeminded professionals.

     

Just a friendly reminder to come visit us on our socials, where we put out a ton of videos with tips and information to help you navigate the wild world of mortgages! Check out the links below and give us a follow!

   
   
   
     
   

As always, if you have any questions or want to do some mortgage planning, feel free to reach out to us at: info@bmselect.ca