As the new year begins, I’d like to wish you and your loved ones a happy, healthy year ahead — whether you’re spending it at home in Canada or enjoying time in the sun.
With 2025 now behind us, it’s a good moment to reflect on the trends that shaped interest rates and housing markets, and what they may mean in 2026 for Canadians who own — or are considering — vacation properties.
2025 recap: easing rates, steadier planning
If 2024 marked a turning point for interest rates, 2025 was about gradual relief and renewed confidence. The Bank of Canada lowered its policy rate four times during the year, bringing it down to 2.25% by late October. Prime rates followed, offering welcome relief for borrowers and improving cash flow for many households.
Inflation remained close to the Bank of Canada’s 2% target, helping stabilize everyday expenses and making long-term planning easier — particularly for retirees and pre-retirees. While economic growth was uneven, Canada avoided a sharp downturn, supported by steady employment and consumer spending.
For many snowbirds, this environment made it easier to plan around mortgage renewals, refinancing, and accessing home equity — often important steps when purchasing or maintaining a vacation property.
Looking ahead to 2026: fewer surprises, more stability
As 2026 gets underway, most economists expect the Bank of Canada to remain on hold for much of the year. Mortgage rates may drift modestly lower, but large declines are unlikely. For snowbirds, this points to a more predictable rate environment and fewer surprises when coordinating Canadian and cross-border financial commitments.
Housing activity in Canada is expected to remain steady. Tight supply should limit broad price declines, helping homeowners preserve equity — an important consideration for those funding lifestyle purchases or planning long-term travel.
For those thinking about buying a vacation property, 2026 may be a year of thoughtful decision-making rather than rushed action. Exchange rates, financing structure, insurance costs, and mortgage timing will all play a role. Planning early can help protect flexibility and avoid unnecessary stress.
Planning for your snowbird lifestyle
Whether you already own a vacation property or are exploring the idea, reviewing your Canadian mortgage strategy remains an important part of the picture. Renewals, refinancing options, and equity planning can all influence how comfortably your snowbird lifestyle fits into your broader financial goals.
If you’d like to review your situation or talk through what 2026 could look like for you, I’m always happy to help. A short conversation early in the year can often make a big difference later on.
Here’s to a smooth, sunny, and well-planned year ahead.