From Challenge to Change: My First 12 Months in the Mortgage Industry

When I became a Mortgage Broker just over a year ago, everyone told me the same thing: “You picked one of the hardest times to get into this industry.” They weren’t wrong. The second half of 2024 was one of the most challenging periods borrowers have faced in years — but Q1 of 2025 started to bring cautious optimism. Then...Q2...here we go again!

Here’s my look back at the last 12 months: the challenges we endured, the progress we’ve made, and what it means for borrowers moving forward.

The Lows: What Borrowers Faced in Late 2024

High Rates Held On

Many hoped the Bank of Canada would begin cutting rates by late 2024. Instead, rates stayed higher for longer, keeping affordability strained.
Mortgage renewals during this time brought significant “payment shock,” with households seeing increases of 15–25% or more compared to their old payments.

Affordability at a Standstill

Even with higher rates, home prices in many BC markets stayed firm.
The stress test (qualifying at ~2% above contract rates) continued to limit how much borrowers could qualify for, leaving many first-time buyers on the sidelines.

Lender Caution Continued

Lenders tightened their guidelines, particularly for self-employed borrowers or those with higher debts.
Many deals required more documentation, patience, and creativity to get across the finish line.

Early 2025: A Turning Point (?)

Then, finally, the tide started to turn.

In Q1 2025, the Bank of Canada began cutting rates, and the 5-year Government of Canada bond yield dropped — giving borrowers a much-needed break. For a while, fixed mortgage rates followed lower, and I’ll never forget the look on a client’s face when we re-ran their numbers that spring. Their payments came in lower than expected. For the first time in a long while, the conversation was one of relief, not stress.

BUT by Q2 2025, bond yields began to creep higher again amid economic uncertainty in both Canada and the U.S. By July 2025, yields spiked back up to around 3.10%, before easing slightly to the current ~2.98% (marketwatch.com).

This back-and-forth reminded us all that mortgage rates move with the market. While confidence did start to return — and many buyers who had been sitting on the sidelines began asking, “Is now the time to get back in?” — it was also clear that timing matters, and flexibility remains key.

Lessons from the Last 12 Months

Don’t wait until the last minute.

Borrowers who reviewed their renewal strategy 6–12 months in advance avoided panic and secured better terms.

Flexibility is key.

Exploring multiple lenders, terms, and product types made a huge difference in affordability.

Education empowers decisions.

Understanding the “why” behind lender rules and rate movements helped borrowers feel more in control.

Looking Ahead: The Rest of 2025 - The first half of 2025 gave us both hope and a reality check.

Q1/25

Rate cuts and a drop in the 5-year Government of Canada bond yield brought genuine relief for borrowers — some even saw their payments come in lower than expected. For a moment, the conversations shifted from stress to relief.

Q2/25

Uncertainty returned. Bond yields crept back up, spiking around 3.1% in July before settling closer to 2.98%. It was a reminder that mortgage rates don’t move in a straight line — they rise and fall with markets, inflation, and global events.

So, what does this mean for the rest of 2025?
We’re not out of the woods yet, but there are opportunities for borrowers who prepare. Whether it’s renewing early, exploring flexible products, or simply understanding how bond yields affect mortgage rates, proactive planning makes all the difference.

For me, this first year as a broker has been about resilience, problem-solving, and walking alongside clients through one of the most unpredictable markets in years. And while there have been challenges, there have also been wins — the moments where we found a solution, lowered stress, and gave someone confidence in their next step.

If you’re renewing, buying, or just planning ahead, let’s talk now — so that when the next shift comes, you’re ready.