Brexit and Canadian Mortgage Rates: What's next?

Date Posted
19 July 2016
United Kingdom's vote to leave the European Union (dubbed 'Brexit') has shocked the world. Frankly, the panic that it has caused has been spreading like wildfire. From David Cameron's sudden resignation, Nigel Farage's condemnation of the EU to the real possibility of EU break-ups, Europe's economy is facing uncertain times. The UK currency, the pound, is losing value. Many are seriously alarmed that the global economy might go through another crisis. Nonetheless, how definite is the threat? And, most importantly, how will Canadian industries, like the mortgage industry, react?

Breakup of the European Union?

The Brexit vote took many by surprise, leaving investors to speculate the very real threats of EU break-ups. The public has been long alarmed by this possibility since the economical crisis in 2008, although EU's leaders have continuously calmed and suppressed the matter through debt pardoning. However, with United Kingdom being the first to publicly declare that it will leave the union, many other countries with weaker economies such as Greece and Spain could soon follow. The EU leaders have soon gathered and pledged to protect the union, but many question (and rightfully so) their commitments now. With Brexit and the possibility of EU break-ups, capital flights from Europe to Canada might occur. Capital inflow would also reach Canadian mortgage market and could increase mortgage demand and price. A good indicator of a safety-to-flight behavior is to check the rate of safer assets such as the Government of Canada's (GoC) long-term bonds. So far, the GoC 5 years bonds have shown no indication of drastic capital inflow...alas, we just need to keep the EU on the watch to see what's next.

Falling Interest Rates

After Brexit, United Kingdom is looking to hold onto a rock-bottom interest rate at 0.5%. It looks like the United States will choose to delay their interest rate hike, and sticks to a lower interest rate instead. This means, Canada is most likely to follow through with lower interest rate as well. For the mortgage industry, this could indicate a huge impending danger. A lower interest rate encourages spending, which equals to more investment towards the mortgage industry. The Canadian housing market has been suspected to hold a bubbling economy ─ a steady increase in price, waiting for a sharp and sudden fall. In fact, high housing prices have translated into high Canadian household debts. Household debt has increased by 22% in the third quarter of 2015, and unsurprisingly, high-debt households are located in areas with highest home prices. Higher investment caused by low interest rate will not only lead to higher home prices, it could also exacerbate the burst of the bubbling mortgage industry.

Market Volatility

Naturally, following any huge economical decision, the global market will be volatile due to speculation. As previously mentioned, this could mean capital inflow to a relatively stable Canadian financial market. However, global market's downturn and instability could also affect Canadian market's negatively. In this case, Canada will experience short-selling and lower investment rates. This would lead to lower mortgage rates and effectively, cools down the mortgage bubble economy. The 2008 global crisis was so traumatizing as the world was unprepared. Contrastingly, the global audience, especially Canada, was prepared for Brexit, and so, Canadian investors refuse to go through with a knee-jerk reaction. Thus, Canadian mortgage market has been affected only slightly, if any, by the European market volatility. We are confident in Canadian's investors informed decision, and so, we expect this trend to continue.

So, what’s next?

Overall, as Brexit has only occurred last week, it is very hard to make a long-term prediction. Many events are still unfolding and we can only hope for the best. Nonetheless, Canadian mortgage rates have been largely stable and unaffected by the sudden economic shocks and market volatility. If you are looking for more information to rent out a new condominium, feel free to call us at 1-800-610-4510 to see if you are eligible for a rebate of up to $30,000.

Contact Us

Rebate Calculator

Please enter the total value of your renovation including tax.

Total construction cost
(including taxes)
Search Our Blogs

More of our Blogs

30 April 2024

What to Do When You've Been Contacted By the CRA for Your HST Rebate

Being thorough, accurate, and honest in your application is essential for a successful HST rebate claim. To ensure that it is accurate, contact Rebate4U. Our team has successfully secured millions of dollars in rebates for our clients, for over a decade.

View Full Post
15 April 2024

How to Cash in on Your Spring Renovations with the Ontario Rebate Program

Learn more about how you can cash in on your spring renovations with the Ontario rebate program!

View Full Post
26 March 2024

Tips to Ensure Your Renovation is Substantial Enough for the HST Rebate on New Homes

The Harmonized Sales Tax (HST) Rebate on home renovations is a significant financial incentive for homeowners in Ontario, providing a golden opportunity to recoup a portion of the expenses involved in upgrading and enhancing their living spaces. This rebate is offered via Canada Revenue Agency, and it aims to encourage property owners to invest in their homes, not just for personal satisfaction...

View Full Post
13 March 2024

How to Claim the HST Rebate on Rental Properties

The HST rebate on rental properties or the New Residential Rental Property Rebate is an excellent opportunity for new condos and homeowners who are not planning on occupying the property to get some money back that was invested in the purchase of the new home. Choosing to rent a property is an effective secondary passive income. When paired with the HST Rebate in Ontario, a rental property can be...

View Full Post
26 February 2024

How to Find a Tenant Ahead of Your HST Rental Rebate Application

If you’re renting out a new residential property, the HST Rebate in Ontario is a great opportunity to get back some of the money you’ve invested into purchasing the condo. Available via Canada Revenue Agency, the New Residential Rental Rebate Program can mean thousands of dollars back. To qualify for this rebate program in Ontario, you must meet the criteria set out by Canada Revenue...

View Full Post
10 February 2024

3 Stand-Out Benefits of Applying for HST Rebate on Home Renovations

Home renovations are a great way to revitalize your existing property to transform it into your dream home. Working with the best contractors you can make large-scale upgrade plans that rebuild your home from the ground up. With programs like the New Home HST Rebate in Ontario, the cost of these significant upgrades can be mitigated. By working with the experts at Rebate4U you can assess your...

View Full Post
31 January 2024

Why Turn Repairs into Renovations with the Home Renovation HST Rebate

Whether you’ve recently purchased a new home that needs a lot of work or are ready to upgrade your existing home, renovations and remodels can rack up quite the bill. But for homeowners in Ontario, the HST rebate on home renovations is a viable option that can help you get more return from your investment. Read on for more information!

View Full Post
18 January 2024

Which Part of Your Home Renovations Are Subject to HST in Ontario?

Like with the transaction of any good or service in the province, there is a 13% tax (Harmonized Sales Tax) added to every purchase, including the sale properties. When buying a home, this tax can add up to a substantial amount. In Ontario, the HST Rebate program is offered to residential property buyers as a way to offset the cost of new home purchases.

View Full Post
15 December 2023

What to Do When You're Not Ready to Move Into Your New Condo

If you’ve bought a new condo and want more insight into your rebate options, from the HST Rebate on new homes to the New Residential Rental Property Rebate, contact the experts at Rebate4U for more insight and personal guidance.

View Full Post
27 November 2023

So You Built a New Home, Now What?

If you’ve recently finished building your new property in the last two years, you may be eligible for money back with the HST rebate in Ontario. The program allows homeowners to recover a portion of their HST spent on construction.

View Full Post
Homeowners, obtain an HST rebate of up to $30,000 today!
get started

Why Choose Rebate4U?

Experienced Specialists

For over 10 years, the Rebate4U team has the knowledge and expertise to help residential property owners throughout Ontario successfully apply for regional HST Rebate programs.

Free Consultations

Our specialists offer complimentary consultations where we review your eligibility to determine whether you qualify for an Ontario HST Rebate so you can proceed with your application confidently.

Millions Awarded

We are able to expertly navigate rebate opportunities, staying up-to-date on the most recent rebate developments and changes in the HST Rebate program to maximize returns. To date, we’ve successfully acquired millions of dollars for clients in total.

Customer Commitment

The Rebate4U team is dedicated to delivering the highest level of customer service, we are here to answer your questions and help you navigate the intracises of your application easily and efficiently.

Cashing-In on the HST Rebate is as Easy as 1-2-3
Contact REBATE4U

Set up a quick, free consultation with the Rebate4U team to explore your HST Rebate options.


Submit your required documents to Rebate4U, and we'll handle your application.


Apply for the rebate and receive thousands in rebates in just weeks with Rebate4U.


We are proud to be working with top Canadian companies

Recent Posts view all posts

What to Do When You've Been Contacted By the CRA for Your HST Rebate

Being thorough, accurate, and honest in your application is essential for a successful HST rebate claim. To ensure that it is accurate, contact Rebate4U. Our team has successfully secured millions of dollars in rebates for our clients, for over a decade.

Read More

How to Cash in on Your Spring Renovations with the Ontario Rebate Program

Learn more about how you can cash in on your spring renovations with the Ontario rebate program!

Read More
We Are Based

101-3185 Bathurst St
Toronto ON
M6A 2B2


Connect With Us

Please, enter a valid value

We are sorry...

But the values you entered are invalid


In celebration of our 3 year anniversary at Rebate4u Inc, we have decided to reduce our fee structure for all new home and renovation rebates including the New housing rental rebate.  

Don't waste your time looking for anyone else to take care of this because we will not be under sold.
Please fill out the form below or call us at 1-800-610-4510

Please, enter a valid value