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

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
17 October 2023

Signs You'll Benefit from the HST Rebate in Ontario

The HST Rebate in Ontario is a valuable and beneficial program available to homeowners in Ontario. Unfortunately, many new home buyers or even long-time homeowners are unaware of the program’s existence or their eligibility. The new home HST Rebate can be nuanced, but with the guidance of an experienced, trusted, and knowledgeable professional like the team at Rebate4U,...

View Full Post
29 September 2023

Benefits of Renting Your Newly Purchased Home

It’s not uncommon for property owners to purchase a new home or condo with the intention of making it their primary residence but then later change their minds to use the newly acquired or built property as a rental unit. Whether you build the home from the ground up or determine that you no longer want to use a newly purchased property from the builder as a home for yourself, there are...

View Full Post
20 September 2023

Experts Tips for Navigating the HST Rebate on Newly Built Homes

The HST rebate in Ontario is a fruitful opportunity for homeowners throughout the region. As housing and building materials costs increase, it’s no surprise that property owners are looking for ways to reduce their investment costs. Offered through Canada Revenue Agency, the new home HST Rebate is a great way to get back some of the money spent on renovating or building a new home. In...

View Full Post
21 August 2023

Tips for Planning Your New Home Rebuild HST Rebate

Rebuilding your home from the ground up can be a daunting undertaking but incredibly rewarding with the right approach and programs like the HST Rebate in Ontario. The New Home HST Rebate allows qualifying residential property owners to recover a portion of their rebuilding costs spent on HST. In Ontario, every sale of services or goods comes with a 13% Harmonized Sales Tax charge, including...

View Full Post
31 July 2023

Identifying HST Rebate Eligible Elements in Your Construction Journey

The HST Rebate in Ontario is an excellent opportunity for property owners looking to undergo major construction. Whether you've recently purchased a plot of land to build a brand new property or are planning to tear down an existing home to its studs and renovate it, the HST Rebate on a newly constructed or renovated home can supplement a significant portion of your costs. So much energy, time,...

View Full Post
24 July 2023

Why Rebuild Damaged Homes with HST Rebate in Ontario

Residential properties can be damaged significantly for a multitude of reasons, from house fires and windstorms to wildfires. Severely damaging properties can be a huge financial expense. But with insurance and Ontario’s HST rebate program, knocking down your property and rebuilding it from the ground up can be the most cost-effective route. Not only are you minimizing your expenses with the HST...

View Full Post
25 May 2023

Guide to HST Rebates & Renovations this Summer

As spring turns into Summer and the pandemic fades into the rearview mirror, more and more homeowners throughout Ontario are embarking on shelved renovation and home construction projects. What many people don’t know is that your construction or renovation of a newly built home can award you significant savings through the HST Rebate in Ontario. Various rebates are available through the Canada...

View Full Post
01 May 2023

How to Cash in on Your Major Home Addition

One of the benefits of residential properties is that homeowners can leverage renovations entirely to customize and upgrade their space. In some cases, this may mean knocking down a property, tearing it down to its studs, and starting over again. In other situations, renovating your home means constructing a major addition. When you work on your home, the cost is a common concern, but with the HST...

View Full Post
31 March 2023

Benefits of Renting Your New Home

If you’ve been thinking about investing in a new home or you’ve put the deposit down on a new home but aren’t quite sure if you’re ready to make a move, the thought of renting may have crossed your mind. With the Ontario HST rebate program, a rental property can be a great option to get some money back on your investment into a new home. The New Residential Rental Property Rebate will buy...

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

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.

Read More

Signs You'll Benefit from the HST Rebate in Ontario

The HST Rebate in Ontario is a valuable and beneficial program available to homeowners in Ontario. Unfortunately, many new home buyers or even long-time homeowners are unaware of the program’s existence or their eligibility. The new home HST Rebate ca...

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