June has arrived, bringing longer days, warmer evenings, and plenty of opportunities to focus on homeownership, finances, and future planning.
This month, we’re exploring how small mortgage prepayments can create substantial long-term savings, taking a look at some great edible garden options for Canadian homeowners, and reviewing the latest outlook for Canada’s housing market.
Small Extra Mortgage Payments = Big Long-Term Savings
When you have extra money available, deciding where to put it can be challenging. Should you build your savings account, tackle other expenses, or pay down your mortgage?
The reality is that even modest mortgage prepayments can have a significant impact on both the amount of interest you pay and how quickly you become mortgage-free.
A Real-Life Example
Consider a mortgage with:
- Mortgage Balance: $500,000
- Interest Rate: 4.99%
- Amortization: 25 Years
With these numbers, the monthly payment would be approximately $2,905.
If no additional payments are made over the life of the mortgage, the homeowner would pay approximately:
- $371,554 in interest
- $871,554 in total payments
That’s a substantial amount of interest over time.
Three Effective Ways to Pay Down Your Mortgage Faster
1. Lump Sum Payments
Many lenders allow annual lump sum payments directly against your principal balance. Even a single extra payment each year can dramatically reduce your amortization period and overall interest costs.
2. Increase Your Regular Payments
Rounding your mortgage payment up by even $100–$200 per month can create significant long-term savings while remaining manageable within your monthly budget.
3. Accelerated Payment Frequencies
Switching from monthly payments to accelerated bi-weekly or weekly payments allows you to make the equivalent of one extra monthly payment each year. This simple adjustment can shave years off your mortgage.
The Power of Small Changes
Many homeowners are surprised to learn that relatively small increases to their payment schedule can save tens of thousands of dollars over the life of their mortgage.
The earlier you begin making prepayments, the greater the impact. Every extra dollar goes directly toward reducing principal, which means less interest charged over time.
Before making prepayments, be sure to review your mortgage terms, as each lender has specific rules and limits regarding prepayment privileges.
Growing an Edible Garden This Summer
Summer is also the perfect time to enjoy your outdoor space and grow some of your own food.
If you haven’t started seedlings yet, don’t worry—there are still plenty of options that thrive when planted later in the season.
Know Your Growing Conditions
Success starts by understanding:
- Your Canadian hardiness zone
- Sun exposure
- Soil conditions
Best Plants for Full Sun
- Radishes
- Green Beans
- Saskatoon Berries
Best Plants for Partial Shade
- Lettuce
- Kale
- Beets
- Cucumbers
Best Plants for Full Shade
- Mint
- Rhubarb
- Parsley
Create a Beautiful and Functional Garden
Many edible plants can double as attractive landscaping features. Consider incorporating:
- Swiss Chard
- Basil
- Eggplant
- Lavender
- Chives
- Arugula
- Hot Peppers
These plants provide both visual appeal and fresh ingredients throughout the season.
Consider Native Plants
Native plants are often easier to maintain and naturally suited to your local climate.
Popular edible native options across much of Canada include:
- Wild Strawberries
- Watercress
- Sage
- Leeks
- Violets
- Fiddleheads
Canadian Housing Market Outlook: 2026–2027
Economist Dr. Sherry Cooper’s latest outlook suggests Canada’s housing market is entering a period of gradual stabilization rather than a rapid rebound.
Interest Rates Are Helping Affordability
The Bank of Canada has reduced its overnight rate from the peak levels reached during the inflation cycle and currently sits at 2.25%.
While mortgage rates remain higher than many borrowers became accustomed to during the pandemic years, they are considerably lower than the highs experienced in late 2023.
This has improved affordability and encouraged some buyers to re-enter the market.
Economic Growth Remains Modest
Canada’s economy continues to face several headwinds:
- Slower GDP growth
- Elevated household debt levels
- Softer labour markets
- Reduced immigration targets
- Ongoing global uncertainty
These factors are expected to keep housing demand relatively subdued through 2026.
Home Prices Expected to Remain Stable
Most forecasts suggest modest national price growth over the next two years.
Rather than seeing dramatic increases or declines, Canada’s housing market is expected to experience a period of balance as buyers become more cautious and sellers face increased competition.
Regional Markets Will Vary
Not all housing markets will perform equally.
Stronger Markets
- Calgary
- Edmonton
- Many areas of Quebec
These regions continue benefiting from stronger affordability and interprovincial migration.
Slower Markets
- Greater Toronto Area
- Greater Vancouver Area
Affordability challenges and elevated housing supply are expected to continue weighing on these markets.
Housing Supply Remains the Biggest Challenge
Canada still faces a significant housing shortage.
While demand growth has moderated, new housing construction remains well below the levels required to restore affordability across the country.
Without substantial increases in housing starts, affordability challenges are likely to remain a long-term issue for many Canadians.
Final Thoughts
Whether you’re looking to save thousands in mortgage interest through strategic prepayments, planning improvements around your home this summer, or keeping an eye on housing market trends, small decisions made today can have a meaningful impact on your financial future.
If you’d like to review your mortgage strategy, explore prepayment options, or discuss your home financing goals, I’d be happy to help.