Navigating the mortgage world can feel like a maze, but having the right guidance makes all the difference. Neil Drepaul, a seasoned mortgage expert from Canadian Mortgage Services, has been helping buyers for over 12 years. He’s sharing his insights on the mortgage landscape for 2026, offering practical tips to help first-time buyers and seasoned homeowners.
Why Work With a Mortgage Broker?
Mortgages can be tricky, and the numbers don’t always tell the full story. Neil explains that many people come in thinking they’ll easily qualify for a mortgage, only to realize they can’t afford a home after all. Others assume they won’t qualify, but with the right guidance, they do.
While online mortgage calculators are helpful, they’re not foolproof. They often miss key variables like accurate debt-service ratios, proper stress testing, and varying property taxes. That’s where a mortgage broker comes in, offering tailored advice and helping you avoid costly miscalculations.
Common Mortgage Roadblocks
Neil has seen it all, and one of the biggest challenges for buyers is managing debt. A large car loan, for example, can wreak havoc on your debt-to-income ratio and lower your chances of approval. Even unused lines of credit can be a problem since some banks factor in the full amount owed—even if you haven’t spent a dime. This is circumstantial, of course, which is why there’s even greater importance of knowing where to go, and when to go there.
When it comes to credit scores, Neil notes that most big banks (A-tier) want to see at least 600 (but most are looking for even higher than this). However, a great score doesn’t guarantee the best rates. Other factors, like your debt-service ratio, play a big role in determining what kind of lender you’ll qualify for.
Saving for Your First Home
If you’re working with a real estate agent in Milton, Neil suggests starting with a clear plan and budget. Take a hard look at your spending habits—do you have an expensive car payment or a penchant for dining out? These small choices add up and could delay your dream of homeownership.
Tracking your expenses is a game-changer. Using a credit card to monitor your spending can help you see exactly where your money is going. You might be surprised how much those daily coffees and snacks add up—sometimes to the tune of $1,500 a year! Start by reviewing these 3 steps here!
Why Pre-Approval Is a Must
Before you even think about house hunting, Neil stresses the importance of getting pre-approved for a mortgage. Pre-approval gives you a clear picture of your budget, so you don’t waste time looking at homes you can’t afford—or miss out on homes you can. Check out this blog, where we discuss how to obtain a mortgage in even more detail!
PRO TIP: Having a pre-approval in-hand can be leveraged to negotiate a better offer, or put you in a position to win a bidding war against other buyers who aren’t as prepared.
What’s on the Horizon for Mortgage Rates in 2026?
So, what does 2026 have in store for buyers in the Milton real estate market? Neil predicted that in 2025, we’d see continued efforts by banks to attract buyers with flexible policies and competitive rates. TD Bank’s earlier forecasts indicated that rates might stabilize or slightly decline as inflationary pressures ease and housing demand grows. Since then, this has happened. Neil believes more competitive rates will follow the BoC’s rate drop announcement on October 29th, 2025. 2026 should be a fairly consistent year, rate-wise, with modest downward movements, but also less threat of upward movement.
While the policy rate was 2.25% heading into 2025’s year-end, it’s important to remain cautious. Factors like housing supply shortages and unexpected economic shifts could impact predictions for 2026. Neil’s advice? Stay informed, work with a trusted mortgage broker, and the best Milton real estate agents.
Advice for First-Time Buyers
Neil’s best advice for first-time buyers is to start with a conversation. Speaking with a mortgage broker early in the process can save you a lot of stress down the line. By getting pre-qualified, you’ll know exactly where you stand and can focus on finding a home that fits your budget. How soon should these conversations be had? At least 3 months before starting your home search. And for even better planning, Neil is willing to speak with you much sooner than that (up to a year prior, if need be).
It’s also important to remember that your first home doesn’t have to be your dream home. Think of it as a stepping stone toward your long-term goals. Make it less stressful, and check out these first-time buyer tips!
If you’re ready to start your journey toward homeownership, connect with KT at 1 (800) 617-0090. Let’s make your homeownership dreams a reality this year
