Derrick Kapitan

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Toronto, ON
Derrick Kapitan

Shared Knowledge, Life Experience and Continuous Learning Mortgage Agent Level 1
Lic
The Mortgage Coach FSRA #13120

I’m a Mortgage Agent with The Mortgage Coach, helping clients across Toronto and the GTA navigate every stage of the property journey. I specialize in guiding first-time home buyers getting into the market, homeowners looking to refinance or access equity to grow and invest, and those focused on staying in the market long-term through reverse mortgage solutions. Known for a transparent, education-first approach, I focus on building trust, simplifying the mortgage process, and creating long-term mortgage strategies — not just transactions.

11/05/2026

🏡 Your Home’s Value Has Declined. But What About Your Mortgage Balance?

For many Ontario homeowners who purchased during 2021 or early 2022, the housing market looks quite different today.

In several markets, property values have declined from their pandemic-era peaks.

But here’s something worth considering.

What happens when your property’s value decreases while your mortgage balance remains higher than expected?

With certain fixed-payment Variable-Rate Mortgages (VRMs), rising interest rates have meant more of each payment going toward interest and less toward reducing principal.

That can affect how quickly homeowners build equity.

📊 Consider this example:

🏠 Original property value: $800,000

🏠 Current property value: $700,000

💰 Outstanding mortgage: $600,000

If the mortgage balance remained at $600,000, the homeowner’s equity would have declined from $200,000 to $100,000.

That’s a significant difference.

And it can affect refinancing opportunities, accessing home equity and potentially switching lenders.

The important message?

Your property’s value and your mortgage balance both matter.

🎥 Tomorrow, we’ll discuss why reviewing your mortgage strategy before renewal can help you better understand your options.

Markets move. Life moves faster.

Derrick Kapitan
Mortgage Agent Level 1
Lic M24003293
The Mortgage Coach | FSRA 13120
647.219.4743
[email protected]

11/05/2026

📊 Same Mortgage Payment. Less Principal Repaid. What’s Happening?

Yesterday, we explored how a 0.25% interest-rate increase affects a $500,000 mortgage.

Today, let’s look beyond the monthly payment.

With a fixed-payment Variable-Rate Mortgage (VRM), your payment may remain unchanged even when interest rates increase.

But here’s what can change:

1. Interest increases. A greater portion of your payment goes toward borrowing costs.

2. Principal repayment decreases. Less money is applied toward reducing your outstanding mortgage balance.

3. Amortization may extend. Your mortgage could take longer to repay than originally anticipated.

4. Trigger rates matter. If your payment no longer covers the interest, your lender’s mortgage provisions determine what happens next.

For homeowners who purchased or renewed during the low-interest-rate environment of 2020–2022, understanding these differences is particularly important.

Three questions worth asking your lender:

✅ What is my current remaining amortization?

✅ How much of my monthly payment goes toward principal versus interest?

✅ Does my mortgage have trigger-rate or trigger-point provisions?

Your mortgage statement and agreement can provide valuable information.

💬 Have you reviewed your remaining amortization recently?

Tomorrow, we’ll connect this discussion to another important factor: declining property values and the impact on home equity.

Don’t just renew your mortgage. Review your strategy.

Derrick Kapitan
Mortgage Agent Level 1
Lic
The Mortgage Coach | FSRA #13120
647.219.4743
[email protected]

11/04/2026

🏡 Your Mortgage Payment Hasn’t Changed. Is That Really Good News?

Following last week’s Bank of Canada rate increase, some homeowners with variable-rate mortgages may have noticed something interesting.

Their monthly mortgage payment hasn’t changed.

But does that mean everything is staying on track?

Not necessarily.

With certain fixed-payment Variable-Rate Mortgages (VRMs), when interest rates rise:

📈 More of your monthly payment goes toward interest.

📉 Less goes toward reducing your mortgage principal.

⏳ Your remaining amortization may increase, meaning it could take longer to pay off your mortgage.

And if interest rates rise far enough, you could reach what’s known as a trigger rate.

That’s when your regular payment is no longer sufficient to cover the interest being charged.

Depending on your lender and mortgage agreement, this could require a payment adjustment or other action.

In some circumstances, unpaid interest may even be added to your mortgage balance, resulting in negative amortization.

Here’s the important question:

Is your mortgage balance decreasing as quickly as you expected?

🎥 Tomorrow, we’ll explore another important consideration: what happens when property values decline while mortgage balances remain higher than anticipated?

Your mortgage payment tells only part of the story.

Derrick Kapitan
Mortgage Agent Level 1
Lic M24003293
The Mortgage Coach | FSRA 13120
647.219.4743
[email protected]

11/03/2026

📊 $500,000 Mortgage — What Does a 0.25% Rate Increase Really Cost?

Following the Bank of Canada’s October 28 rate announcement, let’s put the numbers into perspective.

Consider a homeowner with a $500,000 mortgage and 25 years remaining on their amortization.

Adjustable-Rate Mortgage (ARM)

Before: $2,753/month at 4.45%

After: $2,825/month at 4.70%

📈 Approximately $72 more each month.

Fixed-Payment Variable-Rate Mortgage (VRM)

Your payment may remain the same, but approximately $104 more of your next payment goes toward interest rather than principal.

That means less money reducing your mortgage balance.

Here’s the important distinction:

An ARM typically adjusts your payment to reflect interest-rate changes.

A fixed-payment VRM may keep your payment unchanged, potentially extending the time required to repay your mortgage.

Same rate increase. Different impact on your financial future.

💬 Question: Would you prefer your mortgage payment to adjust with interest rates, or remain stable while your principal repayment changes?

Tomorrow, we’ll discuss amortization, trigger rates and why an unchanged payment doesn’t always mean everything is on track.

Figures are illustrative and rounded. Actual results depend on lender terms, compounding and payment structure.

Derrick Kapitan
Mortgage Agent Level 1
Lic M24003293
The Mortgage Coach | FSRA 13120
647.219.4743
[email protected]

11/03/2026

🏡 A 0.25% Rate Increase. A $500,000 Mortgage. What’s the Real Impact?

Last week, the Bank of Canada increased its overnight interest rate by 0.25 percentage points, bringing it to 2.50%.

That might not sound like much.

But what does it mean for your monthly mortgage payment?

Let’s look at an example using a $500,000 mortgage with 25 years remaining.

📊 Before the increase:

* Mortgage rate: 4.45%
* Monthly payment: approximately $2,753

📈 After a 0.25% increase:

* Mortgage rate: 4.70%
* Monthly payment: approximately $2,825

That’s approximately $72 more per month, or $864 annually, for an Adjustable-Rate Mortgage (ARM).

But here’s where it gets interesting.

With a fixed-payment Variable-Rate Mortgage (VRM), your monthly payment may remain unchanged.

Instead, approximately $104 more of your next monthly payment goes toward interest, leaving less to reduce your mortgage principal.

Same mortgage balance. Same rate increase. Two different outcomes.

One affects your monthly cash flow immediately. The other can affect how quickly you pay down your mortgage.

🎥 Tomorrow, we’ll explore what happens when your mortgage payment stays the same but your amortization changes.

Don’t just focus on your mortgage payment. Understand what’s happening to your mortgage balance.

Illustrative calculations based on a $500,000 balance, 25-year remaining amortization, monthly payments and Canadian semi-annual compounding. Assumes the lender passes through the full 0.25-percentage-point increase. Actual payments vary by lender and mortgage terms.

Derrick Kapitan
Mortgage Agent Level 1
Lic M24003293
The Mortgage Coach | FSRA 13120
647.219.4743
[email protected]

11/03/2026

📊 Two Variable-Rate Mortgages. One Interest-Rate Increase. Two Different Outcomes.

Do you know which type of variable-rate mortgage you have?

Following the Bank of Canada’s October 28 rate increase, understanding the difference between an ARM and a fixed-payment VRM is particularly important.

ARM — Adjustable-Rate Mortgage

Your mortgage payment typically changes when your lender’s prime rate changes.

VRM — Fixed-Payment Variable-Rate Mortgage

Your payment may stay the same, but the amount allocated to principal and interest changes.

Here’s why that matters:

A homeowner with an ARM may experience an immediate increase in monthly expenses.

A homeowner with a fixed-payment VRM may see no immediate payment increase, but could be paying down their mortgage more slowly.

Same rate change. Different impact on your cash flow and mortgage balance.

And remember, your specific lender and mortgage agreement determine how your payments respond.

💬 Question: Do you know whether you have an ARM or a fixed-payment VRM?

Tomorrow, we’ll explore the numbers using a $500,000 mortgage and the impact of a 0.25% rate increase.

Don’t just renew your mortgage. Review your strategy.

Derrick Kapitan
Mortgage Agent Level 1
Lic
The Mortgage Coach | FSRA #13120
647.219.4743
[email protected]

11/02/2026

🏡 ARM vs. VRM — Same Rate Increase. Different Impact.

True or False?

When the Bank of Canada raises interest rates, everyone’s variable-rate mortgage payment automatically increases.

The answer might surprise you!

Following last week’s Bank of Canada rate increase to 2.50%, it’s an important question for Canadian homeowners.

I was recently asked about the difference between an Adjustable-Rate Mortgage (ARM) and a fixed-payment Variable-Rate Mortgage (VRM).

Here’s the distinction:

🔹 ARM — Adjustable-Rate Mortgage

When your lender’s prime rate changes, your mortgage payment typically adjusts. Your payment rises or falls to reflect the new interest rate, generally keeping your amortization on schedule.

🔹 VRM — Fixed-Payment Variable-Rate Mortgage

Your monthly payment may remain unchanged when interest rates move. However, the amount going toward interest versus principal changes.

When rates increase, more of your payment goes toward interest and less toward reducing your mortgage balance.

Over time, this can affect your remaining amortization.

So, the answer is FALSE!

Not all variable-rate mortgages respond the same way.

🎥 Tomorrow, we’ll put real numbers behind this discussion and explore what a 0.25% increase means on a $500,000 mortgage.

Know your mortgage. Not just your interest rate.

Derrick Kapitan
Mortgage Agent Level 1
Lic
The Mortgage Coach | FSRA #13120
647.219.4743
[email protected]

11/01/2026

📊 From 0.25% to 5.00% — and Now 2.50%. What a Decade!

Over the past 10 years, the Bank of Canada’s overnight interest rate has taken Canadian homeowners on quite a journey.

📉 2020–2021: Historically low rates of 0.25% during the pandemic.

📈 2022–2023: Rapid increases, reaching 5.00% in 2023.

📉 2024–2025: A period of declining interest rates.

📈 October 28, 2026: The Bank of Canada raises its overnight rate to 2.50%.

But here’s the question:

When interest rates change, does your mortgage payment automatically change too?

The answer might surprise you.

This week, we’re exploring adjustable-rate versus fixed-payment variable-rate mortgages, monthly payments, amortization and the impact of changing property values.

Because understanding your mortgage means looking beyond the interest rate.

💬 Question: If you have a variable-rate mortgage, do you know whether your payment adjusts when rates change?

Sharing Knowledge. Sharing Life Experiences. Continuous Learning.

Derrick Kapitan
Mortgage Agent Level 1
Lic. M24003293
The Mortgage Coach | FSRA 13120
647.219.4743
[email protected]

11/01/2026

🏡 10 Years of Interest Rate Changes. What Have We Learned?

From historically low interest rates during the pandemic to the rapid increases that followed, Canadian homeowners have experienced quite a journey over the past decade.

Last Wednesday, October 28, the Bank of Canada raised its overnight rate by 0.25 percentage points to 2.50%.

But what does that really mean for your mortgage?

Here’s something many homeowners may not realize:

Not all variable-rate mortgages respond to interest rate changes the same way.

Some homeowners see their monthly payments increase, while others may see their payments remain unchanged—but less money goes toward paying down their mortgage.

This week, I’ll explore:

✅ The Bank of Canada’s 10-year interest-rate journey.

✅ The difference between an Adjustable-Rate Mortgage (ARM) and a fixed-payment Variable-Rate Mortgage (VRM).

✅ What a 0.25% increase means on a $500,000 mortgage.

✅ How changing interest rates and declining property values can affect your home equity.

Whether you’re Getting In, Growing, or Staying in the housing market, understanding your mortgage is an important part of making informed decisions.

🎥 Follow along this week as we turn mortgage terminology into practical knowledge.

Markets move. Life moves faster.

Derrick Kapitan
Mortgage Agent Level 1
Lic. M24003293
The Mortgage Coach | FSRA 13120
647.219.4743
[email protected]

10/31/2026

🏡 From Renting to Owning: Your Next Step Starts Here!

You’ve worked hard to build your business. Now, what about building your future as a homeowner?

Throughout this week, we’ve explored the challenges and opportunities self-employed Canadians may encounter when preparing to purchase their first home.

Here’s what I hope you’ll take away:

💰 Know Your Numbers – Understand how lenders assess your business income.

📂 Get Organized – Prepare your tax returns, financial statements and supporting documents.

📊 Plan Your Finances – Review your savings, credit, debts and business tax strategy.

🏦 Understand Your Options – Different mortgage lenders have different qualification guidelines.

🤝 Start the Conversation Early – A mortgage strategy review can help identify what you’re ready for today and what you may need to work toward.

💡 Remember: Homeownership isn’t just about qualifying for a mortgage. It’s about finding a financially sustainable path that fits your life and business.

If you’re self-employed and currently renting, I’d welcome the opportunity to help you explore your options.

Your first home starts with a plan, not an open house.

Derrick Kapitan
Mortgage Agent Level 1
Lic. M24003293
The Mortgage Coach | FSRA 13120
647.219.4743
[email protected]

Address

Toronto, ON

Website

https://www.themortgagecoach.ca/mortgage-broker/DerrickKapitan/?selectedProvince=ON

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