Learn more about Canadian mortgage rates, rules and the latest news – read on!
Latest News
Bank of Canada holds rate, hints at increases to come Dec 6th
OTTAWA — The Bank of Canada stuck with its trend-setting interest rate Wednesday — but it offered fresh, yet cautious, warnings to Canadians that increases are likely on the way.
The central bank has now left the rate locked at one per cent for two straight policy announcements after the stren.... More »
New mortgage rules sending borrowers to alternatives + MORE Feb 7th
TORONTO — Mortgage brokers say the borrower rejection rate from large banks and traditional monoline mortgage lenders has gone up as much as 20 per cent after Canada’s banking regulator imposed a new stress test for home buyers who don’t need mortgage insurance.
As a result, alternativ.... More »
What happens when a buyer backs out of a real estate deal? + MORE Sep 2nd
When it comes to backing out of a real estate deal, the law doesn’t tend to side with the dealbreaker, says Ron Butler, a veteran mortgage broker and one of the founders of Butler Mortgage in Toronto. If you’re the buyer, “You should find a way to complete the sale—beg, borrow, do whatever y.... More »
B.C. Regulator Shuts Down Unlicensed Broker with $500M in Volume Jun 5th
An unlicensed B.C. mortgage broker accused of arranging half a billion in mortgages for hundreds of clients has been issued a cease-and-desist order by the province’s mortgage regulator. The Financial Institutions Commission of British Columbia (FICOM) announced last week that its Registrar of.... More »
Do you pay capital gains tax when separating or divorcing? + MORE Jan 25th
I just read your article on paying capital gains on a property inherited from a spouse when there was no official separation agreement in place. Interesting, and I have a related question. If spouses separate with an official separation agreement but keep the matrimonial home and mortgage in both na.... More »
Q2 2016 Bank Earnings – Mortgage Morsels
– canadianmortgagetrends.com
Canada’s Big 6 banks have wrapped up another earnings season, raking in more than $8.5 billion in the second quarter. Among the highlights: Most of the banks anticipated losses from the Fort McMurray wildfire, but nothing headline-making. Scotia and TD both reported small declines in their residential mortgage portfolios. Net interest margins dropped almost across the board. In keeping with CMT’s quarterly ritual, we’ve sifted through the Big Banks’ quarterly earnings reports, presentations and conference calls, and compiled all the mortgage-related goodies. We have to admit though, this quarter was really kind of dull. Whatever was notable is in blue. ********* Bank of Montreal Q2 READ MORE
Business Highlights
– canadianbusiness.com
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10 years after housing peaked, US is more of a renter nation
MOUNT PLEASANT, South Carolina (AP) — It’s a troublesome story playing out across America in the 10 years since the housing bubble burst: homeowners are thriving while renters are struggling.
Longtime owners are enjoying the benefits of growing equity and reduced mortgage payments from ultra-low rates. But for America’s growing class of renters, surging costs, stagnant pay and rising home values have made it next to impossible to save enough to buy.
Ownership has become a more distant dream for the many Americans who still regard it as a route to prosperity and pride.
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US stocks rise as investors grow hopeful about British vote
NEW YORK (AP) — U.S. stocks rose sharply on Monday as investors grew more hopeful that Britain will remain in the European Union, letting go of fears that have pulled stocks down in the last two weeks.
Asian stocks traded higher and indexes in Europe soared as the latest opinion polls and betting markets suggest it’s more likely Britain will stay in the EU than leave it…
10 years after housing peaked, US is more of a renter nation
MOUNT PLEASANT, South Carolina (AP) — It’s a troublesome story playing out across America in the 10 years since the housing bubble burst: homeowners are thriving while renters are struggling.
Longtime owners are enjoying the benefits of growing equity and reduced mortgage payments from ultra-low rates. But for America’s growing class of renters, surging costs, stagnant pay and rising home values have made it next to impossible to save enough to buy.
Ownership has become a more distant dream for the many Americans who still regard it as a route to prosperity and pride.
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US stocks rise as investors grow hopeful about British vote
NEW YORK (AP) — U.S. stocks rose sharply on Monday as investors grew more hopeful that Britain will remain in the European Union, letting go of fears that have pulled stocks down in the last two weeks.
Asian stocks traded higher and indexes in Europe soared as the latest opinion polls and betting markets suggest it’s more likely Britain will stay in the EU than leave it…
Canadian banks could withstand severe housing crisis
– moneysense.ca
TORONTO – Ratings agency Moody’s says that despite soaring home prices and household debt levels, Canadian banks could weather the effects of a severe housing crisis.
Moody’s says it conducted stress tests to determine the impact on major Canadian banks in the event of a 25 per cent drop in home prices countrywide.
The analysis also included an additional 10 per cent decline in Ontario and British Columbia, where prices have skyrocketed in recent years.
Who’s to blame for high home prices »
In a report published Monday, the ratings agency says that under such a scenario total direct losses to the banking system would reach almost $18 billion. However, Moody’s says the banks would be able to generate internal capital to cover those losses within several quarters.
The ratings agency says the negative impacts of a housing downturn in Canada would be reduced by a number of factors that differentiate Canada from U.S. mortgage markets.
Those factors include government-guaranteed mortgage creditor and lender insurance, as well as lower rates of subprime lending and a lower prevalence of certain kinds of securitization practices…
Moody’s says it conducted stress tests to determine the impact on major Canadian banks in the event of a 25 per cent drop in home prices countrywide.
The analysis also included an additional 10 per cent decline in Ontario and British Columbia, where prices have skyrocketed in recent years.
Who’s to blame for high home prices »
In a report published Monday, the ratings agency says that under such a scenario total direct losses to the banking system would reach almost $18 billion. However, Moody’s says the banks would be able to generate internal capital to cover those losses within several quarters.
The ratings agency says the negative impacts of a housing downturn in Canada would be reduced by a number of factors that differentiate Canada from U.S. mortgage markets.
Those factors include government-guaranteed mortgage creditor and lender insurance, as well as lower rates of subprime lending and a lower prevalence of certain kinds of securitization practices…
Rates unchanged at weekly US Treasury bill auction
– canadianbusiness.com
WASHINGTON – Interest rates on short-term Treasury bills were unchanged in Monday’s auction.
The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.270 per cent, the same as last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.400 per cent, also unchanged from last week.
The three-month rate over the past two weeks was the lowest since May 9. The six-month rate over the past two weeks was the lowest since May 16.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,993.18, while a six-month bill sold for $9,979.78. That would equal an annualized rate of 0.274 per cent for the three-month bills and 0.406 per cent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 0.53 per cent last week from 0.59 per cent the previous week…
The Treasury Department auctioned $31 billion in three-month bills at a discount rate of 0.270 per cent, the same as last week. Another $26 billion in six-month bills was auctioned at a discount rate of 0.400 per cent, also unchanged from last week.
The three-month rate over the past two weeks was the lowest since May 9. The six-month rate over the past two weeks was the lowest since May 16.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,993.18, while a six-month bill sold for $9,979.78. That would equal an annualized rate of 0.274 per cent for the three-month bills and 0.406 per cent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, fell to 0.53 per cent last week from 0.59 per cent the previous week…
