Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
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Mortgage affordability calculator + MORE Nov 19th
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Mortgage affordability is an essential part of setting up your home-buying budget, and it’s based on a many factors—more on those later. If you’re looking to buy a home, one of the first things you’ll want to know is your mortgage affordability. And for that, you should start.... More »
What’s the TRUE Impact of Policy Changes on the Canadian Mortgage Market? Dec 15th
It’s certainly not what the Bank of Canada (BoC) is claiming!
The BoC recently released a document detailing what it believes to be a positive report on the Canadian Mortgage Market, but this article clearly shows how out of touch our government is.
The BoC is applauding their statistics̷.... More »
Siddall Launches Latest Volley in War of Words with the Mortgage Industry Jun 14th
For anyone who has been following the saga, it should be plainly obvious where Evan Siddall, head of the CMHC, stands on the mortgage stress test. In a recent editorial, we took an in-depth look at Siddall’s at-times passionate defence of stricter mortgage qualification rules. Part of that include.... More »
Q2 2021 Bank Earnings – Profits Soar as Loss Provisions Plunge + MORE Jun 19th
The Big 6 banks saw profits soar in the second quarter thanks to strong mortgage growth and massive loan-loss provision reductions..... More »
Inheritance coming your way this year? Planning for it means you won’t waste it Jan 9th
Set life goals, think of the present and future, weigh your contribution to the mortgage, and earn interest all the while, says Lesley-Anne Scorgie..... More »
Packing Less Punch: Millennials’ Home Purchasing Power Drops by $40K due to New Stress Test Rules
– ratesupermarket.ca
Millennials looking to purchase new property across Canada this year are going to have to settle for less. The average peak millennial’s purchasing power in Canada is 16.5 per cent lower than it was at this time last year, meaning they qualify for a mortgage of about $40,000 less than before.
The finding comes from Royal LePage, which put out a study last week looking at how purchase power for millennials took a hit after the recently introduced OSFI stress test regulations. For the purpose of this study, Royal LePage focused on “peak millennials” – a term used to describe the largest cohort of millennials, born between 1987 and 1993, and their potential purchasing power.
“For peak millennials, the group which makes up the bulk of our first-time homebuyers, the path to property ownership has been a challenging one. In our largest cities, it is difficult for young people to purchase a home on a single household income,” said Phil Soper, president and CEO of Royal LePage…
TD & RBC raised the POSTED rate… but not their REAL rates
– canadamortgagenews.ca
Much has been written about last week’s Posted rate hikes by TD and RBC. Don’t panic! This is just their posted rate – it’s not the actual rate they give to clients.
I do, however, think we’ll see a minimal rate hike in the coming weeks due to five-year Government of Canada bond yields increasing slightly. Fixed rates are priced closely to bond yields.
Here’s another piece of info the banks don’t want advertised: Last week, I published an article about Inflated Mortgage Penalties and how the BIG SIX BANKS use an unfair formula to calculate your penalty.
Good timing. The next day, these two banks did what I reported. They’re registering a larger rate discount, which will end up costing you a higher penalty if you need to break your mortgage early!
MY ADVICE…
I’ve been advising my clients to go variable – especially if you’re with a BIG SIX BANK. Your penalty will always be capped at three-months’ interest, which is much better than a potential, 10, 12 or even 14-months’ penalty! Yup, that’s right, banks have charged many borrowers outrageous penalties that have cost $10,000, $20,000, $30,000 or more…
