Learn more about Canadian mortgage rates, rules and the latest news – read on!
Latest News
Mortgage arrears have yet to peak, but unlikely to reach long-term norm: BMO + MORE Aug 1st
Despite a gradual rise, Canadian mortgage arrears are expected to remain manageable due to the economic recovery and the mortgage stress test.... More »
Fixed mortgage rates are rising. What’s the deal? + MORE Apr 21st
As variable-rate mortgage holders eagerly anticipate the Bank of Canada's first rate cut, fixed rates are heading in the other direction: up..... More »
Reverse mortgages are booming amid Canada’s turbulent rate environment + MORE Jan 31st
High rates haven't stopped Canadians from tapping their home equity by way of reverse mortgages..... More »
OSFI considering the need for additional regulations on existing mortgages + MORE Apr 22nd
Canada’s banking regulator says it is considering whether to extend the scope of its mortgage guidelines to include existing mortgages. In its second Annual Risk Outlook released this week, the Office of the Superintendent of Financial Institutions (OSFI) said it will “consider the scope of .... More »
NBC says rising rates will lead to mortgage market “normalization” + MORE Aug 30th
National Bank of Canada, the smallest of the Big 6 banks, reported third-quarter earnings in-line with market expectations..... More »
How can I save on monthly mortgage payments besides switching to a fixed-rate mortgage?
– thestar.com
Spreading out your mortgage balance over a longer term can help lower monthly mortgage payments and give you some wiggle room in your budget.How will the latest rate hike impact variable-rate mortgage holders?
– canadianmortgagetrends.com
Variable-rate mortgages in Canada are now averaging about 4.20%, a full percentage point higher than they were a week ago.
The Canadian mortgage stress test, explained
– moneysense.ca
The Canadian mortgage stress test applies to anyone applying for a mortgage, refinancing their current home loan, or renegotiating the terms of their mortgage contract with a federally regulated lender. And while provincially regulated lenders have more flexibility when it comes to mortgage approvals, many still use the test to evaluate customers’ financial risk. This means that most home buyers in Canada are subjected to the stress test.
“It applies to everyone—you, me, first-time buyers and 10-time buyers,” says Maxine Crawford, a mortgage broker who serves the Greater Toronto Area (GTA) and elsewhere in Ontario. “That includes people who already own a home and need to refinance or renew their mortgage [with a different lender.]”
In spite of its broad application, many Canadians have never heard of the stress test or still don’t understand how it works. Here’s what you should know before you apply for your next home loan.
What is the mortgage stress test?
First off, it’s not a test like the kind you encounter in school…
