Learn more about Canadian mortgage rates, rules and the latest news – read on!
Latest News
Top Canadian Credit Card Issuers Cut Interest Rates and Pause Planned Hikes Apr 13th
The COVID-19 pandemic has swept many Canadians into unanticipated financial uncertainty. Mass temporary layoffs and job losses have left hundreds of thousands of people wondering how they are going to pay their rent and credit card bills in the coming months.
While the federal government is taking .... More »
Why Canadian fixed mortgage rates are rising again + MORE May 15th
After briefly dipping below 4%, most five-year fixed mortgage rates at Canada’s major banks are back above the 4% mark, and could stay elevated for the foreseeable future, experts say..... More »
Ottawa's apartment vacancy rate at 11-year high, rents also rise: CMHC + MORE Dec 19th
Canada Mortgage and Housing Corp. reports that vacancy rates in the City of Ottawa have hit an 11-year high, as more apartment units flood the market and fewer renters are looking for places to live. Yet, despite the high availability of apartments, average rents have also risen, according to the na.... More »
Your May Money Update + MORE May 10th
Feel like you have less cash this month? You’re not alone – spending tends to heat up during the warm weather days – Canadians are out of hibernation and we’re ready to shop. Between hitting retailers, the open road and the open houses, it can be easy to go over budget as temperatur.... More »
Latest in Mortgage News: Dominion Lending Centre Unveils New Deals + MORE Oct 23rd
Dominion Lending Centres continued its growth trajectory this month with several new announcements..... More »
Behind CMHC’s Premium Hike
– canadianmortgagetrends.com
On June 1 higher insurance premiums kick in for those buying a home with less than 10% down. These folks will cough up another 0.45 percentage points of their home’s value to get an insured mortgage. That’s got some wondering, why are insurers picking on people with small down payments? Why not raise default premiums on all insured borrowers? We posed that question to CMHC and here’s the answer we got: As we continue to refine and improve our stress-testing and capital modelling capabilities in line with global and industry trends, recent improvements have allowed us to be more refined in READ MORE
Basics of mortgage debt ratios
– moneysense.ca
Basics of mortgage debt ratios (Getty Images / Nigel Carse)Typically, mortgage lenders use the “Five C” rule when analyzing someone’s ability to afford a mortgage:
1) Capacity to repay (your income)
2) Current economic conditions (your profession’s current economic status as well as your city and country’s economic situation)
3) Capital put down (the down payment you provide, which is the amount of equity you’re offering to secure the asset)
4) Collateral (what the home is worth)
5) Character (your history of paying off debts, otherwise known as your credit history)
To qualify for a mortgage, lenders will examine two ratios:
#1. The GDS: Gross Debt Service is the percentage of the borrower’s income that is needed to pay all required monthly housing costs (mortgage payments, property taxes, heat and 50% of condo fees).
#2. The TDS: Total Debt Service is the percentage of the borrower’s income that is needed to cover housing costs (GDS) plus any other monthly obligations that an individual has, such as credit card payments and car payments…
The mayor of an Ontario town that’s on the hook for a controversial $49.5-million loan from the Canada Mortgage and Housing Corp. is rejecting calls for a forensic audit of its power utility. Blind River Mayor Sue Jensen made the comments this week at a public meeting that was residents’ first chance to publicly question their town council and the […]
