Obtaining a mortgage or secured line of credit in Canada at the best rates is often a daunting task. We can help! Read the articles below for more info.
Latest News
Rising household debt could be drag on long-term growth: federal document + MORE Aug 26th
Even debt-free Canadians could eventually feel a pinch from someone else's maxed-out credit cards, suggests research presented to senior officials at Canada Mortgage and Housing Corp..... More »
Mortgage brokers are slowly embracing AI tools like ChatGPT + MORE Jul 15th
AI is creeping into every industry imaginable, from oil and gas to fintech, and the mortgage industry is no exception..... More »
The Latest COVID-19 Mortgage News: Toronto Real Estate Sales Plunge 37% + MORE Apr 1st
New data suggests homes sales in Toronto dropped 37% last week compared to the same time last year, according to Realosophy Realty. The firm also says cancelled listings jumped by 27% as thousands of Canadians now find themselves out of work, putting into question the near-term future of Canada̵.... More »
Q3 2017 Bank Earnings – Mortgage Morsels + MORE Sep 16th
Canada’s Big 6 banks wrapped up another earnings season with another $10.69 billion in total net profit. Earnings were fuelled by strong mortgage growth for at least several banks, notably CIBC, which saw its mortgage volume shoot up 13% from last year, and RBC, with mortgage balances up 6%. D.... More »
TD reports strong mortgage volumes and stabilizing amortizations + MORE Aug 27th
Despite a sharp slowdown in mortgage originations this year, TD reported continued strong volume growth of 4% in the second quarter..... More »
$2 Million For A Back Yard? Single-Family Home Building Going Extinct In Canada's Largest Cities
– walletpop.ca
Construction of single-family homes in Canada’s largest cities is rapidly disappearing, the result of land shortages, changing policies and changing homeowner tastes.
The latest housing market outlook from Canada Mortgage and Housing Corp. shows that, despite booming home construction, Toronto will see a nearly 13-per-cent drop in the number of single-family homes built this year.
Of 32,400 housing starts forecast for the city this year, only 7,700 will be single detached homes, CMHC reported, down from 10,700 as recently as 2012. Single-family housing starts have dropped for five straight years, the agency said.
“Demand for condominium apartments [is] expected to remain strong as affordability erosion in the low-rise market pushes buyers (especially first-time) further into the condominium market,” the CMHC report said.
That “affordability erosion” could mean that, this year, popular inner-city Toronto neighbourhoods such as Lawrence Park, Forest Hill and Leslieville could see average house prices hit $2 million, the CMHC predicted…
Will Rising Global Bond Yields Mean Higher Mortgage Rates?
– ratesupermarket.ca
Canadians have enjoyed particularly low fixed mortgages rates for several years now, and they have the bond market to thank. As the bond market and fixed rates have a close relationship, historically-low yields have allowed banks to offer rock bottom pricing. In some instances, fixed rates have been priced as low as variable rates which, because they follow the Bank of Canada’s overnight lender rate, are typically much cheaper than the fixed variety.
But the days may be numbered for great fixed-rate discounts, as bond yields are rising around the globe. Experts are predicting fixed mortgage rates will be soon to follow.
Why is this occurring – and what can prospective mortgage borrowers expect? Here’s our breakdown.
What’s Happening to Bonds?
Bond investors are selling their bonds off around the world, causing prices to slump and yields to soar. There are a number of different reasons behind this trend:
In Europe, German bonds are slumping due to a continent-wide sell off…
We don’t charge you mortgage insurance: CMHC
– moneysense.ca
CMHC and Genworth don’t charge mortgage insurance fees. You’re bank does (Getty Images / Oxford)We recently got an email from a reader who was quite perturbed. He had saved his money was diligent about his budgeting, and was set to purchase a modestly priced home near Ottawa. But when he went to use the Canada Mortgage and Housing Corporation’s mortgage calculator to figure out his final costs, he was surprised to see an additional $2,500 tacked on to his mortgage. Here’s why:
Q: Every resource I’ve consulted says that a down-payment of 20% or more on a home waives any mortgage insurance premium that I would be required to pay if I were putting down less of a down-payment. However, when I use the CMHC mortgage affordability calculator, and enter a purchase price of $250,000 with a down-payment of $50,000 (20% of the home’s value), it gives me a mortgage insurance premium of $2,500 not $0. My question is why are home buyers told that a 20% or more down-payment is sufficient to avoid mortgage insurance fees, if that’s not the case? — Peeved with Premiums
Dear, Peeved with Premiums: You have a right to be concerned…
MCAP’s Fusion is Here
– canadianmortgagetrends.com
It’s a good day to be a top status broker at MCAP. This morning the company launched its Fusion line of credit (LOC) to its biggest supporters—i.e., “Ambassador Plus” brokers. “Our brokers asked for this product and we delivered,” MCAP’s VP Sales, Elaine Taylor says. Fusion is the only automatically readvanceable mortgage available to brokers from a national non-bank lender. Several other monoline lenders have talked about offering this sort of product, but none of them have been able to arrange the funding for one. Most non-bank broker lenders rely on securitization and the LOC component can’t be securitized. Hence, READ MORE
