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Latest News
Scotiabank’s return to competitive mortgage pricing is “huge” for brokers + MORE Aug 2nd
Scotiabank is back. After “intentionally slowing” its mortgage portfolio last year due to funding constraints, Scotiabank has announced to its broker partners that its competitive pricing is back, along with an expanded retail package program. As Ron Butler of Butler Mortgage described, .... More »
Affordability tips for first-time home buyers to securing a mortgage + MORE Oct 29th
Q. My partner and I rent a two-bedroom apartment in Toronto in a great neighbourhood for $1,850 a month—so, a great deal. We have been living together for three years and would like to buy a house together next year, when we both turn 30.
Get the mortgage rate that works for you.Find the bes.... More »
Honouring the latest Mortgage Hall of Fame inductees Oct 20th
After a pandemic-induced hiatus, hundreds of mortgage professionals gathered at the Vancouver Convention Centre Monday night to honour the latest inductees into the Canadian Mortgage Hall of Fame..... More »
Bully for the white-collar crackdown + MORE Sep 20th
(Mark Wilson/Getty Images)
In early 2005, Martha Stewart was sitting in a prison camp in West Virginia, serving out her five-month sentence for lying about the sale of a few thousand shares in a biotech company. At the same time bankers, analysts, traders and mortgage underwriters at some of America.... More »
Expect To See More Purpose-Built Rental In Canadian Real Estate + MORE Aug 29th
Whether or not you are familiar with the term "purpose-built rental stock," chances are that you will be hearing more about it soon.
The Canadian real estate market is a major driving factor for the economy right now, and the rental market segment is a contributing force. Purpose-built rental unit.... More »
Where does the down payment come from?
– moneysense.ca
(Tetra Image / Getty Images)It may surprise you to learn that the average down payment for Canadian homebuyers is just under $120,000, or one-third of the purchase price of the home.
A recent report released by the Canadian Association of Accredited Mortgage Professionals (CAAMP) has uncovered a plethora of data about home buying trends in the country, including from where exactly Canadians are receiving the funds to put towards a down payment.
The results are interesting. Around 56% of total down payments came from personal savings for all homebuyers, whether it was their first time purchasing a home or their second.
The second largest source of money came from “other” sources, mainly funds procured from the sale of an existing home, which was obviously a bigger factor for second-time and subsequent home buyers.
Family members and parents accounted for 7% of total down payments, 5% being in the form of gifts and 2% through loans. As expected, family played a much bigger role in funding down payments for first-time buyers than second-time or subsequent buyers…
Q2 2015 Bank Earnings – Mortgage Morsels
– canadianmortgagetrends.com
Canada’s Big 6 Banks earned a whopping $8.04 billion in the second quarter, up from just $6.3 billion a year ago. They got a boost, in part, from improving margins on variable-rate mortgages. That was largely due to the banks pocketing 10 basis points from the Bank of Canada’s 1/4 point rate cut in January. It helped Scotiabank, for example, post an impressive 12-bps rise in net interest margin (NIM) last quarter. The question on many analysts’ minds, however, was housing and interest rate risk. On that note, RBC said its stress tests confirmed that an enormous 400-bps rate increase would still be “within (the bank’s) risk appetite.” That’s at least READ MORE
CMHC Insurance Now Covers Only 50% of New Mortgages
– ratesupermarket.ca
The federal government’s plan to play a reduced role in Canada’s housing market is clearly starting to take hold.
Driven by a series of measures to tighten mortgage lending criteria and reduce taxpayer exposure, the Canada Mortgage and Housing Agency reports that it’s now insuring a scant 50 per cent of new residential mortgages.
The national housing agency insured 175,169 new home loans last year worth $41.7 billion, representing roughly one out of every two mortgages issued. As planned, the total value of mortgage insurance held fell $14 billion in 2014 to $543 billion.
CMHC expects that this number will shrink by a further $10 billion in 2015 as borrowers repay their loans faster than it sees itself underwriting new ones.
Also read: How Will New Mortgage Amortization and Refinance Rules Affect Me?>
Mortgage Insurance Harder To Come By
With home prices surging in Canada, Ottawa has been working hard to limit CMHC’s credit exposure, capping the agency’s potential book of loans at $600 billion through a series of measures designed to make it more difficult to obtain government-insured mortgages…
It’s a common refrain among Canadians looking into buy a home for the first time: they need to tap the “Bank of Mom and Dad.”
But precisely how many of us are doing that is not clear.
A report by the Canadian Association of Accredited Mortgage Professionals (CAAMP) suggests fewer of us are tapping that source than other studies have suggested.
It found that 18 per cent of first-time buyers in the past two years financed a down payment using money that relatives loaned or gifted to them.
That number is on the rise. It was 13 per cent in CAAMP’s November report.
But it’s also a far cry from a number BMO cited in April.
The bank’s 2015 Home Buying Report said that 42 per cent of respondents expected parents or relatives to help them buy their first home, while 40 per cent said they couldn’t complete a purchase without that assistance.
CAAMP came up with its numbers by surveying around 800 Canadians who bought homes in the past two years, while BMO spoke with just over 2,000 people…
The number of new home starts fell dramatically in May compared with the same month a year ago, according to new statistics released by Canada Mortgage and Housing Corp. The national housing market watchdog said new home construction fell to 330 units in May, down from 906 starts in May 2014. The poor month for construction adds to a low […]
