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
Alterna Bank’s Fully Digital Mortgage Apr 6th
You can’t get a mortgage without talking to someone. Online mortgages are an invitation for fraud. You can’t assess mortgage suitability online. Digital signatures aren’t safe. You can’t cross-sell an online mortgage customer. These are the modern-day urban myths of Canada&.... More »
Pace of residential construction slows in Ottawa + MORE Dec 10th
Builders in and around the city of Ottawa have scaled back the pace of construction on the heels of a recent warning from Canada Mortgage and Housing Corp. Last month the federal housing watchdog said a glut of unsold condominiums was cause for concern for the health of Ottawa’s housing m.... More »
Housing starts near 10-year high on Toronto condo boom + MORE Dec 9th
Canada Mortgage and Housing Corp. says the pace of housing starts picked up in November, with condo building in Toronto driving the trend..... More »
Metro Vancouver home sales jump 32% in October amid lower mortgage rates + MORE Nov 6th
Higher inventory provides more options for buyers as demand picks up, fuelled by recent Bank of Canada rate cuts..... More »
Does the government really believe there is a serious risk of rates rising? May 18th
“Watch What I Do, Not What I Say” This is one of the most useful things I learned in high school. Thank you, Mr. Hall! The federal government has clearly told us that mortgage borrowers need to be prepared for much higher interest rates in the future, since the stress test for all insured.... 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
