Learn more about Canadian mortgage rates, rules and the latest news – read on!
Latest News
Fixed mortgages are falling. Experts explain why and weigh in on fixed vs. variable Jun 11th
Both existing homeowners and new homebuyers are benefiting from a drop in interest rates see over the past week..... More »
DLC Takeover Bid Collapses Dec 21st
Unexpected drama is unfolding with one of Canada’s leading mortgage brokerages. Back in September we reported how DLC was making a play to retake control of itself from Founders Advantage Capital Corp (FA). The deal was to lead to increased investments in broker technology and new acquisitions of .... More »
Canada mortgage renewal shock coming: CMHC - CityNews Vancouver + MORE Nov 10th
Canada mortgage renewal shock coming: CMHC CityNews VancouverBank of Canada warns mortgage borrowers may face higher rates upon renewal CBC News2.2M mortgage holders will face ‘interest rate shock’ in next 2 years: CMHC Global NewsMortgage holders concerned about.... More »
For many homeowners 55+, the goal is no longer downsizing, but aging in place + MORE Jul 23rd
Here’s how mortgage brokers can support their needs..... 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 »
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 […]
