Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
Switching to a better bank account Dec 17th
Almost every adult Canadian has a bank account, according to the Canadian Bankers Association. And there are practical reasons for that: most of us need a bank account to cover rent or mortgage payments, receive paycheques and to maintain our lifestyles.
But what if you’re looking for a bank acc.... More »
5 surprises to avoid when switching mortgages before your term ends + MORE Jul 31st
These days, being a home owner with a mortgage can feel like you’ve ordered the chicken dinner before realizing there was a steak special. You orchestrate a last-minute switch before your meal arrives, and it’s only once your overcooked steak is served that you know you’ve made a mistake.
.... More »
Q1 Lender Earnings: The Recovery is Underway + MORE May 22nd
Some of the country’s key mortgage lenders unveiled their first-quarter results, which were positive across the board. The lenders were able to take advantage of a hot housing market, alongside improving economic conditions and reduced loss provisions. One highlight was Home Capital addressing.... More »
The Latest in Mortgage News – 2018 Forecasts Dec 27th
It can be a chore to stay on top of the latest mortgage news these days, particularly given the barrage of forecasts and predictions for housing markets in 2018. Unsurprisingly, the majority of forecasts for the year ahead have focused on OSFI’s new mortgage rules, including the mortgage stres.... More »
Equifax Launches Income Verification System + MORE Jan 23rd
Lenders across the country are trying to build their own versions of the evolutionary, if not revolutionary, Rocket Mortgage. But there’s one problem. Unlike in the U.S. where income/employment verification services are already available, Canada hasn’t had a good solution. That has now changed. .... More »
BoC: Interest rate not the only tool for aiding economy
– moneysense.ca
OTTAWA – The Bank of Canada says its trend-setting interest rate should not be considered the primary tool responsible for shoring up the country’s financial system.
In prepared remarks of a speech today, deputy bank governor Timothy Lane says other regulatory measures are also needed to help maintain financial stability and address any emerging vulnerabilities.
He says some of those regulatory measures include tightened mortgage-financing regulations introduced in recent years — such as the increase to minimum down payments.
What the new 10% minimum down payment means for you »
Lane also says in some cases government spending — or fiscal stimulus — may be necessary, though he warns that excessively expanding public debt can have its own negative effects on the financial system.
The central bank says the most concerning vulnerability is the combination of climbing household debt and elevated house prices — a situation it predicts will continue to edge higher due to the prolonged period of low interest rates…
In prepared remarks of a speech today, deputy bank governor Timothy Lane says other regulatory measures are also needed to help maintain financial stability and address any emerging vulnerabilities.
He says some of those regulatory measures include tightened mortgage-financing regulations introduced in recent years — such as the increase to minimum down payments.
What the new 10% minimum down payment means for you »
Lane also says in some cases government spending — or fiscal stimulus — may be necessary, though he warns that excessively expanding public debt can have its own negative effects on the financial system.
The central bank says the most concerning vulnerability is the combination of climbing household debt and elevated house prices — a situation it predicts will continue to edge higher due to the prolonged period of low interest rates…
Should this single mom rent or buy a Toronto condo?
– moneysense.ca
Q: I am a 38-year-old, divorced single female with twins who are seven. I am currently renting a three-bedroom condo in downtown Toronto. But I constantly debate the renting vs. buying decision. I currently earn $48,000 per year (which will go up as soon as I finish my schooling for a CPA in a year or two). I have a retirement savings plan at work with matching contributions from my employer. Currently, I am focusing on paying down about $7,000 in debt (should be payed off by the middle of this year), but wonder if I should then concentrate on buying a home or putting the money away in an investment? — Competing priorities, Toronto Ont.
Answer No. 1: There are a lot of factors to consider before you take the jump from renting to home ownership. You don’t want to end up in a situation where you find it difficult to make ends meet. Once you take into consideration some of the expenses associated with home ownership such as property taxes, maintenance, insurance and mortgage interest, you may find that renting is the better solution for you…
Rates drop on 3-month and 6-month US Treasury bills
– canadianbusiness.com
WASHINGTON – Interest rates on short-term Treasury bills fell in Monday’s auction to the lowest levels in two weeks.
The Treasury Department auctioned $37 billion in three-month bills at a discount rate of 0.315 per cent, down from 0.350 per cent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.420 per cent, down from 0.465 per cent last week.
The three-month rate was the lowest since these bills averaged 0.305 per cent two weeks ago on Jan. 25. The six-month rate was the lowest since these bills averaged 0.415 per cent, also on Jan. 25.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.04 while a six-month bill sold for $9,978.77. That would equal an annualized rate of 0.321 per cent for the three-month bills and 0.428 per cent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0…
The Treasury Department auctioned $37 billion in three-month bills at a discount rate of 0.315 per cent, down from 0.350 per cent last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.420 per cent, down from 0.465 per cent last week.
The three-month rate was the lowest since these bills averaged 0.305 per cent two weeks ago on Jan. 25. The six-month rate was the lowest since these bills averaged 0.415 per cent, also on Jan. 25.
The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,992.04 while a six-month bill sold for $9,978.77. That would equal an annualized rate of 0.321 per cent for the three-month bills and 0.428 per cent for the six-month bills.
Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for making changes in adjustable rate mortgages, rose to 0…
High debt, lost jobs, and Alberta-only rules are leading to worry about the return of jingle mail in the province.
Quicken Dropped a Bomb and the Mushroom Cloud is Big
– canadianmortgagetrends.com
Last November, U.S.-based Quicken Loans launched what may go down as one of the biggest mortgage innovations ever: The Rocket Mortgage. In a few words, Rocket Mortgage is a fully online system that lets people apply for a mortgage and be “unconditionally approved” in less than 10 minutes. Borrowers provide almost no documentation. Instead, Quicken validates income, employment, down payment, property valuation and existing mortgage status from an assortment of public and private databases. Here’s Quicken promoting it in Sunday’s Super Bowl ad (see if you notice any overstated macro-economic claims): The full bearing of Rocket Mortgage is READ MORE
