Bank of Canada Governor Stephen Poloz says it’s time to rethink how we manage mortgages in Canada. In a speech this week to the Canadian Credit Union Association and Winnipeg Chamber of Commerce, Poloz suggests we should encourage longer term mortgages and create a market for private mortgage based security. All in an effort to ease some of the financial obstacles homebuyers face getting into the real estate market. This is especially true for first time homebuyers.
In his prepared remarks to the conference called “The future of Canada’s mortgage market,” Poloz said, “More choice for borrowers and more ways for lenders to diversify risks are desirable. To be clear, the system is not broken – it has served Canadians and financial institutions well. But we should not stop looking for improvements.”
Poloz also pointed to new measures announced in the Federal Budget as a progressive move for the mortgage system. That move will see the Canadian Mortgage and Housing Corporation (CMHC) share an equity stake with first time homebuyers in their purchase…
With warmer weather comes a renewed energy and hope for the coming months. It’s also the official start of the Spring housing market.
Are you considering buying a home? If so, here are a few things you should know before you head out house hunting.
#1 – Make it conditional
No matter what, insert a condition of finance clause into your offer for five business days. There are almost no exceptions to this rule.
There has been a lot of hype around bank preapprovals in 60 seconds. Uh, yeah… ok. Do you really think any bank will underwrite and approve you for a mortgage in 60 seconds? There are so many things that could go wrong with your mortgage and the property. Is the condo corporation financially viable? Is the house worth what you paid? Are there any issues with the title? Any easements, liens or other items that could prevent you from getting a mortgage? I’m just scratching the surface. But, I think you get my point.
Today, we’re seeing the unexpected effects of all the government mortgage rule changes…