Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
A few weeks ago, S&P said Canadian bank risk was rising, and it blamed mortgage brokers in the process. The rating agency wrote: “…The growing share of residential mortgages originated via brokers, compound the risks of high household debt and house prices…As brokers do not bear credit ri.... More »
As Big Six prepare to release earnings, rising household debt, slowing mortgage growth could weigh on outlook .... More »
TORONTO — Samantha Brookes has been warning Canadians to take a close look at the clauses in their mortgage contracts for years, but her refrain has become a bit more prevalent in recent months. Since the Office of the Superintendent of Financial Institutions’ mortgage stress test was implem.... More »
The government’s latest mortgage rule changes have caused an imbalance between supply and demand in almost every region of the country, and will result in an estimated 200,000 fewer jobs being created over the next three years. Those are among the findings of Mortgage Professionals Canada’s .... More »
Last year a third of mortgage holders in Canada chose to pay their mortgages aggressively, which is to say they paid more than the amount required. And the numbers were higher for those who bought their properties after 2013. Instinctively it would make sense to pay off your mortgage as quickly as y.... More »
With the arrival of the new year came the official start of OSFI’s new mortgage regulations. And the latest national home sales data suggests a significant number of Canadian homebuyers snuck in just under the wire and purchased homes before the new stress test rules took effect. This isn’t the only example of government policy […]
Q: My daughter and her husband did not earn enough, so my wife and I decided that we would help them by putting her name on the mortgage for the purchase of a new-build condo in Hamilton, Ontario. We opted to go with RBC and the mortgage was approved at a rate of 2.65%. In order to get the mortgage, however, my wife, who is currently 64-years-old, my daughter and I had to agree to purchase mortgage life insurance. We pay around $315 per month each, for a total monthly payment of $945. This is in addition to the monthly mortgage payment of $1,485. My question is whether or not this mortgage life insurance is mandatory or can I cancel it?
A: Masood, first, let me congratulate you and your family. Getting into the housing market can be tough for younger adults and it’s nice to know that you were willing to help your daughter and her husband out. Plus, Hamilton, Ontario is a growing city and it appears poised for growth over the next decade.
Now, in relation to your question if the mortgage life insurance is mandatory…