CMHC again moves to tighten mortgage insurance rules as housing market cools + MORE Apr 25th

In an effort to tighten lender practices in the Canadian mortgage market and help further buffer the country’s financial institutions from a meltdown like that experienced in the U.S., the federal government is developing some stringent guidelines for lenders to follow. One result of the most recent initiative might be that it’ll be harder for the self-employed – who make up more than 15 percent of the Canadian workforce to qualify for mortgages.
Reviewing the Draft

On April 14, 2014, the Office of the Superintendent of Financial Institutions Canada (OSFI) released the draft guidelines for B-21.  It’s a follow-up to the OSFI’s B-20 Residential Mortgage Underwriting Practices and Procedures guideline released in 2012.
Ed note: Need to get up to speed on how B20 affected the market? Check out how these mortgage restrictions could affect your ability to buy.
“With Guidelines B-20 and B-21, once finalized, OSFI is making clear its expectations for both lenders and insurers operating in the housing market…

Canadians need to brush up on their money smarts – at least, according to the Federal Government. Last week, the very first Financial Literacy Leader was appointed, tasked with creating a national strategy aimed at improving consumer knowledge. Canadians can expect better access to learning and help resources as a result – good news, especially for our debt-laden youth (and equally debt-laden seniors).
Read on for our exclusive interview and for the week’s top headlines.

A Credit Card Conspiracy: Class Action Suit Targets Swipe Fees
Did you know – every time you make a credit card purchase, the retailer picks up the tab for the transaction fee? These charges can total up to 4% of your purchase – and small business owners and retailers are fighting back with a B.C.-based class action lawsuit.
If successful, it could mean retailers could refuse to process premium credit cards, or add a surcharge for consumers who use them.
Read Rubina’s Blog | A Credit Card Conspiracy?
Self Employed? B-21 May Make It Harder To Get a Mortgage
Last week, new mortgage changes were proposed that target the underwriting practices of mortgage insurers…

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Russia’s Lavrov: West plotting to control Ukraine
Russia’s economy felt the sting of the Ukrainian crisis Friday after Standard & Poor’s cut its credit rating to near junk and Moscow hiked interest rates to keep its sliding ruble from fueling inflation.
The impact could get harder as the West threatens additional sanctions. Still, Russia is showing no signs of backing down, saying Friday that pro-Russian insurgents in Ukraine’s southeast will lay down their arms only if the Ukrainian government clears out nationalist protesters in Kyiv.
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A fading middle-class perk: lower mortgage rates
WASHINGTON (AP) — For three decades, the U.S. middle class enjoyed a rare financial advantage over the wealthy: lower mortgage rates. Now, even that perk is fading away. Most ordinary homebuyers are paying the same or higher rates than the fortunate few who can afford much more.
Rates for a conventional 30-year fixed mortgage are averaging 4.48 per cent, according to Bankrate…

OTTAWA – CMHC is moving yet again to tighten the home mortgage market with changes that would make it more difficult for certain Canadians to obtain government-secured financing for real estate purchases.
The Canadian Mortgage and Housing Corporation says that as of May 30 it will no longer insure purchases by self-employed workers without third party income validation, and will offer no insurance on Canadians seeking to purchase a second property.
Self-employed Canadians can still qualify for CMHC insurance, but must be able to provide proof of their income levels, the agency said.
It estimated the changes would effect less than three per cent of the units it insures. Given the limited use of these products, their discontinuation is not expected to have a material impact on the housing market, the agency added.
The changes are part of the agency’s continuing review of its products and core mandate to support stability in the housing market, CMHC said in a statement.
“As part of the review of its mortgage loan insurance business, CMHC is evaluating its products and services to ensure they are aligned with these objectives,” Steven Mennill, senior vice-president of insurance, said in a statement…

Company: True North Mortgage Position Title: Mortgage Agent Years of Experience Required: NA Licences or Registrations Required: Mortgage agent licence Location of Position: Vancouver, British Columbia Applicants may contact: chris.rempel@truenorthmortgage.ca…