Obtaining a mortgage or secured line of credit in Canada at the best rates is often a daunting task. We can help! Read the articles below for more info.
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Canada’s best credit cards for people with bad credit 2021 + MORE Oct 14th
Conventional wisdom may lead you to believe that if you have bad credit, you should swear off credit cards. But if you want to improve your credit score, you’ll have to show you can handle credit responsibly—and the only way to do that is (you guessed it) to have a credit card. When used properl.... More »
Have Questions About the New Stress Test Rate? Here Are Some Answers… Feb 22nd
The Department of Finance created shockwaves this week with its announcement that it will be revamping how insured mortgages are stress tested. Now that the dust has settled, here’s a more in-depth look at the implications, as well as some industry reaction. But first, a quick recap of what’s ch.... More »
Latest in Mortgage News: Mortgage Delinquencies on the Rise + MORE Dec 21st
The debt burden carried by Canadian consumers continued to rise this year, causing more people to fall behind on their debt payments…including their mortgages. The 90-day-plus delinquency rate for mortgages rose to 0.18% in the third quarter. That’s a 6.7% increase compared to a year ear.... More »
MoneySense Toolkit: The mortgage refinance calculator + MORE Jan 16th
Mortgage payment calculator
Depending on your circumstances, refinancing your mortgage can be a smart financial choice. However, while you can reap substantial savings, there can also be high costs when refinancing a mortgage. That’s where a mortgage refinance calculator comes in. It can g.... More »
It’s Financial Literacy Month Nov 10th
We’re celebrating Financial Literacy Month!
Join Senior Economist, Ted Tsiakopoulos and Mortgage Broker, Steve Garganis Thursday, Nov 12, 2020, at 1:00 PM Eastern Time for a chat about budgets, savings, debt, and more.
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Register Now: https://buff.ly/3lhmUl3
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CMHC Makes Dividend Payments to Government: What are They and Who do They Help?
– ratesupermarket.ca
Starting in 2017, the Canada Mortgage and Housing Corporation (CMHC) has been making both special and regular dividend payments to its shareholder, the Government of Canada. The largest sum was for $4-billion in June 2017, which was spread over two years. At that time they announced the implementation of a dividend framework, and have been making regular payments.
The framework, they say will ensure that CMHC effectively ‘manages its capital in relation to risk and pays dividends to the government when capital is in excess of levels required to deliver its objectives.’
This does not impact the government deficit as CMHC’s earnings are already consolidated into the government’s accounts.
For their part, CMHC says it continues to hold capital in line with its risk profile and in accordance with OSFI’s regulatory capital requirements.
CMHC is the main insurer of high ratio mortgages in Canada. If you put less than 20 percent down to buy a home, banks want a guarantee that they will still get their money if you were unable to make the payments…
How to Check Your Credit Score in Canada
– ratesupermarket.ca
Your Canadian credit score can make a big impact on your life, whether it’s to get a phone, apartment rental, or mortgage. The best way to get a sense of your credit situation is to get your credit score and credit report, which will give you a window into your full credit history and how it’s affecting you.
Check out our guide below to understand the mechanics of credit scores and reports, and how to make the right choice when buying one for yourself.
What’s the difference between my credit score and a credit report?
A credit report outlines every loan a person has taken out in the last six years. This includes information such as if bills are paid on time, how much is owed, and how close a person is to their credit limit. On a person’s report, R represents revolving debt, and it is rated from 0 (unknown) to nine (bad debt). An R1 rating means a person pays bills within 30 days, or as agreed. All of this credit info remains on a person’s file for at least six years…
Beware of Mortgage Insurance Double Charges!
– canadamortgagenews.ca
We’ve all heard the saying ‘necessary evil’ – something that we need or must have but don’t necessary like. It’s kind of like taking cough syrup that doesn’t taste so good but you know you need it to feel better.
Default mortgage insurance is a necessary evil. Without it, we wouldn’t be able to buy a home with less than a 20% down payment with low interest rates.
But what if you bought a house, paid the CMHC, Genworth or Canada Guaranty insurance… and a few years later you bought a bigger home or refinanced your mortgage for some home renos or debt consolidation?
Do you have to pay mortgage insurance again? If so, how much will this cost?
Financial Planner story gives new meaning to ‘necessary evil’
One of my readers, a Financial Planner, shared an experience with me. (And, I must admit, this isn’t the first time I’ve heard about this happening.) His client had a CMHC-insured mortgage and then later wanted to refinance the mortgage for some home renos… It appears his client was charged FULL CMHC insurance premiums on the entire mortgage, AGAIN!! This just isn’t right! We call this DOUBLE CHARGING!
Lender or Banker ERROR!
An insured mortgage can be refinanced with REDUCED insurance premiums charged ONLY on the NEW funds…
The Best City for Single Tenants? CMHC Report Reveals Almost Half of Montreal Renters Live Alone
– ratesupermarket.ca
According to a recent study from the Canada Mortgage and Housing Corporation (CMHC), the city of saints and festivals is also the city of renters.
CMHC’s latest Housing Market Insight report found almost half (45 percent) of households in the Greater Montreal area are occupied by tenants, not owners. And, interestingly enough, many of these renters (48 percent) live alone.
The report speaks volumes to the level of affordability in the Quebec census metropolitan area (CMA). Compared to other Canadian city centres, the cost of living in Montreal is relatively low, and about one-third of the renters in Montreal reportedly had incomes below $30,000, before taxes. A late-2018 CMHC rental market report found the average rental price for a one-bedroom apartment was $720, making housing costs fairly affordable for single tenants and those with lower incomes.
The report also revealed that lower-income households moved less often than other households. And when these lower-income households did move, they tended to stay within the area where they already lived…
Update on CMHC’s First-Time Home Buyers Incentive
– canadianmortgagetrends.com
Details have been few and far between on the government’s new First-Time Home Buyers Incentive (FTHBI) since it was announced in last month’s budget. But CMHC has finally provided a little more clarification. In a statement released on its website, the Canada Mortgage and Housing Corporation (CHMC), which will administer the FTHBI, acknowledged that, “we […]
