Learn more about Canadian mortgage rates, rules and the latest news – read on!
HARDER TO QUALIFY WITH 50% DOWN THAN WITH 5% DOWN.. DOES THIS MAKE SENSE? October 2016, our Federal govt announced a number of new mortgage rules including the infamous new ‘stress test’ for all insured mortgages. Mortgage default insurance is required for all mortgages greater than 80.... More »
Most of the financial world is already heavily invested in online distribution. And then there’s the mortgage business. Our industry is scampering to catch up. But catch up it will…and soon. That was the vivid takeaway from last week’s 2nd annual Digital Mortgage Conference in San Francisco. I.... More »
Among external factors that affect housing markets, two are by far the most important and both are more or less directly controlled by the federal government. The first is policy regulation that defines the rules and parameters under which mortgage loans can be originated. The second is the interest.... More »
Q. I live in Manitoba and have about $600,000 invested in GICs at a local credit union. I am 63 years old, retired with a pension, no debt and no mortgage. However, I still worry about this money and it has been hard for me to find an unbiased view on its safety. Can you help? —Glenda W. A. I thi.... More »
Historically low interest rates in recent years that has led Canadian investors to increasingly venture into the world of private mortgage investment corporations or MICs. These structures promise steady returns at much higher yields than traditional fixed income investments nowadays. But are they too good to be true?
Dustin Van Der Hout and James Price of Richardson GMP in Toronto think so. In a recent note to clients they argue that MICs are particularly risky vehicles at the present time. They suggest that the benefits of these investments are overstated and the current risks under appreciated.
Drawing on their piece, here are five things you need to know about mortgage investment corporations.
1. What are they?
As the authors explain, MICs are pools of capital which invest in private mortgages in Canada. They are a way for an individual investor to gain direct exposure to the mortgage market in Canada. MICs account for the bulk of private mortgage issuance in the country and are regulated by OFSI, the federal regulator of financial institutions…
New data from CMHC shows average credit scores of mortgage holders across the country are continuing to rise. A full 80.7% of mortgages in Canada are held by borrowers with a “very good” (700-749) or “excellent” (750+) credit score, CMHC says. That’s up from 78.2% in 2012. Meanwhile, the percentage of mortgage holders with “fair” […]