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Latest News
Broker Lender Market Share – Q1 2018 Jun 11th
Credit unions saw their slice of the broker pie shrink in Q1. That comes despite OSFI’s January 1 stress test, which played right into their hands given they are provincially regulated. Broker market share for CUs fell 0.6% versus Q1 2017. Less competitive pricing was a key reason. In particul.... More »
I lost my home in a fire. Can I tap my LIRA to cover costs? + MORE Nov 18th
Q: My house was burnt in the Fort McMurray fire. I am now unemployed and my husband and I are struggling to make the mortgage payments on top of our rent payment. Our savings are now drained as well as money received from insurance—the town house was part of a condo and is being rebuilt.
We have.... More »
Mortgage renewal strategies in today’s high interest rate environment + MORE May 10th
The current interest rate climate for mortgage brokers and their clients is dramatically different compared to just a year ago, requiring a whole new strategy when it comes to renewals..... More »
No Spring Thaw in Sight for March Mortgage Rates + MORE Mar 7th
RateSupermarket.ca’s expert panel say lenders are taking a wait-and-see approach
Good news for early spring mortgage borrowers: interest rates won’t be rising along with the thermometer. While early signs of economic improvement are promising, consumer lenders and the central bank alike are hol.... More »
Smart Moves: Getting a pre-approved mortgage + MORE Nov 24th
Transcription Ottawa real estate salesperson, Jessica Lacasse, explains why getting a pre-approved mortgage can help you not only land the house of your dreams but also one that you can afford. Video by Darren Brown. Just because the temperatures in Ottawa are dropping doesn’t mean the Ottawa .... More »
Where does the down payment come from?
– moneysense.ca
(Tetra Image / Getty Images)It may surprise you to learn that the average down payment for Canadian homebuyers is just under $120,000, or one-third of the purchase price of the home.
A recent report released by the Canadian Association of Accredited Mortgage Professionals (CAAMP) has uncovered a plethora of data about home buying trends in the country, including from where exactly Canadians are receiving the funds to put towards a down payment.
The results are interesting. Around 56% of total down payments came from personal savings for all homebuyers, whether it was their first time purchasing a home or their second.
The second largest source of money came from “other” sources, mainly funds procured from the sale of an existing home, which was obviously a bigger factor for second-time and subsequent home buyers.
Family members and parents accounted for 7% of total down payments, 5% being in the form of gifts and 2% through loans. As expected, family played a much bigger role in funding down payments for first-time buyers than second-time or subsequent buyers…
Q2 2015 Bank Earnings – Mortgage Morsels
– canadianmortgagetrends.com
Canada’s Big 6 Banks earned a whopping $8.04 billion in the second quarter, up from just $6.3 billion a year ago. They got a boost, in part, from improving margins on variable-rate mortgages. That was largely due to the banks pocketing 10 basis points from the Bank of Canada’s 1/4 point rate cut in January. It helped Scotiabank, for example, post an impressive 12-bps rise in net interest margin (NIM) last quarter. The question on many analysts’ minds, however, was housing and interest rate risk. On that note, RBC said its stress tests confirmed that an enormous 400-bps rate increase would still be “within (the bank’s) risk appetite.” That’s at least READ MORE
CMHC Insurance Now Covers Only 50% of New Mortgages
– ratesupermarket.ca
The federal government’s plan to play a reduced role in Canada’s housing market is clearly starting to take hold.
Driven by a series of measures to tighten mortgage lending criteria and reduce taxpayer exposure, the Canada Mortgage and Housing Agency reports that it’s now insuring a scant 50 per cent of new residential mortgages.
The national housing agency insured 175,169 new home loans last year worth $41.7 billion, representing roughly one out of every two mortgages issued. As planned, the total value of mortgage insurance held fell $14 billion in 2014 to $543 billion.
CMHC expects that this number will shrink by a further $10 billion in 2015 as borrowers repay their loans faster than it sees itself underwriting new ones.
Also read: How Will New Mortgage Amortization and Refinance Rules Affect Me?>
Mortgage Insurance Harder To Come By
With home prices surging in Canada, Ottawa has been working hard to limit CMHC’s credit exposure, capping the agency’s potential book of loans at $600 billion through a series of measures designed to make it more difficult to obtain government-insured mortgages…
It’s a common refrain among Canadians looking into buy a home for the first time: they need to tap the “Bank of Mom and Dad.”
But precisely how many of us are doing that is not clear.
A report by the Canadian Association of Accredited Mortgage Professionals (CAAMP) suggests fewer of us are tapping that source than other studies have suggested.
It found that 18 per cent of first-time buyers in the past two years financed a down payment using money that relatives loaned or gifted to them.
That number is on the rise. It was 13 per cent in CAAMP’s November report.
But it’s also a far cry from a number BMO cited in April.
The bank’s 2015 Home Buying Report said that 42 per cent of respondents expected parents or relatives to help them buy their first home, while 40 per cent said they couldn’t complete a purchase without that assistance.
CAAMP came up with its numbers by surveying around 800 Canadians who bought homes in the past two years, while BMO spoke with just over 2,000 people…
The number of new home starts fell dramatically in May compared with the same month a year ago, according to new statistics released by Canada Mortgage and Housing Corp. The national housing market watchdog said new home construction fell to 330 units in May, down from 906 starts in May 2014. The poor month for construction adds to a low […]
