Interested in learning more about property mortgages in Canada? Look no further!
Latest News
Latest in mortgage news: Borrowers must adapt to ‘new normal’ of higher rates, says Macklem + MORE Jun 17th
Interest rates may slowly start to be easing around the world, but they won't be returning to pandemic levels and borrowers will need to adjust accordingly..... More »
Desjardins sees mortgage growth drive stronger first-quarter earnings + MORE May 15th
Residential mortgages now account for nearly two-thirds of Desjardins’ loan book, while impaired mortgage loans remained relatively stable despite ongoing economic uncertainty..... More »
Canada faces $400 mortgage payment spike: How banks are preparing for the renewal storm + MORE Oct 31st
With nearly half of mortgages set to reset by 2026, Canada’s banks say strong borrower equity and falling rates will cushion households, even as arrears edge higher and affordability remains strained..... More »
Should you use home equity to buy a house for your kids? + MORE Oct 5th
Ask MoneySense
My husband and I are considering purchasing a second home using the equity in our first home. We own the home—no mortgage. Estimated value is $1.2 million to $1.5 million.
We are hoping to support our children in moving out, while long-term planning for our downsizing when the ti.... More »
Early cracks in household credit hint at mortgage stress by 2026, CIBC’s Benjamin Tal warns + MORE Nov 6th
Household credit strain is creeping in at the edges, and CIBC economist Benjamin Tal says it could spread to mortgages as payment shocks peak next year..... More »
Home Prices Heat Up Despite High Interest Rates
– canadamortgagenews.ca
Some weird stuff is happening in the world of real estate. As you likely know, the Bank of Canada has steadily raised interest rates over the past year in hopes of cooling inflation. This was also supposed to cool the housing market. Conventional wisdom dictates that higher rates would result in more mortgage defaults, more housing supply, and lower home prices. Oddly enough, none of that is happening.
What’s Going On?
Despite the astronomical spike in interest rates, there are far fewer real estate transactions compared to this time last year. The number of new mortgages being registered has dropped significantly. The rental market has ramped up (a basement apartment in Toronto now goes for $2k – $3k/month, which is ludicrous). And most importantly, real estate prices have skyrocketed. Bidding wars are back in full swing, which is almost the exact opposite of what we expected to see from a rate environment like the one we’re in.
Why Is This Happening?
There are a few factors at play here…
While some Canadian lenders do offer fixed-rate terms for as long as 25 years, a five-year term is far more common in Canada.Health-care workers Annie and Ben, 33, can afford a bigger house. But is now the time as they look to grow their family?
– thestar.com
The couple has a combined annual income of $260,000, a modest mortgage, and is wondering how best to invest their savings.
