How much income do I need to qualify for a mortgage in Canada? + MORE Jun 20th

Interested in learning more about property mortgages in Canada? Look no further!

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Breaking a mortgage for better rates can pay off – but beware of the costs + MORE Oct 7th

Interest rates are dropping, but many Canadians are still feeling the hangover of the highest lending costs in a generation..... More »

Mortgage brokers explained: What they do, and what they don’t (Part 1) + MORE Nov 12th

The first article in our three-part series breaks down what brokers actually do — and don’t do — and why some misconceptions persist..... More »

5 smart strategies for renewing your mortgage + MORE Mar 25th

Owning a home has plenty of benefits, but it’s not without challenges. Over one million mortgages in Canada are set to renew in the next few years, and many home owners will be faced with higher interest rates. If you’re in this situation, you may feel squeezed in two ways: a higher interest rat.... More »

Shelter takes larger share in updated CPI basket weights + MORE Jun 17th

The latest update to the Consumer Price Index (CPI) basket gives even more weight to shelter costs—particularly mortgage interest and rent—underscoring just how much housing expenses are shaping the inflation experience of Canadians..... More »

Where to find a home under $1 million in Canada + MORE Sep 4th

If you figured you’d never be able to buy a home in Canada, we have some good news: home prices have been stalled or falling in most of the country’s major markets over the past two years. Mortgage rates are higher than they were five years ago, which affects the size of monthly payments, but th.... More »

Three big banks just slashed fixed mortgage rates: “Great news” for those facing renewal

– canadianmortgagetrends.com

Lenders across the country, including three of Canada’s Big 6 banks, are once again busy slashing fixed mortgage rates—a welcome sign for those facing renewal in the coming months.

Continue Reading On canadianmortgagetrends.com »

How much income do I need to qualify for a mortgage in Canada?

– moneysense.ca

The Bank of Canada made a long-awaited rate cut on June 5, but the effects of lower mortgage rates have yet to trickle down into housing market data. That was evident in May, as real estate affordability continued to worsen for would-be home buyers.

The latest monthly affordability report from Ratehub.ca, which calculates the minimum income required to qualify for a mortgage for the average-priced home in Canada’s major markets, found the measure increased in 11 of the 13 cities studied. (Ratehub and MoneySense are both owned by Ratehub Inc.)

The report analyzes regional real estate data, as well as mortgage and stress test rates, to see how affordability is changing in real time. In May, the average five-year fixed mortgage rate was 5.49%, resulting in a mortgage stress test rate of 7.49%. (The mortgage stress test requires borrowers to prove they can afford a mortgage at a rate 2% higher than the one they get from their lender.)

May’s decline in affordability was due to a combination of stagnant interest rates—which were little changed from April—and a short-term uptick in home prices in most Canadian cities…

Continue Reading On moneysense.ca »

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