Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
How much you need to earn to afford a home in Toronto and the GTA + MORE Oct 8th
Looking at the Toronto housing market through a lens of percentages, shifting sales numbers and interest rates may be the go-to method for industry insiders, but for many run-of-the-mill buyers, there’s really one thing that matters: “What kind of home can I afford?”
To help answer that que.... More »
Latest in Mortgage News: Homeownership Becoming a “Pipe Dream” for Millennials Dec 9th
A growing number of millennials are resigning themselves to the fact that homeownership may be out of reach for them, according to a new poll. Nearly three quarters (72%) of millennials say they have a goal of owning a home, but nearly half (46%) admit that goal is a “pipe dream,” accord.... More »
How Canada’s Mortgage Lenders Adapted to the ‘New Normal’ Dec 14th
The COVID-19 pandemic and the resulting nationwide lockdown forced the country’s mortgage lenders—like many businesses across the country—to adjust their operations in this unprecedented and brave new world of conducting business. They were faced with keeping the country’s mortgage de.... More »
Is Canada’s mortgage stress test still relevant? Aug 24th
Earlier this month, the Bank of England scrapped its mortgage affordability stress test. With mortgage rates presumably approaching their peak for this rate-hike cycle, some are wondering if changes to Canada's stress test are overdue.
.... More »
How much credit card debt does the average Canadian have? + MORE Jan 18th
As the country re-opens after COVID-related restrictions, Canadians are faced with a worrying financial picture. Many have moved, others are looking to travel, and the cost of living is ballooning with unusual rates of inflation. Meanwhile, the Bank of Canada (BoC) rate hikes designed to curb these .... More »
CREA Blames Stress Test for Slow March Housing Market
– canadianmortgagetrends.com
The Canadian Real Estate Association (CREA) largely blames tighter mortgage lending rules for the slow housing market in March. Sales dropped 4.6% year-over-year to levels not seen since 2013. Sales were 12% below the 10-year average for March, and 20% below the average for British Columbia, Alberta and Saskatchewan. But there was a glimmer of […]
How to Use a Mortgage Calculator
– ratesupermarket.ca
Looking at mortgage rates for a new house? Need a mortgage calculator? Canada residents know it’s easy to fall in love with your dream home. But, it helps to factor in the mortgage loan amount and interest rate beforehand. You want to determine how much house you can afford - preferably before you call the movers!
Use these steps to walk-through how to use a mortgage calculator. You can find a mortgage that’s affordable (and, then tell the kids to go pack their toys).
When to Use a Mortgage Payment Calculator
A mortgage payment calculator can help determine your monthly mortgage payment. The payment is based on interest and principal (the mortgage).
To use a mortgage payment calculator, you need:
The mortgage loan amount: If the home costs $50,000, and you put down 20 percent, or $10,000, the loan balance is $40,000.
The payment type: Do you want monthly or bi-weekly payments?
The loan term: Typically loan terms (amortization) are 30-years unless you select a shorter term…
The Big Shift in Banking that Could Hurt Your Savings Accounts and Investments
– ratesupermarket.ca
Every once in a while you may get a notice from your bank. Your account’s monthly fees are going up. It may be a modest difference, of a dollar or so. You may write it off as the cost of doing business with your financial institution.
But right now, that fee hike may be a symptom of a broader economic phenomenon. It affects almost everything about your money, from how much you may pay for a mortgage to how much return you get on your savings.
What is it? The yield curve, which in Canada is teetering between flat and inverted. An inverted yield curve is uncommon, and it has ripple effects throughout the financial industry.
What is the Yield Curve?
The yield curve shows the relationship between expected returns on short-term versus long-term fixed income instruments. We’re talking here about how much banks make on the purchase of government treasury bonds.
When things are normal, the curve plots upwards. Typically, longer term vehicles bring in a greater return…
